No sooner had the curtain come down on Euro 2008 in Vienna than the Austrian government chose to earmark a goal of its own for the environment.

New tax laws came into effect on Tuesday which are aimed at encouraging Austrians to buy more green cars - and to hit those that still choose to drive petrol guzzling alternatives.

According to the laws, consumers that buy vehicles that emit less than 120g/km of CO2 and less than 60mg of nitrogen oxide per kilometre could pocket tax bonuses in the region of €500. By contrast, motorists that choose a vehicle emitting in excess of 180g/km of CO2 will pay a penalty of €25 per excess gram. The most high-polluting cars could face tax penalties ranging from €4,000-€10,000. Value added tax of 20 per cent is added to the vehicle’s price.

The goal outlined by the grand coalition of Social Democrats and conservatives is to cut carbon emissions by 33,000 tonnes per year. It is also believed that the new penalties could raise around €21million for the government.

The Green Party in Austria however, has brandished the idea for not going far enough. It states that the tax penalties and breaks will only apply to around 20 per cent of new vehicles as most fall in the bracket of emitting between 120 and 160g/km of CO2.

There are more incentives however for the most environmentally conscious drivers. The city of Vienna is offering a premium of €1,000 to anyone who purchases a natural gas powered car or who refits their car to drive with natural gas.