Land Rover customers are to pay up to £160 extra to help supply eco-friendly cooking stoves to schools in India and low-energy street lighting in the Marshall Islands.
The cost of the company's new CO2 Offset Programme, aimed at helping to reduce greenhouse gases in the atmosphere, will be added to showroom price of Land Rovers from next year.
The amount customers pay will be based on certified CO2 emissions produced by their cars over a distance of 45,000 miles.
Depending on what model they buy, new owners will fork out between £85 and £165.
And the Solihull off-road specialist believes they will be happy to pay.
"Research has shown that Land Rover customers are prepared to play an active role in tackling climate change issues," a company spokesman said.
The Offset Programme, which was announced at the British International Motor Show in London, is being run by Land Rover in partnership with Climate Care, an Oxford-based company specialising in carbon reduction schemes.
The pilot scheme will run to the end of 2008 and it is estimated that it will offset more than two million tonnes of C02, equivalent to that generated by 125,000 homes.
Money raised from the higher prices charged to customers by Land Rover will be spent by Climate Care on a range of carbon reduction projects throughout the world.
They include installing low-energy street lights in South Africa and on islands in the Pacific, and supplying Indian schools with cooking stoves powered by renewable energy.
Land Rover's project is separate to that announced by its parent group, Ford, earlier this week which will see the world's third biggest carmaker spend £1 billion on developing a new generation of low-emission, fuel-efficient vehicles at three R&D centres in Britain including Gaydon and Whitley in the West Midlands.
Land Rover has been keen to boost its "green" credentials ever since it came under attack by campaigners who claim its big "gas-guzzling" off-roaders are harming the climate.
Protests reached a pitch in May last year when Green-peace activists invaded the Lode Lane factory and stopped production by chaining themselves to the assembly line.
Others shackled themselves to Land Rovers outside a dealership and called company bosses "climate criminals".
But the company, which employs 10,000 people and supports a further 50,000 supply chain jobs and which has been enjoying record sales, stresses that each new model it brings out has lower emission levels and higher fuel consumption figures than its predecessor.
Emissions from the massive Solihull plant have also been cut by 30 per cent since 1997, Land Rover says.
"This announcement is part of a multi-stage and ongoing approach by Land Rover to environmental care and sustainability," managing director Phil Popham said.
"Our CO2 offset programme is the second demonstration from Land Rover in five months that it is helping to minimise the impact of its manufacturing processes and vehicles on the environment.
"This industry leading initiative follows hard on the heels of our Land-e technological exhibit which showcases innovative hybrid electric powertrains and biofuel capability - real world technology which will be seen on Land Rover production vehicles of the future."
Climate Care director Mike Mason said: "Land Rover recognise that climate change is a serious threat to the planet.
"Climate Care is pleased the company has taken this initiative to deal with emissions in the short term whilst stepping up their efforts to tackle the longer term challenges.
"We believe this is the first time a programme of such scope and vision has been launched and we hope it sets a benchmark for others."