Sustainability targets in question after Air New Zealand backtracks

Air New Zealand will back away from its 2030 interim sustainability targets, citing a “challenging” time amid low sustainable aviation fuel feedstocks, limited availability of new aircraft, the high cost of alternative fuels and lack of a regulatory framework. [caption id="attachment_81033" align="alignright" width="400"] (Courtesy/Air New Zealand)[/caption] As pressure increases in the aviation industry to reach net zero by 2050 — a target set by IATA in 2021 — will major carriers follow Air New Zealand ’s lead? Southwest Airlines said it expects to surpass its 2025 sustainability targets and has no plans to revise interim goals. “Southwest does not plan to change or pull back from our sustainability goals,” a Southwest spokesperson told Air Cargo Next .” We are on track to meet or exceed our 2025 goals on saving fuel and reducing single-use plastics from inflight service. “Like the rest of the airline industry, fleet renewal and sustainable aviation fuel remain dependencies to reach our interim 2030 and 2035 carbon emissions intensity reduction targets and ultimately net-zero carbon emissions by 2050,” the spokesperson said. Numerous carriers did not respond to requests for comment from Air Cargo Next about shifting sustainability targets. But should the industry reevaluate its sustainability strategy ? “It is possible [Air New Zealand] may need to retain its existing fleet for longer than planned due to global manufacturing and supply chain issues that could potentially slow the introduction of newer, more fuel-efficient aircraft into the fleet,” the airline’s Chief Executive Greg Foran said in a July 29 statement. “As such and given so many levers needed to meet the target are outside our control, the decision has been made to retract the 2030 target and withdraw from the SBTi [science-based target initiatives] network immediately.” The airline had said it would aim to reduce its carbon emissions by 28.9% by 2030. Alternative fuels The aviation industry accounts for 3% of the world’s total emissions , according to IATA. Sustainable aviation fuel (SAF) is considered the most reliable way to remove greenhouse gas emissions from the industry. SAF is about twice the cost of traditional jet fuel and its feedstocks, mainly derived from waste products like unsalable animal fats, used cooking oil, agricultural residues and human waste, remain scarce. Feedstock scarcity contrasts sharply with the growth seen in the aviation industry. “While the 2050 net-zero deadline is an important goal for the industry, it may be overly ambitious . So, the current challenges with SAF feedstocks highlight the need for a more flexible and adaptive approach,” Brandon Fried , executive director at the Airforwarders Association , told Air Cargo Next . “Re-evaluating interim targets and exploring additional pathways to reduce emissions might be necessary to stay on track for the ultimate 2050 goal.” Airlines should also diversify sustainability methods within their control, Fried said. Beyond ramping up SAF production, the industry should focus on enhancing fuel efficiency, adopting new aircraft technologies and optimizing flight operations to reduce emissions, he said. “Investing in carbon offset programs and exploring alternative energy sources, such as electric and hydrogen-powered aircraft, will also be crucial,” Fried said. “It is important to note that most of the current aircraft engine technology cannot run on SAF alone yet, so adopting alternative solutions is essential.” Regulatory framework Meanwhile, feedstock challenges, high costs and the need for new aircraft are not the only hurdles airlines face. Governments around the globe are feeling the weight of the net-zero deadline closing in and, in some cases, are imposing mandates for SAF use for as soon as 2025. As a part of the European Commission ’s ReFuelEU campaign, a July 2021 legislative proposal to incrementally decarbonize aviation by 2050, all European Union airports are mandated to use 2% SAF beginning next year. “The proposal includes a blending mandate imposed on aviation fuel suppliers, with the obligation for the suppliers to ensure that all aviation fuel supplied to aircraft operators at European Union airports contains a minimum share of SAF, including a minimum share of synthetic fuel,” IATA stated in the organization’s EU and U.S. SAF policy fact sheet, updated in July. Without sufficient government support, these mandates may be challenging to meet, Fried said. “Airlines will need to adopt a multifaceted approach to meet upcoming requirements,” he said. “This includes maximizing the use of available SAF, investing in long-term contracts to secure future supplies and implementing operational efficiencies to reduce overall fuel consumption. Collaboration with the government to accelerate SAF production and develop alternative strategies for emissions reduction will also be vital.” The United States also has enacted several sustainab ility initiatives for the industry, including the: California Low Carbon Fuel Standard: The policy would decrease the carbon density of the state’s transportation fuels and put a value on carbon reduction generated from renewable fuels, including SAF. U.S. Renewable Fuel Standard: This proposal focuses on renewable fuel for ground transportation, requiring a minimum amount of renewable fuel on an annual basis, increasing incrementally over time. U.S. Sustainable Skies Act: The U.S. Congress introduced the act in May 2021 to boost incentives to use SAF by providing credits to airlines. Biden administration SAF policies include a proposed SAF tax credit that aims to cut costs and rapidly scale domestic production of SAF, continuous funding opportunities to support SAF projects and fuel producers, the SAF Grand Challenge to ramp up domestic production of SAF, and closely working with international partners to support the global scale up and availability of SAF. Global production of SAF is expected to triple in 2024 to 1.9 billion liters, according to IATA. This is less than 1% of the 450 billion liters needed to reach net zero, according to TIACA . Current production is “a drop in the bucket, and governments need to step in, because really, the path to carbon neutralization is sustainable aviation fuels,” Fried said. The industry “needs the refining capability,” he said. “Who's going to build that? You can't expect industry just to do it unless there is a compelling business case for it. So, governments need to step up. They need to be providing adequate incentives, and they need to be providing financial assistance to do this.”

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