The government has awarded a Welsh company a grant of more than £450,000 through the Carbon Trust, in order to develop organic light-emitting diode (OLED) technology.
Lomox Limited has been given the cash to develop the bendable flat-panel screens, which use a small amount of power and may replace conventional lighting in the future according to experts.
Director of innovations at the Carbon Trust Mark Williamson pointed out that the organisation is on the look-out for new devices and advances that can reduce emissions, as well as being commercially successful.
He said: "Lighting is a major producer of carbon emissions. This technology has the potential to produce ultra-efficient lighting for a wide range of applications, tapping into a huge global market."
It has been suggested that OLEDs, which Lomox claims are 2.5 times more energy-efficient than current energy-saving bulbs, could be used to produce glowing wallpaper.
One new product set to feature such lighting is an AT&T mobile phone due to be released in 2010, which has an OLED screen.