Japan will subsidize hydrogen fuel cell systems and other equipment to the tune of 30.6 billion yen ($205 million) in support of the development of components for electric aircraft with reduced carbon dioxide (CO2) emissions.

The trade ministry is expected to present the policy to a working group of the ministry’s council.

The government will allocate 17.3 billion yen for the development of hydrogen fuel cell systems for aircraft, and 13.3 billion yen for the development of fuel-efficient engine control systems.

The move is part of Japan’s efforts to reduce its greenhouse gas emissions and achieve carbon neutrality by 2050. Hydrogen fuel cell technology is seen as a promising way to decarbonize the aviation industry, which is a major contributor to climate change.

The Japanese government’s subsidy program is expected to accelerate the development of hydrogen fuel cell systems and other components for electric aircraft. This could lead to the commercialization of electric aircraft in the near future, which would have a significant impact on the aviation industry and help to reduce global CO2 emissions.