Like other countries, China’s civil aviation industry faces difficulties in fundamentally changing its aviation energy mix, which is primarily reliant on fossil jet fuel in the short term, and the large-scale application of deep decarbonisation technologies that balance availability and affordability. In the long term, as the most populous developing country, China has a vast potential demand for civil aviation transport, making the energy transition very challenging. However, a Five-Year Plan is underway for the green development of the industry. Against this backdrop is an insistence by China that the transition must be fair and equitable to developing countries, particularly regarding ICAO’s CORSIA scheme. Dr David Ma, an expert in Chinese civil aviation climate policy, analyses China’s current position.

As global climate issues intensify, countries around the world are formulating their own net-zero roadmaps in accordance with their national conditions. In 2020, China officially announced its climate goals of “striving to peak carbon dioxide emissions by 2030 and to achieve carbon neutrality by 2060”, incorporating climate change response as a national strategy.

In the following years, China issued guidelines and action plans at the national level, while key industries and sectors introduced implementation plans. The civil aviation industry, being a high-energy-consuming and high-emission sector, is one of the key areas that needs focused attention and improvement to achieve China’s “carbon peaking and carbon neutrality” strategic goals.

To address this, the Civil Aviation Administration of China (CAAC) released the ‘14th Five-Year Plan for Green Development of Civil Aviation’ in 2022, proposing the vision for green development by 2035, including a well-established green low-carbon circular development system, achieving carbon-neutral growth in air transport, and making green civil aviation a distinguished profile in the industry’s international exchanges, positioning China as an important leader in global civil aviation sustainable development.

Meanwhile, at the 41st Assembly Session of International Civil Aviation Organization (ICAO) held in 2022, the Chinese delegation expressed differing positions on the climate change resolution and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) resolution of agenda item 18. They reserved their stance on the global international aviation 2020 carbon-neutral growth target, the 2050 net-zero carbon target for global international aviation, and the emission reduction mechanisms formed based on these targets, specifically on Articles 6, 7, 9, 17 of the climate change resolution, and the entire text of resolution 18/1 on CORSIA.

The delegation submitted a written reservation to the Secretariat after the meeting, stating they would decide whether and when to withdraw the reservation based on the progress of feasibility analysis of the above targets, the resolution of CORSIA fairness issues and the development of assistance mechanisms for developing countries.

Why does the stance of China’s civil aviation industry on climate change (mainly CORSIA) differ domestically and internationally?

International aviation emissions reduction is an integral part of global climate governance and should adhere to the fundamental principles of global climate governance, particularly the principles of common but differentiated responsibilities, equity and respective capabilities established by the United Nations Framework Convention on Climate Change (UNFCCC) and its Paris Agreement. It should align with the consensus on global climate governance models, allowing countries to independently choose mid-to-long-term goals and implementation pathways best suited to their national conditions.

The historical cumulative emissions of developed countries over nearly 200 years of uncontrolled industrialisation are the primary cause of current climate change. Developed countries have international obligations under the UNFCCC to significantly reduce greenhouse gas emissions ahead of developing and emerging market countries and to provide sufficient financial, technical and capacity-building assistance to developing countries.

China’s CORSIA position

In its working paper A41-WP/468 submitted to ICAO’s 41st Assembly, China explained its proposal to implement CORSIA through Nationally Determined Plans to Implement the CORSIA (NDPIC) and to establish a regular review method for CORSIA (see Figure 1 below). The document argues that to avoid any market distortions caused by CORSIA and to enhance the effectiveness of its implementation, a framework for a NPDIC should be established. This would allow each country to determine its own implementation rules and frameworks, subject to technical review by ICAO. Regarding regular reviews of CORSIA, the document proposes the establishment of a CORSIA Review Working Group, which would develop a set of evaluation metrics based on the guidelines for designing and implementing market-based measures (MBMs) provided in the appendix to resolution A40-18.

Figure 1: Framework of the Nationally Determined Plans To Implement The CORSIA (NDPIC) proposed by China

In working paper A41-WP/469, China elaborated on its stance and suggestions regarding the targets and measures for international aviation carbon emissions reduction. The document contends that the current CORSIA implementation plan and standards, which are based on ICAO’s goal of carbon-neutral growth starting from 2020 (CNG2020), do not conform to international law and the basic principles of global climate governance. It argues that if developed countries do not fulfil their international obligations under the United Nations Framework Convention on Climate Change (UNFCCC) through ICAO, developing countries will be deprived of fair development opportunities. The specific points are as follows:

In contrast to its stance at ICAO, China is cautiously advancing the implementation of market mechanisms domestically. The Civil Aviation Administration of China (CAAC) proposed in its Five-Year Plan in 2022 to “coordinate the construction of domestic and international carbon markets, and promote the establishment of a market-based carbon reduction mechanism for aviation activities.”

