In a move that could have a major effect on the motor industry all over Europe, the French government has announced a long-term plan to gradually phase out the use of diesel fuel for passenger cars.

They will put in place a system to identify the most polluting vehicles according to Prime Minister Manuel Valls.

Next year, the government will launch a car identification system that will rank vehicles by the amount of pollution they emit. This will make it possible for local authorities, amongst other things to limit city access for the dirtiest cars. About 80 percent of French motorists drive diesel-powered cars.

"In France, we have long favored the diesel engine. This was a mistake, and we will progressively undo that, intelligently and pragmatically," Prime Minister Manuel Valls said.

Taxation will be used to raise the price of diesel and the government have been working on plans to widen the number of beneficiaries of a subsidy for the conversion of old diesel engines in areas with anti-pollution plans. They also announced earlier this year that drivers scrapping diesel-powered cars to buy an electric one would be entitled to a bonus of up to €10,000.