A group of British trade organisations is planning a global initiative in electronic commerce with financial assistance from the European Union and support from partners in Belgium and Spain.

The aim is to create a worldwide framework that will enable companies to deal electronically, secure in the knowledge that their trading partner's probity is guaranteed.

The Alliance for Electronic Business, includes the Confederation of British Industry, the Computing Services and Software Association, the Direct Marketing Association and the Federation of the Electronics Industry.

It has just received confirmation that its e-commerce project, Emeritus, has been awarded ecu 330,000 (£235,000) by the EU. The partners say they will be contributing an equivalent amount in staffing to the project.

E-commerce, the buying and selling of goods and services by electronic means, is developing rapidly with the growth of the internet.

The Emeritus project was announced yesterday in Ottawa, Canada, where the Canadian government and the organisation for Economic Co-Operation and Development have organised a conference to discuss an international framework for authentication, consumer protection and taxation.

Ms Barbara Roche, telecommunications minister representing Britain in Ottawa, set out the strategy. The Emeritus project is designed to investigate the conditions in which organisations could be considered "trusted third parties" or trust service providers, authorised to vouch for the integrity of companies wishing to trade electronically - essentially applying a seal of approval to assure counterparts abroad that they can trade with the company with confidence.

The British alliance points out that these organisations will be formed to satisfy local national or specific industry requirements, but will need to co-operate on a global basis.

Meanwhile, British Telecommunications, one of the organisations likely to bid to become a trusted third party, has announced "digital certificates" designed to help individuals and companies carry out transactions securely over the internet. These are electronic credentials that are unique and issued only when a person or organisation has been authenticated by a public certification authority.