China actively promoting SAF

In contrast to CORSIA, China actively promotes SAF. In working paper A41-WP/468, China proposed that “countries refer to relevant ICAO standards or guidelines to determine sustainable aviation fuels and/or low-carbon aviation fuels recognised by their governments.” The Five-Year Plan aims to “promote breakthroughs in the commercial application of sustainable aviation fuels, striving to achieve an annual consumption of more than 20,000 tonnes of sustainable aviation fuels by 2025,” and targets a cumulative SAF consumption of 50,000 tonnes from 2020 to 2025.

It defines SAF as “aviation fuels that meet aviation airworthiness standards and sustainability evaluation standards for aviation fuels.” At the project level, it proposes to accelerate the establishment of a sustainable aviation fuel certification system and fully promote the construction of an airworthiness certification system for sustainable aviation fuels. It aims to conduct regular application demonstrations of sustainable aviation fuels, pilot blended supply models of sustainable aviation fuels at airports with an annual passenger throughput of more than 5 million in regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu, Chongqing and Hainan, and support related airports in accelerating the construction of supporting infrastructure.

The latest news is that the CAAC has identified SAF, the carbon market and efficiency improvements as the three main directions for the green transition of civil aviation in the next five years (2025-2030).

The inconsistency between China’s domestic actions and international commitments on civil aviation’s climate change stance can be found in the Five-Year Plan. It pledges to: “Adhere to independent emission reduction actions, undertake emission reduction responsibilities commensurate with China’s national conditions, the development stage of civil aviation and its capabilities. Fully participate in the global governance process for sustainable development of international civil aviation, uphold the correct view of justice and interests, follow the principles of equity, common but differentiated responsibilities and respective capabilities, strengthen the application of international law, advocate for the establishment of a new international civil aviation emission reduction order with wide participation, independent contributions, mutual learning and benefit sharing, propose more Chinese solutions, promote a balance of obligations and rights, and demonstrate China’s image as a responsible major country.”

From this, several key points can be summarised:

■ Independent emission reductions and independent contributions.
■ The principle of equity and the extension to the principle of common but differentiated responsibilities and respective capabilities.
■ The ‘Chinese solution’.

Accelerating the energy transition

To achieve the goals of “carbon peaking and carbon neutrality”, China’s energy industry is steadfastly accelerating the energy transition, shifting the primary energy source from fossil fuels to non-fossil fuels. As a hard-to-abate sector, the civil aviation industry must make significant adjustments based on China’s macro situation to overcome resource and environmental constraints.

According to roadmaps by IATA, carbon emissions need to be reduced by 1.8 billion tonnes by 2050, with 65% of the emissions reduced through SAF, 13% through new engine propulsion technologies (such as hydrogen), 3% through efficiency improvements and the remainder through carbon capture and storage (11%) and offsets (8%). These measures are reflected in the Five-Year Plan.

Chinese civil aviation has positioned the energy transition, led by SAF, as a crucial node in fostering “new quality productivity” in the latest round of technological and industrial transformation, to achieve a new phase of high-quality development in civil aviation. This also demonstrates the significant role of Chinese civil aviation in building a community with a shared future for mankind. Therefore, China is very proactive and efficient in promoting SAF and other emission reduction measures, recognising that the issue is no longer whether to do it, but how to do it and how to do it well.

In terms of specific actions, due to the differences in national conditions and development stages compared to developed countries in advanced countries and the significant growth needed in the civil aviation transport market in the future, along with the two binding carbon targets of 2030 and 2060 set by the state, China has chosen more pragmatic independent actions, including emission reduction targets and measures. Chinese civil aviation’s vision is that every country should actively contribute to combating climate change but should make independent decisions based on their circumstances, rather than a one-size-fits-all approach.

Principle of equity

In its submitted position papers, China does not oppose the market mechanism of CORSIA, as it has already initiated a national emissions trading system, with civil aviation soon to be included. What Chinese civil aviation disputes is the lack of the principle of equity in CORSIA’s resolution and mechanism design. They often use this metaphor: requiring a growing teenager to diet along with an overweight adult is unfair.

The principle of ‘equity’ emphasises that the responsibilities and measures for emission reductions should consider the historical emissions, economic development levels and emission reduction capabilities of different countries. Developed countries that have competed industrialisation, having accumulated significant historical emissions during their industrialisation process, should bear greater emission reduction responsibilities and provide more financial and technological support. Meanwhile, developing countries need to gradually increase their emission reduction efforts based on their capabilities, promoting sustainable development.

