The public-private partnership will work to develop cleaner and quieter airplanes.
The European Union wants its planes to run clean and quiet, and has started a $2.3 billion research initiative that could deliver the next generation of air travel to the world.
The EU said its Clean Sky project involves 86 organizations from 16 countries, including 15 research centers and 17 universities.
"Clean Sky will address two simple questions. How we fly and what we fly," said Ake Svensson, president and CEO of Saab, which builds fighter jets and defense and aerospace equipment in addition to cars and trucks.
"The carbon footprint aviation leaves behind is seen as not being acceptable and Clean Sky is an excellent way of addressing the challenges we face in developing more sustainable aviation."
The EU said funding for the program would be split between the EU and industry.
By 2020, Clean Sky hopes hopes to cut emissions of carbon dioxide by 50 percent, nitrogen oxide by 80 percent and noise pollution by 50 percent.
The group also plans to set up an eco‑friendly lifecycle for products, covering the design, manufacture, maintenance, and scrapping and recycling.
The EU said Clean Sky would look at trying to improve areas in the engine as well as overall aircraft design, with a technology evaluator analyzing the results, from the experimental phase to in‑flight demonstrations.
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