OTTAWA Canada is investing C$350 million ($265 million) to help fund efforts to make the aerospace industry more environmentally sustainable, Innovation Minister Francois-Philippe Champagne said on Monday.

The focus will be on hybrid and alternative propulsion, aircraft systems, the transition to alternative fuels, and aircraft support infrastructure, he said in a statement.

"(This) ... will help drive and accelerate the green industrial transformation of Canada's aerospace industry, generating high-value jobs while strengthening supply chains and supporting the transition to a net-zero economy," he said.

Earlier this month, global airlines called for broad co-operation to reach "very tough" emission targets. Aviation, which produces around 2% of the world's emissions, is considered one of the hardest sectors to decarbonise.

The C$350 million includes a C$49 million aerospace innovation investment announced in 2019.

Airbus said in 2021 it was working on hybrid-electric propulsion among the options for reducing jetliner emissions. It has pledged to introduce the first hydrogen-powered commercial plane in 2035.

In 2019, Vancouver-based seaplane operator Harbour Air carried out the world's first fully electric, commercial flight.

($1 = 1.3202 Canadian dollars)

(Reporting by David Ljunggren; editing by Jonathan Oatis)