Only on the basis of equity can countries achieve common but differentiated responsibilities and jointly address the severe challenge of global warming. An equitable emission reduction scheme not only promotes international cooperation but also ensures the well-being and environmental sustainability of people worldwide. This climate change principle contrasts with the ‘non-discrimination’ principle of commercial operations in international aviation. However, many developing countries, represented by China, unanimously demand that ICAO reflects the principle of equity in its emission reduction mechanisms.

Unfortunately, only textual confirmation is provided, and it is not reflected in the CORSIA mechanism design. If the climate change principle and aviation operation principle cannot be balanced within the ICAO framework, discrepancies in any emission reduction negotiations and discussions will persist.

China’s anticipated stance at ICAO’s next Assembly

At the ICAO 42nd Assembly in September 2025, China is expected to maintain its established stance, reiterating concerns regarding CORSIA, the implementation paths and standards associated with it, and the 2050 global international aviation carbon-neutrality goal. China believes these targets and pathways are inherently unfair and disadvantageous to developing countries.

Furthermore, because there is currently no intersection between ICAO’s work path and China’s, and with China effectively and confidently taking independent climate actions and involving its national ETS, China will persist with its established stance. The Chinese civil aviation sector will align with the national targets of “achieving carbon peaking by 2030 and carbon neutrality by 2060”, and will not prematurely declare that the aviation industry will achieve carbon neutrality ahead of schedule. Consequently, China will, to a large extent, not join CORSIA’s mandatory implementation phase in 2027.

The ‘Chinese solution’

Chinese civil aviation has made significant progress in responding to climate change and promoting sustainable development. Through the promotion of advanced fuel technologies, optimised route designs and enhanced air traffic management efficiency, China has significantly reduced carbon emissions. Additionally, Chinese civil aviation actively participates in international emission reduction initiatives, sharing experiences with global aviation organisations and counterparts to jointly address global climate challenges. With this series of emission reduction plans, Chinese civil aviation not only demonstrates a firm commitment to reducing carbon dioxide emissions but also strives to achieve significant results through practical actions. These efforts have enabled Chinese civil aviation to confidently push the ‘Chinese solution’, contributing wisdom and strength to the sustainable development of the global aviation industry.

China’s confidence in promoting the ‘Chinese solution’ includes not only technological innovation and operational efficiency improvement but also policy support and international cooperation. Through solid emission reduction actions and comprehensive emission reduction plans, China aims to establish a good international image and demonstrate its responsibility as a major country.

The introduction of the ‘Chinese solution’ will provide valuable experience and a model for the green transition of the global aviation industry, contributing to achieving global carbon neutrality targets. The solution will not only consider ICAO’s resolutions but also reflect its domestic climate change initiative actions, especially as the civil aviation industry is about to be included in the national ETS, which will significantly advance the deployment of CORSIA and SAF, a prospect worth looking forward to.

Photo (H. Goussé, Airbus): Air China A350-900

About the author

David Ma

Dr Xiangshan (David) Ma, who has long worked in China’s civil aviation industry, has been involved in tackling climate change and has experienced the historical transition of China’s civil aviation from energy conservation and emission reduction to carbon neutrality. After leaving the civil aviation industry, he has worked with the Global CCS Institute, Energy Foundation China, GIZ, and FutureCoal (formerly World Coal Association) on CCU/S and energy transition. Currently, he serves as an independent consultant on energy transition and climate change. He can be contacted at maxiangshan.2010@tsinghua.org.cn.

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Views expressed in Commentary op-ed articles do not necessarily represent those of GreenAir.

A new group, the Asia Sustainable Aviation Fuel Association (ASAFA), has been launched in Singapore to help accelerate pan-Asia production and use of low carbon aero fuels. Although the Asia-Pacific region is the largest consolidated market for air travel, accounting for almost 32% of global air passenger journeys, it lags both Europe and the US in SAF momentum. ASAFA brings together a range of participants in the SAF sector, from feedstock producers to policymakers, to collectively address core challenges, including standardising regulatory policies across the region, enhancing market frameworks, and raising awareness of the fuels through initiatives ranging from monthly workshops and webinars to industry white papers. Its aim is to uniformly progress SAF development and deployment in key sub-regions including Southeast Asia, Japan, South Korea and the world’s second and third largest aviation markets, China and India.

