Fine Gael is proposing that most public buses and State vehicles should be converted to run on biofuels within five years, under an ambitious new energy policy which it is to outline today.
Its Energy for the Future plan will also outline stiff new targets for energy efficiencies in homes and businesses, including grant aid for improving insulation and introducing other energy-saving measures at home.
The 35-page plan will detail a series of "carrot-and-stick" measures the party is promising to introduce if elected to government, including increased grant aid and support for firms developing biofuels and legally binding targets for the use of alternative energy and energy efficiencies in buildings.
It will also outline a series of new initiatives aimed at creating a market for bioethanol and biodiesel, including the requirement that petrol and diesel sold at forecourts contain a certain amount of biofuel.
Cars with high emission rates will face higher VRT and motor taxes under the proposals.
It will set a target for electricity generation from renewable energy sources, such as wind, above and beyond the current 13 per cent target set for 2012 in EU law.
Increased grant aid for farmers planting bio-fuel crops such as elephant grass and rape seed will also be included in the document, along with an enhanced package for firms producing biofuels.
The document, which will be launched by Fine Gael leader Enda Kenny in Dublin later today, comes as the rising cost of oil and climate change problems has moved the issue of alternative energy towards the top of the political agenda.
In December the Government announced a €200 million package aimed at developing the biofuel market in the State.
Last month, Minister for Natural Resources Noel Dempsey announced a €27 million grant package for home-owners to install renewable energy systems in their homes, including solar panels, geothermal devices and wood pellet boilers. The scheme has seen inquiries from more than 15,000 homeowners in the last two weeks.
The Government will also be launching a new energy policy for the State later this year.
Ireland's reliance on fossil fuels has become an increasing concern amid rising oil prices, which have returned towards $70 a barrel in recent days. Various reports predict that oil prices will continue to rise as fewer oil discoveries are made over the coming two decades.
The country is one of the most oil-dependent states in the European Union, and last week the State enterprise agency Forfás warned that Ireland's long-term economic well-being was threatened by this.