The air industry may still be at loggerheads with the European Commission (EC) over its plans to include aviation in the European emissions trading scheme, but that did not stop the Commission announcing yesterday that it is to increase support for airlines' attempts to cut carbon emissions by ploughing €217m (£151m) into various aviation R&D projects.

The investment, which forms part of the EU's Seventh Framework Programme for Research and is the first chunk of a €2.1bn aeronautics fund that is scheduled to be invested by 2013, will primarily focus on projects designed to limit the environmental impact of air travel.

"Research holds the key to many of the challenges we face in today's world, including how to make air transport safer, greener, quieter and more efficient, " said Janez Potočnik, European commissioner for science and research. "The projects selected from the latest round of proposals all address one or other of these vital issues."

The largest investment will see the EC plough €40m into Airbus' Maaximus project, which aims to cut carbon emissions by reducing the weight of aircraft fuselages by 10 per cent, while a further €25m will be invested in Rolls-Royce's Dream project to develop new open contra-rotating rotors capable of cutting carbon emissions by seven per cent and reducing engine noise.

The commission said 36 projects had been selected by independent experts for funding and are now subject to final contract negotiations between the Commission and the project teams.

The announcement was made on the same day as the EC also unveiled a major package of measures designed to improve the efficiency and environmental credentials of freight transport.

Jacques Barrot, Commission vice-president with special responsibility for transport, said that the new action plan would aim to improve integration between different forms of freight transport and better promote more sustainable forms of transport such as rail and inland waterways.

"The integration of these modes of transport into efficient logistic chains is essential in order to reconcile the economic efficiency and long-term development of transport," he added.

Under the proposals, the EC plans to implement a number of initiatives that will give freight priority across Europe's rail network, simplify administrative procedures for maritime transport within the EU, and set up "green corridors" for the fast and sustainable long-distance freight transport.

The EC said that freight transport is responsible for eight per cent of all carbon emissions and with the volume of goods transported in Europe expected to increase by 50 per cent between 2000 and 2020, it is essential that a more environmentally sustainable freight network is developed if Europe is to meet its emission reduction targets.