ASAFA has been co-founded by four industry specialists, former Airbus executive Fabrice Espinosa, now the new group’s CEO, chemical engineer and sustainable transport consultant Gabriel Ho as Chief Sustainability Officer, fuels and additives specialist Dr Dietmar Posselt as Chief Technology Officer, and Hui Ling Teo, a corporate lawyer specialising in aviation finance, technology and sustainability as the group’s Director of Governance.

Founding member organisations include Korean Air; major SAF user DHL Group; SAF distributor and emergent producer SkyNRG; carbon capture and storage company 1PointFive; environmental certification group Bureau Veritas; used cooking oil collector and distributor PT Green Energi Utama; low carbon-based feed and fuel producer Marquis Energy Global; energy pricing and data supplier Quantum Commodity Intelligence; and the EU-ASEAN Business Council.

Additionally, ASAFA has signed a Memorandum of Understanding with Singapore’s Agency for Science, Technology and Research (A*STAR), which will connect members of the new group with the agency’s research institutes to help develop and implement advanced SAF technologies.

“We are placing Asia at the heart of our efforts by driving policies that resolve market inefficiencies, attract investments and establish SAF as a viable decarbonisation option for the aviation industry, making Asia a leader in SAF for net zero aviation,” explained Espinosa, a former GM for Airbus in Hong Kong, Head of Country for the company in Korea, and ex-Chairman of the Aerospace and Defence Committee of the European Chamber of Commerce in Korea.

The new group plans to develop “a collaborative ecosystem addressing the SAF value chain’s core challenges,” bringing together stakeholders ranging from feedstock providers to technology licensors, fuel aggregators, biofuel producers, airlines, investors and policy makers.

SAF development is gradually edging up across the Asia-Pacific region but initiatives are disparate and disjointed.

The world’s largest SAF production facility is operated in Singapore by global renewable energy group Neste, with capacity to produce 1 million tons per year from waste fats, oils and greases.

Some of its product has been used in Singapore, which will introduce a 1% SAF blending mandate from 2026, and plans to increase to 3-5% by 2030, while Japan and New Zealand are among other markets to import early supplies from there.

But much of Neste’s Singapore-made SAF is initially destined for Europe and North America, where demand for the fuel is already high and increasing.

Japan is progressing multiple SAF production projects ahead of a 10% blending mandate from 2030, while other projects are planned, being studied, or are underway in a range of markets across Asia and the Pacific including China, India, Thailand, Vietnam, Australia and New Zealand.

In Malaysia, the government recently announced contentious plans for the state-owned energy company Petronas to develop SAF from palm oil waste, despite bans on palm oil products in key markets including Europe.

And the Asia Development Bank has partnered with local stakeholders in the Pacific island-nation of Fiji for a feasibility study into SAF production from sugar cane.

“ASAFA’s engagement extends beyond policy reform to enhancing market frameworks that support SAF development,” said the new advocacy group.

“Through dynamic working groups comprising industry and government stakeholders, ASAFA will identify market gaps, align interests and implement measures to boost SAF accessibility and economic feasibility across Asia.

“In addition to its work on policy and market structure, ASAFA will seek to increase public understanding of SAF’s impact through tailored outreach efforts, creating a well-informed support base in the broader community.”

In many markets, a key benefit of SAF production will also be broader economic development and jobs through the conversion of local waste, particularly crop and forestry discards, providing not just recycling into alternative fuels but also a boost for the agricultural sector.

Top photo: Fabrice Espinosa, CEO of ASAFA

Bottom photo: ASAFA founders Gabriel Ho, Dietmar Posselt, Hui Ling Teo and Fabrice Espinosa at the official launch in Singapore

(Both photos: Edwin Koo for ASAFA)

Editor’s note: Hui Ling Teo of ASAFA will be speaking at the Aviation Carbon 2024 conference in London on November 25/26

Tony Harrington

Correspondent

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A feasibility study jointly conducted by Air New Zealand and US-based waste-to-fuel developer LanzaJet has concluded that up to 25% of New Zealand’s domestic aviation fuel needs could be met using sustainable aviation fuel produced locally using woody waste residue as a feedstock. The SAF would be produced through a two-stage process, initially converting the wood to ethanol using the CirculAir carbon recycling technology developed by LanzaJet and its sibling, LanzaTech, then using LanzaJet’s alcohol-to-jet (AtJ) pathway to transform the ethanol to SAF. The airline’s Chief Sustainability and Corporate Affairs Officer, Kiri Hannifin, said the findings were “very positive for a country that is heavily reliant on long-haul aviation and trade and currently imports 100% of its jet fuel.” The NZ study result closely followed the announcement of a carbon-to-SAF partnership between LanzaTech and emerging Australian SAF producer Wagner Sustainable Fuels, and another in Japan between LanzaTech and the SEKISUI Chemical Company to convert municipal and industrial waste to ethanol then SAF.

