Environment minister Elliot Morley has confirmed over £2m worth of funding to support projects for sustainable living.
Over 35 projects from voluntary groups across England are set to benefit from the Government's Environmental Action Fund including the Leeds-based Carplus Scheme which will get a £130,000 grant.
Philip Igoe, co-director of Carplus, said the initiative aimed to enable people to make travel choices based on more accurate information about environmental and financial costs.
He added: "We aim to monitor people's travel patterns before the introduction of the service and for a two-year period after its introduction.
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"Although the idea of a community car scheme is not new, we believe this project is a world first in gathering such extensive hard evidence on the benefits.
"We expect to see carbon savings of up to 70 per cent – as well as financial and health benefits for the users."
News of the government's backing follows the recent announcement that the Leeds-based regional development agency, Yorkshire Forward, was to back the Carplus initiative as part of a £500,000 investment to support the development of a series of new clubs across the region.
Car clubs are a means of 'pay as you go' motoring, where specialist operators provide members with a range of cars from small to family-friendly models.
Members book a vehicle for as long as they need – be it a few hours, a day or a week – and, typically, pay less than £5 an hour for its use during that time.
One Leeds-based car pooling company, Whizzgo, has some 500 users in the city and plans to expand nationwide. It has already signed a 10-year contract with Leeds City Council.