The taxis will be branded with a special green sticker
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Three thousand black cabs in London can now fill up with biodiesel to help cut carbon dioxide emissions and pollution.
Radio Taxis is offering its drivers the option of using the new 30% sustainable fuel blend, which reduces the harmful gases the vehicles emit.
According to the firm, it is the first biofuel to be specifically created for use in taxis and cuts CO2 by 7%.
Taxis running on the fuel will be branded with a special green sticker on the windscreen.
Tailpipe testing by a government-approved laboratory found the fuel cut harmful emissions. It also led to an improvement in miles per gallon of almost 10%, the firm said.
It is hoped that the combined impact of reduced CO2 emissions and improved mileage per gallon will cut the amount of CO2 produced by the entire fleet by 3,000 tonnes per year.
Endorsing the move London mayor Ken Livingstone said: "London already has the best taxi service in the world, and I am working with the taxi trade to make it the cleanest."