Ready for Take Off: How Sustainable Aviation Fuel Will Propel Airlines to Net Zero

Sustainable Aviation Fuels

 

Ready for Take Off: How Sustainable Aviation Fuel Will Propel Airlines to Net Zero

Whitehelm Capital

 

On 4 October 2021, the International Air Transport Association (IATA) – the global trade association of airlines whose members comprise 82% of the world’s air traffic – announced their commitment to net zero emissions by 2050.  With the recent COP26, publicly committing to net zero is undeniably in the air.  Building a credible pathway to net zero emissions in less than 30 years is an enormously complicated undertaking for any business, but particularly so for airlines who in 2019 consumed 360 billion litres of fossil-fuels and generated somewhere between 2-2.5% of the world’s carbon emissions.  So how do airlines plan to get there? And just how credible are the proposed pathways to net zero by 2050?

In this feature article, Whitehelm describe the key strategies outlined by the airline industry to reduce carbon emissions.  Whitehelm take a detailed look at sustainable aviation fuel (SAF), the technology slated to do much of the heavy lifting for airlines over the coming decades and the subject of recently announced tax incentives by the Biden Administration.  Whitehelm describe the regulatory changes and policy incentives implemented or under consideration in key jurisdictions.  And of course, Whitehelm consider the ramifications of the decarbonisation of the aviation industry for infrastructure investors.

 

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This material has been prepared by Whitehelm Capital Pty Limited ACN 008 636 717. Whitehelm is the holder of an Australian financial services licence 24434 and is regulated under the laws of Australia. 

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