Sweden's Scania, one of the world's largest heavy-truck and bus manufacturers, said today it would offer its ethanol-powered buses at a reduced price as part of an agreement with the Clinton Climate Initiative.

The initiative was founded by former U.S. President Bill Clinton.

Scania made the announcement at the Scania Transport Conference in Brussels. Under the climate change pact, the company said it would sell the busesto 40 of the world's largest cities at a price equivalent to its diesel buses.

"Improved global economic conditions and increased trade have generated a dramatic growth in transport. The critical question is how to ensure that the growing demand for logistics services is compatible with lower environmental impact," said Leif Östling, president and CEO of Scania, in a statement about the conference.

An ethanol bus from Scania costs $334,700, about $17,000 more than diesel. The 40 cities include New York, London, Tokyo, Mumbai, and Shanghai.

Scania said it would start off the discount program in cities where it already has operations. The company, which employs 32,800 people around the world, operates in about 100 countries.