A share of £6 million has been awarded to 10 companies searching for solutions to plastic pollution.
The new product ideas include microbeads made from plant material, packaging created from seaweed and clothes which stretch as a baby grows.
Sky Ocean Ventures has teamed up with the government to invest in firms which are working on reducing plastic waste.
Business minister Lord Duncan said: "We've seen the ocean is full of plastic so want we want to make sure is it's bio-degradable... whatever we're using is decaying gently into the soil and returning to nature.
"For so long we've been looking at a hydro-carbon world, now we've got to look at a much more carbon neutral world so it's money put in to encourage thinking and new ideas.
"Once we've got those we start to scale it up and we start to get to net-zero by 2050."
There will be further opportunities for other companies with bold ideas to receive some of the funding.