Britain will invest 90 million pounds on measures to cut carbon dioxide emissions from homes and industry, including two hydrogen plants, the government said on Tuesday.
Britain last year became the first G7 country to set a target to reach net zero emissions by 2050.
The country has reduced emissions from its power sector, by increasing renewable power such as wind, but has struggled to cut emissions in the heating and industrial sectors.
"Cleaning up emissions from industry and housing is a big challenge but today's ... investment will set us on the right path as we develop clean technologies like hydrogen," said Kwasi Kwarteng, Minister for Business, Energy and Clean Growth.
The bulk of the money, 70 million pounds, will help fund two low-carbon hydrogen plants, in the Mersey, in the north of England and one near Aberdeen in Scotland, and a project to produce hydrogen using offshore wind power.
Hydrogen is a zero emission alternative to fossil fuel. It seen as a possible clean energy source for the future but it is currently too expensive for widespread use.
The remaining 20 million pounds will be used to fund projects to cut household emissions.