Air New Zealand’s ditching of 2030 sustainability targets won’t have ‘domino effect’

Although Air New Zealand backed away from its 2030 sustainability targets, some scientists and fuel-makers say it is an airline-specific issue that will not have a lasting “domino effect” on the industry. [caption id="attachment_57132194" align="alignright" width="300"] (Courtesy/Air New Zealand)[/caption] In late July, Air New Zealand said it would drop its 2030 science-based targets initiative (SBTi), which was to achieve a 28.9% carbon reduction from the airline’s baseline emissions in 2019, according to Air New Zealand. Due to ongoing challenges outside the airline’s control, including limited availability of sustainable aviation fuel (SAF), delivery delays of new aircraft and cost concerns, Air New Zealand scrapped its initial target without specifying a backup plan. While SAF is accepted as the most efficient way to decarbonize the aviation industry , demand for it outweighs supply and it costs about twice as much as traditional jet fuel. “It’s not so much the availability of SAF feedstock, but rather the availability of SAF fuel at a price point that the airlines and their customers can bear,” John Dees , senior decarbonization scientist at research company Carbon Direct , told Air Cargo Next . “For example, in markets where SAF is mandated, airlines are proposing surcharges to support the additional cost of buying SAF,” he said. “In markets where climate ambition is voluntary, it is more challenging for airlines to bear the cost of SAF alone. “I would highlight that SAF is an important piece but not the only reason airlines are anxious about near-term targets,” he said. “Other decarbonization options like fleet renewal to more efficient aircraft are also proving to be a challenge over short time [constraints].” Government steps in Because SAF is relatively new to the market — IATA projects that SAF production will triple to 1.9 billion liters this year, or about 1% of what is needed to reach net zero by 2050 — near-term sustainability targets were always going to be challenging , Dees said. “ This is where policy comes in ,” he said. “Solar and wind were not cheap in the early days either. To mobilize new feedstocks and get new technologies off the ground, countries have taken different approaches. In Europe and the U.K., SAF mandates will hopefully send a strong demand signal as there is a requirement to buy SAF. “The U.S. has gone more in the direction of tax incentives and market mechanisms to offset the costs of production,” Dees said. “But in a voluntary market environment, SAF will likely require more policy certainty and long-term support to make SAF affordable while supply grows and new technologies and supply chains are optimized.” Still, SAF will play a crucial role in reaching the 2050 deadline and major carriers around the globe won’t shy away from their commitments, Callum Stewart , marketing communications executive at U.K.-based SAF-maker Firefly Green Fuels , told Air Cargo Next . Firefly Green Fuels produces SAF from human waste , a feedstock source that remains plentiful, he said. “We don't see this as a 'first domino to fall' type situation however, most likely it's a decision born from a set of circumstances specific to that airline,” Stewart said. “When you zoom out and look at the industry more widely, what you see is a gargantuan effort on all sides to fast-track SAF and other climate solutions in pursuit of net zero.” Air New Zealand said it was still onboard to hit its 2050 net-zero targets. “Our work to transition away from fossil fuels continues, as does our advocacy for the global and domestic regulatory and policy settings that will help facilitate Air New Zealand, and the wider aviation system in New Zealand, to do its part to mitigate climate change risks,” Therese Walsh , Air New Zealand chairperson, said in a July 29 release from the carrier.

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