Grass cuttings could be used as an alternative source of fuel in future.
The Carbon Trust is working with York University to investigate the potential of using grass cuttings, believing it will be possible to use microwave technology to transform garden waste into biofuel using a process called pyrolysis.
The end result is a biofuel that can be blended with fossil fuels or used as a standalone fuel source.
This new pyrolysis biofuel could be up to 95 per cent less polluting than fossil fuels, say researchers.
Tom Delay, chief executive of the Carbon Trust, said: "Genuinely sustainable biofuel will be critical to help reduce the UK’s transport emissions."
The trust has also announced a consortium of British businesses lead by Axion Energy, which hope to create its first biofuel from grass cuttings by 2014.