Cardiff Council has unveiled plans to invest £30 million in the city's transport system, including free bike hire and improved cycle lanes.
The proposals aim to make the capital an example of a green travel system by encouraging more commuters to travel by bike, which could lead to an increase in cyclists taking out bike insurance.
Free buses will also be used to transport people around the city centre and Cardiff Bay, while better bus lanes will cut travelling times as part of a series of measures to improve congestion.
A new park-and-ride service in the eastern suburb of Pentwyn will be created as well as new cycling and walking routes throughout the city, including the busy High Street/St Mary Street strip which will be pedestrianised.
Deputy first minister Ieuan Wyn Jones said: "Cardiff has been chosen as the first region to benefit from this substantial investment to create a sustainable urban transport system."
He added that commuter levels in and around Cardiff had increased significantly over the past few years so the new initiatives would tackle the growing congestion.
The improvements are being paid for by the Assembly Government and Cardiff Council and, if successful, similar schemes will be introduced in other cities.
© Press Association 2009