The U.K. government has announced that it's investing $181.3 million in the research and development of low carbon vehicles.

The government's Technology Strategy Board said the cash would be used by projects looking at technologies such as lightweighting, internal combustion engine developments, fuel cells, energy storage and aerodynamics.

"These investments will provide a great opportunity for British companies to mobilize innovation to respond to global climate change challenges and to meet demanding new CO2 standards for new vehicles," said Ian Pearson, the U.K's science and innovation minister.

The Technology Strategy Board said it would invest $44.8 million in 16 new research projects, and $136.5 into a Low Carbon Vehicles Integrated Delivery program.

The board said that along with investments from the companies involved, the total value of the 16 research projects is $101.4 million.

According to the government, the Low Carbon Vehicles Integrated Delivery program will coordinate low carbon vehicle activity from initial research through to future procurement opportunities, speeding up the time it takes to get low carbon vehicle technologies into the marketplace.

Transport Minister Jim Fitzpatrick said, "Developing cleaner and more efficient vehicles is vitally important in our efforts to combat climate change."

"I hope that this will stimulate further growth in the market and that low carbon vehicles will soon be a common sight on our roads, so that we can continue to push forward reductions in carbon emissions"

The Low Carbon Vehicles Integrated Delivery program, set to launch in the fall, is also expected to get matching funds from industry.