Mart Raamat, adviser on energy at the Ministry of the Environment, said that while the ministry has no conclusive plan at this point, the measure would be directed at businesses with intensely-used vehicle fleets.

'Taxis could be a logical focus, they run up big mileage in the urban environment. It would have a positive effect on ambient air and climate,' Raamat said.

According to the portal, the size of the subsidy would be to the tune of €5,000 per vehicle, and a cap would apply to the number of vehicles that can be purchased with the subsidy.

The ministry hopes to have the measure in place by the spring or summer 2019. It could be partially financed using proceeds from the sale of emission credits.