Green cars should be duty-free

"That would be a great first step," according to Honda Australia senior director, Lindsay Smalley.

"In some states, like the ACT, they also have favourable tax rates on things like stamp duty."

Smalley believes more can be done to encourage car buyers into new technology both at a state and federal level. His green message comes as Australia celebrates World Environment Day today.

Smalley joined fashion designer, Akira Isogawa, yesterday to promote the event, handing over two Honda Civic hybrid sedans to car share company Flexicar in Melbourne's CBD.

"There is a natural marketplace resistance to new technology so the Honda hybrid Flexicar will help send a positive message to consumers," Smalley said.

Flexicar founder and CEO, Monique Conheady, expects the hybrid Hondas to be popular among the company's 2000 members in Melbourne and Sydney.

"We've got the cars for a 12-month trial and then definitely we'll put more on," she said.

"Our customers are asking for hybrid cars."

One car would be available at Flagstaff Gardens and the other in Surry Hills, Sydney.

"We're seeing a lot of referrals but I believe there is much more opportunity to market the concept," she said.

The Honda hybrid will cost the same as the smaller Jazz to rent.

"It was important to send a message to consumers that they did not need to pay more for fuel-saving hybrids," she said.

A Flexicar costs between $9 and $13 an hour or $69 to $89 for a whole day including insurance and petrol. Cars can be booked for just an hour or up to three days. The company operates 70 cars, mostly Honda Jazzes, in key inner city areas in Melbourne and Sydney.

Flexicar started four years ago with just three cars and a handful of members. The scheme targets high density inner urban areas with good public transport close to drop off and pickup points for its cars.

"We're seeing a lot of single people become members, particularly those in the inner city areas who don't want to spend money on owning a car," she said.

"Also, many families use us as the 'second' car.

"They may already have a family car but occasionally need a second car for short trips."

Similar car share schemes operate in the US and Europe and are extremely popular with 900 cities globally participating. Zipcar in the UK and United States, has more than 80,000 people signed up.

Smalley also wants hybrids and alternative-powered green cars to get more priority parking spaces. Already some municipal councils and shopping centres are considering such moves. Westfield and Sydney's Darling Harbour exhibition centre already have priority parking for hybrids and Sydney and Melbourne airports have been trialing hybrid parking spots.