Spain has been given the all-clear by the EU to offer subsidised loans to its green car industry.
The two-year loans will be available until the end of 2009 to car makers and suppliers who invest in products that meet EU environmental standards.
The scheme may have been put on hold because of the current financial crisis but EU Competition Commissioner Neelie Kroes said investment in a future low-carbon economy was necessary.
The Spanish government last month approved a four €4bn (£3.7billion) car industry support package following staff layoffs and temporary plant closures. This was also cleared by the EU Competition Commission as it did not breach any internal-market or EU state aid laws.