<article><p class="lead">The French government today said it will invest €1.5bn ($1.7bn) over three years in research and development of new technologies in the aviation sector. It aims to have the first emissions-free aircraft by 2035, 15 years earlier than it originally envisaged. </p><p>This is part of a €15bn ($16.9bn) aid package for the French aviation industry, which has been severely affected by the Covid-19 pandemic.</p><p>The country's council for civil aeronautic research (CORAC) will receive €250mn ($281mn) to accelerate construction of the first emissions-free aircraft, with a goal of having a prototype ready between 2026 and 2028, and to research the use of hydrogen as alternative fuel. </p><p>The government previously said it will loan €7bn to Air France, contingent to the company presenting a plan for reducing CO2 emissions and transforming its fleet to be less polluting. Air France–KLM's passenger traffic <a href="https://direct.argusmedia.com/newsandanalysis/article/2095090">fell by 57pc year on year in March</a>, as a result of "progressive extensions of capacity reductions" it imposed in reaction to the Covid-19 pandemic. The firm expects that passenger demand <a href="https://direct.argusmedia.com/newsandanalysis/article/2103292">will not recover</a> for several years and anticipates a structural capacity reduction of at least 20pc next year, compared with 2019 levels.</p><p>Earlier this year, the French government said it aimed to reduce the country's reliance on conventional aviation fuels by increasing use of biojet to 2pc of the overall by 2025, to 5pc by 2030 and to 50pc in 2050. Used cooking oil (UCO) and forestry residues are the most viable feedstocks for this. Air France, aircraft manufacturer Airbus and engine maker Safran tentatively welcomed the government's proposal in January.</p><p>France, the Netherlands and Sweden have called for an <a href="https://direct.argusmedia.com/newsandanalysis/article/1927263">EU-wide carbon tax on aviation</a> and pledged to form a "coalition of the willing" to launch their own policies if the bloc fails to take action.</p><p class="bylines">By Giulia Squadrin</p></article>
