The diesel is created from 100% renewable and sustainable waste.
Many of Hinckley and Bosworth Borough Council's refuse trucks, street sweepers, vans and lorries have switched to hydrogenated vegetable oil (HVO).
HVO is a diesel created from 100% renewable and sustainable waste. It is made from raw materials that otherwise would be discarded, including used cooking oil, animal fat from food industry waste, vegetable oil and fish fat.
The switch in fuel will reduce council carbon emissions by 25%.
The vehicles that have made the switch to renewable oil include 17 refuse trucks, two sweepers, two box vans, a skip lorry and a tractor.
Councillor Lynda Hodgkins, said: "This change makes a significant reduction in our emissions. Our HGV fleet is on a seven-year contract and we continue to explore electric vehicles, but this switch gives us really positive reductions in our CO2 emissions quickly."