GENEVA -(Dow Jones)- Some of the world's biggest airplane manufacturers agreed Thursday to combine efforts in pushing for the development of biofuels for aircraft, as pressure increases on the industry to reduce greenhouse gas emissions. In a joint statement, Airbus, a unit of European Aeronautic Defence & Space Co. (EAD.FR), Boeing Co. (BA) and Embraer SA (EMBR3.BR) agreed to "seek collaborative opportunities to speak in unity to government, biofuel producers and other key stakeholders to support, promote and accelerate the availability of sustainable new jet fuel sources." Biofuels are considered one of the best ways to lead a reduction in aircraft carbon dioxide emission, as pressure increases on the industry. In the European Union, airlines will now have to pay for emissions of flights taking off and landing in the bloc. This decision has put the EU at odds with major global economies like the U.S. and China, but has revived a debate about the possibility of finding an international deal committing virtually all countries that are members of the International Civil Aviation Organization, the dedicated United Nations body. But the path to a broad use of biofuels in airplanes isn't likely to be straightforward. Biofuels can already be used for aviation, but huge investment will be needed to boost production scale, which is still too small to make the fuels an economically viable alternative. The biggest cost for airlines is jet fuel, the price of which tracks crude oil, but biofuels are still far more expensive. Air France-KLM (AF.FR), Deutsche Lufthansa AG (LHA.XE) and United Airlines, a unit of United Continental Holdings Inc. (UAL), are among airlines that have already operated scheduled flights powered by biofuels, and Virgin Atlantic last year said it was working on development with a biofuels producer. Aviation will also have to compete with the auto industry, where biofuels are also considered to be the most straight forward solution to decreasing CO2 emissions. -By Alessandro Torello, Dow Jones Newswires; +32 (0)2 741 14 88; alessandro.torello@dowjones.com