The New Zealand study was co-funded by the airline and its majority shareholder, the New Zealand government, supported by Scion, a Crown research institute focused on forestry and wood products; fuel and infrastructure company Z Energy; and Wood Beca, a project engineering business specialising in oil, gas and wood, to explore opportunities for local production of non-fossil fuels for aviation.

Announcement of the report’s preliminary conclusions followed a contentious decision by the airline to scrap its 2030 carbon emissions reduction targets and withdraw from the Science Based Targets initiative (SBTi), citing challenges to the availability of new, lower-emission aircraft types and alternative fuels, and support from governments and regulators for decarbonisation initiatives.

“Alternative jet fuel such as SAF is currently the only real tool available to address carbon emissions from long-haul aviation, so it’s crucial for connecting New Zealanders, tourists and exporters with the rest of the world,” said Hannifin.

“There is already significant international momentum and, in our view, New Zealand shouldn’t get left too far behind, or we risk seeing the flow of capital go elsewhere, or our valuable raw materials being swooped up by other markets for their own SAF.

“The right settings and regulatory environment will be important as New Zealand considers homegrown SAF because it’s the only way to secure the necessary global investment.”

LanzaJet CEO Jimmy Samartzis welcomed initial results from the feasibility study and said a second phase was now underway to investigate the potential for household and commercial waste to also be used as fuel feedstock.

“Building a new industry requires developing a broad ecosystem for SAF in New Zealand, anchored in technology and supported by policy, capital and demand to help attract funding and make it at a price airlines can afford,” said Samartzis.

CirculAir, the SAF production approach assessed in the study, combines the technologies of LanzaTech and LanzaJet to convert waste carbon into SAF.

“The process starts with LanzaTech’s carbon recycling technology which, in this case, converts gasified forestry residues into ethanol. LanzaJet then converts that into SAF using its proprietary and industry-leading alcohol-to-jet (AtJ) technology,” explained Samartzis.

“Turning woody biomass into SAF is technically possible in New Zealand and with the right settings, is an industry that can get started fairly quickly. We look forward to completing additional analysis into what other feedstocks, such as municipal household and commercial waste, could be used to make domestic SAF production an even more attractive option.”  

Soon before the conclusions were announced from the first phase of the New Zealand study, LanzaTech and LanzaJet signed an agreement to test their CirculAir carbon-to-SAF technology at ‘The Project,’ the Brisbane SAF refinery of Wagner Sustainable Fuels.

The first stage of this process uses LanzaTech’s carbon recycling technology to convert industrial emissions or municipal solid waste into ethanol, which is then transformed into drop-in SAF using LanzaJet’s AtJ technology.

The CirculAir platform is designed to unlock carbon from a multitude of waste-based resources, providing flexibility for feedstock conversion.

“The combination of LanzaJet’s leading SAF solution with the front end of LanzaTech’s proven and commercialised carbon recycling technology makes it possible to create a domestic SAF supply in Australia using local renewable waste sources, further supporting the country’s energy security while also working to protect its natural environment,” said LanzaJet’s Samartzis.

Matt Doyle, CEO of Wagner Sustainable Fuels, said the CirculAir partnership with LanzaTech and LanzaJet would advance his company’s Brisbane refinery and accelerate the development of a SAF industry in Australia, where multiple projects are now being scoped or progressing towards final investment decision.

“Together, these proven technologies can help us realise Australia’s first, fully integrated SAF production facility and provide a path to producing domestic fuel at scale,” he said.

The Wagner Project has also secured backing from both Boeing and the Queensland state government.

Earlier this year, LanzaJet also signed a licensing agreement with Jet Zero Australia, which is developing an AtJ SAF plant in Townsville, North Queensland, and will use agricultural biomass including sugar cane waste as a feedstock for the fuel.

Jet Zero, whose investors include Qantas, Airbus and Japanese petroleum group Idemitsu Kosan, plans to produce up to 102 million litres of SAF and 10 million litres of renewable diesel per year. It is targeting production from 2027. 

LanzaTech has also partnered with Japan’s SEKISUI Chemical Company to jointly develop a platform which transforms syngas from municipal and industrial solid waste into ethanol, and then into products including sustainable aviation fuel.

