Germany has rejected an initiative that would have promoted the use of diesel particle filters, known to substantially reduce harmful emissions.

The government bill had called for tax breaks for consumers who wanted to buy new vehicles fitted with the particle filters.

New cars would come with a €350 tax break while the price of fitting filters on old cars would have been reduced by €250.

However Germany's upper house, the Bundesrat, voted on Friday against the measure as it related to new cars.

"New vehicles do not need a break," Tanja Goenner, environment minister of Baden-Wuerttemberg, told Reuters.

The decision is thought to have been influenced by the fact that the German states which make up the Bundesrat benefit from vehicle tax revenue, predicted to fall by between €550 and €600 million a year had the law been passed.

Other measures to promote the use of particle filters have been suggested, including introducing different tolls for more polluting trucks on German motorways.