This month world leaders, organizations, and media is gathering in Egypt for COP27, the United Nations climate conference responsible in catalyzing nations on in their efforts to deal with climate change. Two key areas on the agenda are trying to keep alive the Paris goal of limiting warming to 1.5ºC from pre-industrial levels and the concern of finance and puts climate compensation on agenda for first time.
When addressing the aviation sector the commitment of Net zero by 2050, by the international air industry at the ICAO (International Civil Aviation Organization) meeting in October 2022 with a clear goal and timeline may help dynamizing the efforts
With increase in fuel rates, demands directly impacted by weaker consumer spending, cost increase, will be a challenge for the aviation sector, financially. When profitability is challenged by operating environment, and less funds available to make amendments with the carbon footprint of flying and addressing climate change may appear to move down the list
Despite many challenges and adversities, we are also witnessing several industry players becoming more outspoken their net zero activities to address climate change and demonstrate the engagement
Route to Net Zero
Commercial aviation is continuing to make advances to improve fuel efficiency, a key factor for aviation’s carbon footprint. Still, getting to net zero will require improvements in operations and disruptive technologies such as electric and hydrogen powered aircraft and fuels obtained from renewable sources.
It is estimated that carbon neutral growth through to 2030 may require US$40-$50 billion in funding annually, and about US$175 billion would be required through to 2050, of which 80-90% may turn to SAF production. With the question of how to finance net zero high on the agenda for COP27, government investment in SAF production and providing incentives will be an important topic for the industry