Under a master licence agreement, SEKISUI plans to build multiple facilities across Japan, with the first expected to produce 10 to 12 kilotons of ethanol annually for use not only in SAF but also chemicals and materials including packaging and apparel. The deal extends a decade-long partnership between the two companies to divert garbage away from landfill or incineration for recycling as product feedstock.

Japan is active in recycling and decarbonisation and is one of the leading climate action markets in the Asia-Pacific region. Among its initiatives, it has mandated that by 2030 SAF will make up 10% of all fuel used by its domestic airlines and departing international carriers.

The expanded partnership between LanzaTech and SEKISUI follows the successful operation of a pilot plant established in 2017 in Yorii-machi, Saitama, and the completion in 2022 of a demonstration plant in Kuji City, Iwate, with annual capacity to convert approximately 400 tons of municipal solid waste to ethanol for further processing.

Each year, said the companies in their announcement, Japan generates some 56 million tons of combustible waste, which ordinarily would be sent to landfill facilities, “emitting methane, a greenhouse gas 23 times more potent than carbon dioxide,” or incinerated for power generation, emitting embedded carbon into the atmosphere.

Using the LanzaTech technology, unsorted combustible waste is gasified, then converted into ethanol through the use of a microbial catalyst and gas fermentation technology which requires no chemical catalysts, heat or pressure.

“We are pleased to expand our collaboration with longstanding partner LanzaTech, whose waste-to-ethanol technology is converting municipal solid waste into a valuable resource and providing an innovative solution to ending our reliance on fresh fossil fuels,” said Futoshi Kamiwaki, SEKISUI Representative Director and Senior Managing Executive Officer.

LanzaTech CEO Dr Jennifer Holmgren said the extended agreement also progressed her company’s vision for a circular carbon economy.

“We are grateful to SEKISUI for their commitment to scaling carbon recycling across Japan,” said Holmgren, “and for being at the forefront of developing a global blueprint for other countries and businesses to follow on how to access and utilise the carbon locked in local garbage.

“Our continued collaboration with SEKISUI is setting the groundwork for providing municipalities with a platform that reduces waste, captures carbon, generates valuable feedstocks and, importantly, creates jobs.

Photo: Air New Zealand

Tony Harrington

Correspondent

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Airbus is to collaborate with two major airlines, European low-cost operator Wizz Air and full-service Taiwanese international carrier EVA Air, to help each prepare for the imminent introduction of sustainable aviation fuel. The airframer will partner with Wizz Air for SAF-powered trials of Airbus A321neo jets on two key routes, from Barcelona and Brussels Charleroi to the airline’s hub in Budapest, in readiness for the introduction next year of the SAF usage mandates at EU airports under the ReFuelEU plan. Airbus will also work with EVA Air for the next two years to explore multiple ways to help decarbonise the carrier’s flights while also preparing for the introduction of SAF. Their sustainability partnership was announced in Taipei during an event to mark the airline’s order for 33 new Airbus jets.

Like a growing number of carriers, Wizz Air has committed that SAF will comprise 10% of its total jet fuel use by 2030. Its test flights with Airbus, to occur before the end of this year, are designed to help operationally prepare the airline for the EU’s escalating blending mandates, which from next year will require at least 2% of total fuel uplift to be SAF.

Airbus will provide technical guidance and expertise to help maximise the efficient integration of SAF across Wizz Air’s operation while product for the trials will be supplied by Spanish refiner Cepsa and distributed to the departure airports by World Fuel Services, a division of Florida-based energy group World Kinect.

The airline will buy up to 34 metric tons of pure SAF, of which 16 metric tons will be uplifted through blends of up to 5% for the flights from Barcelona-El Prat Airport and 18 metric tons of neat SAF in a 10% blend will be provided at Brussels Charleroi.

The Wizz Air project will be conducted using the mass balancing method, through which SAF use is tracked across an airline’s network and its environmental benefits allocated to specific flights, regardless of where the fuel is physically used, enabling carriers to support SAF production and use globally.

“With this project,” said the airline, “Wizz Air is taking steps to incorporate SAF into its operations, on top of leveraging the fuel efficiency of the Airbus A321neo aircraft, testing the alignment with regulatory frameworks ahead of schedule and working to understand passengers’ awareness of SAF and surrounding policies.”

Yvonne Moynihan, the airline’s Corporate and ESG Officer, said the project demonstrated cross-industry collaboration to reduce aviation’s emissions intensity, while building broader awareness of measures to make air transport more sustainable.

“We are not only testing SAF operations but also gathering insights from our passengers on their awareness of levers to decarbonise aviation,” she said.

Results of the survey will be released publicly, not only to highlight passenger expectations but also to guide the aviation industry in enhancing sustainability efforts.

