Ready for Take Off: How Sustainable Aviation Fuel Will Propel Airlines to Net Zero
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.
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.
This document does not relate to any financial or investment product or service and does not constitute or form part of any offer to sell, or any solicitation of any offer to subscribe or interests and the information provided is intended to be general in nature only. This should not form the basis of, or be relied upon for the purpose of, any investment decision. This document is not available to retail investors as defined under local laws.
This document has been prepared without taking into account any person's objectives, financial situation or needs. Any person receiving the information in this document should consider the appropriateness of the information, in light of their own objectives, financial situation or needs before acting.
This document is provided to you on the basis that it should not be relied upon for any purpose other than information and discussion. The document has not been independently verified. No reliance may be placed for any purpose on the document or its accuracy, fairness, correctness, or completeness. Neither Whitehelm nor any of its related bodies corporates, associates and employees shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of the document or otherwise in connection with the presentation.