The Government is providing £500,000 to support the development of car sharing schemes that are expected to help ease congestion and cut carbon emissions.
It will fund two pilot programmes to promote wider access to car clubs, which currently already have more than 150,000 members in England.
A Department of Transport spokesperson told ELN the projects will focus on using Ultra-Low Emission Vehicles (ULEVs).
According to DECC, evidence suggests the pay-as-you-go car use encourages people to walk and cycle more often and make more frequent use of public transport.
Transport Minister Baroness Kramer said: “Car clubs cut congestion, reduce carbon and save people money while still giving people the freedom and flexibility to use a car when they want to. Interest in car clubs is already gathering pace and we want to give that interest added momentum.”
The Department for Transport is already funding 48 car club and car sharing schemes through its Local Sustainable Transport Fund.