“Fuel-efficient aircraft and SAF will provide the majority of the emissions reductions our industry needs to make by 2050,” added Julie Kitcher, Airbus’ Chief Sustainability Officer, “which is why working together with partners like Wizz Air to efficiently integrate SAF across airline operations is such an important step.”

Marta Cencillo, Head of Sustainable Aviation for the SAF producer, Cepsa, welcomed the trial flights with WizzAir as “an immediate solution to help decarbonise flights” and “an important initiative to move towards effective emissions reduction ahead of the ReFuelEU mandate.”

The exercise was also a key step in the broader introduction of SAF, added Duncan Storey, World Fuel’s SVP supply and commercial development, EMEA.

“Aligning with the upcoming ReFuelEU aviation requirements is an important milestone in our efforts to expand the availability of sustainable fuels,” he said. “Since 2015, we been actively working to increase the availability of lower-carbon aviation fuels across the globe. Our SAF supply network in Europe includes multiple key locations such as the UK, Germany and France.”

Madrid-based Cepsa is changing its name to Moeve in a phased rollout beginning in November.

“I’m thrilled to announce that a great brand, Cepsa, which has been with us for over 90 years, is transforming and to tell the world that we’re becoming a different type of organisation, Moeve, in which the majority of profits will come from sustainable activities by the end of this decade,” said the company’s CEO, Maarten Wetselaar. “This well-known and collaborative company has rapidly accelerated its transformation over the past two years, reaching multiple milestones outlined in its 2030 Positive Motion strategy. Building on these achievements and those still to come, we are introducing a new brand that reflects our steadfast commitment to leading Europe’s energy transition, particularly in green hydrogen, second-generation biofuels and ultra-fast electric mobility.”

Across the world in Taipei, Taiwan, Airbus inked another sustainability partnership, this time a two-year collaboration with customer airline EVA Air, during an event to celebrate orders by the carrier for 18 long-haul Airbus A350-1000 twinjets and 15 narrowbody A321neo aircraft, which the companies estimate will reduce fuel burn and CO2 emissions by up to 25% compared to earlier model jets.

“The agreement lays the foundation for the two companies to explore over the next 24 months avenues for decarbonisation within EVA Air’s operations, prepare the ecosystem for sustainable aviation fuel adoption and ensure infrastructure readiness,” said the airline.

“These efforts will ensure that we can steadily move towards a net zero future,” added the carrier’s President, Clay Sun.

Airbus Commercial Aircraft CEO Christian Scherer said the planemaker was deepening its collaboration with EVA Air in line with a broader ambition to help decarbonise the aviation sector.

The two companies will study measures needed to prepare for the use of SAF to power commercial flights, as well as establishing procurement processes and managing certification of SAF. Airbus will also evaluate the potential contributions of multiple measures based on EVA’s current and future routes, and its operational practices.

Top image (Airbus): Airbus will partner with Wizz Air for SAF-powered trials of the airline’s A321neo jets

Bottom photo: EVA Air and Airbus mark decarbonisation agreement

Tony Harrington

Correspondent

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The Malaysian government has announced state-owned oil company Petronas will collaborate with major palm oil producers to manufacture sustainable aviation fuel from palm oil waste. The feedstock is contentious in many western countries as development of commercial palm oil plantations often comes at the expense of tropical forests, displacing and endangering wildlife. The Malaysian move, announced in the government’s 2025 federal budget, is part of a broader drive to strengthen the country’s palm oil industry, one of the largest in the world and a key national exporter. Meanwhile, its northern neighbour Thailand is to pump first supplies of SAF to Bangkok’s two main airports, while to the south, Singapore Airlines Group is preparing to receive 500 tonnes of the fuel from Neste’s local refinery. Both the latter SAF consignments were produced from waste oils and fats.

The decision that Petronas would work with palm oil producers to make low emission aviation fuel was announced by Malaysia’s prime minister, Anwar Ibrahim, as he handed down the country’s 2025 financial budget.

But rather than a specific sustainability initiative, the announcement was buried on page 83 of the PM’s budget speech in a section dedicated to strengthening the country’s palm oil sector.

While the volumes, delivery timeframe and prospective users of the palm oil SAF were not disclosed, the PM specifically referenced the Petronas initiative as part of a broader endorsement and defence of the palm oil industry, which in the new fiscal year will also receive incentives totalling 100 million Malaysian ringgit ($23m) to replace ageing, unproductive palm trees with new crops.

The PM also encouraged major palm oil companies to support small adjacent landholders “by supplying the latest seeds and the best fertilisers, as well as helping them achieve compliance with sustainability standards.”

And he announced an allocation of 65 million Malaysian ringgit ($15m) “to counter misconceptions in Europe and enhance the sustainability of palm oil,” but provided no further details of how this campaign would be delivered.

Meanwhile, Malaysia Aviation Group (MAG), parent of Malaysia Airlines, has joined the national CEO Action Network – a coalition focused on sustainability advocacy, capacity building, action and performance. MAG will contribute to the Diversity Equity Inclusion workstream, which aligns with its commitment to IATA’s 25by2025 initiative aimed at improving women’s representation in the aviation sector.

“We are proud to join CAN, focusing on establishing collective commitments to climate action and social stewardship,” commented Datuk Captain Izham Ismail, Group Managing Director of MAG. “This initiative aligns seamlessly with our sustainability ambitions, particularly our decarbonisation goals and our commitment to creating a positive socio-economic impact.”

Across Malaysia’s northern border, Thai energy company Bangchak Corporation is delivering first supplies of blended SAF into the fuel pipeline system supplying Bangkok’s two international airports, Suvarnabhumi and Don Mueang.

The fuel was delivered as part of a pilot programme with Bangkok Aviation Fuel Services and BAFS Pipeline Transportation to help prepare infrastructure for SAF production and use in Thailand, and to help achieve recognition as a renewable energy leader within the broader Southeast Asia region.

“Bangchak has invested over 8.5 billion Thai Baht ($250m) in developing SAF production from used cooking oil through its subsidiary BSGF,” reported the energy company.

“The construction of the SAF production unit at Bangchak Refinery in Phra Khanong, near Bangkok, is progressing as planned, with production expected to commence in early Q2 of 2025 with a capacity of 1 million litres per day.

“This initiative aims to prepare the aviation industry, both domestic and international airlines within the SAF alliance, to support the industry’s goal of achieving net zero greenhouse gas emissions by 2050 in alignment with standards set by the International Civil Aviation Organisation and the International Air Transport Association.”

In Singapore, renewable fuels producer Neste is due this quarter to deliver the second of two 500-tonne consignments of blended SAF to the Changi Airport for use by Singapore Airlines and its low-cost sibling Scoot.

Earlier this year their parent company, Singapore Airlines Group (SIA), purchased 1,000 tonnes of the fuel from Neste’s refinery near the border with Malaysia. During the second quarter, the airlines became the first to receive the waste oil SAF from Neste through the airport’s fuel supply system.

Soon after, a Vietnam Airlines Airbus A321 destined for Hanoi became the first visiting carrier from the Asia-Pacific region to uplift Neste SAF from Changi, followed by a long-haul Emirates Boeing 777-300.  

Neste’s refurbished plant, opened mid last year, is the world’s largest SAF manufacturing facility, capable of producing 1 million tonnes of the fuel per year. As well as supplying the Singapore hub, the facility also produces SAF for export to other markets including North America and Europe, where demand is currently far higher than in the Asia-Pacific region. The Singapore government has decreed that from 2026, at least 1% of the fuel used by each departing flight will need to be SAF, with mandated proportions to increase to between 3% and 5% by 2030.

Photo (Martijn Gijsbertsen): Malaysia Airlines flew an inaugural flight from Amsterdam to Kuala Lumpur in December 2021 with SAF supplied by Neste and Petronas

Tony Harrington

Correspondent

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The governments of 29 countries have agreed at an ICAO-sponsored conference in India to increase cooperation to decarbonise aviation across the Asia-Pacific region. The agreement was one of the key takeaways from the Second Asia Pacific Ministerial Conference on Civil Aviation, which also endorsed commitments to jointly improve aviation security, infrastructure, gender equality and airspace management. “This declaration is a roadmap for the future of aviation in one of the world’s fastest-growing regions,” commented ICAO Council President Salvatore Sciacchitano. The communiqué coincided with the same day announcement of a feasibility study into the production of sustainable aviation fuel in Fiji, one of the smallest APAC nations, but also one of those most at risk from the impacts of climate change. The project is a collaboration between Fiji Airways, the Fiji Sugar Corporation and Lee Enterprises Consulting, with backing from the Asian Development Bank.

The ICAO conference, held in New Delhi, attracted more than 200 delegates from across the region including 12 ministers, eight deputy or vice ministers and 24 directors general responsible for civil aviation, with India’s Minister for Civil Aviation, Shri Kinjarapu Rammohan Naidu elected chairperson of the conference, and Fiji’s deputy PM and Minister for Tourism and Civil Aviation, Viliame Rogoibuli Gavoka elected vice chairperson.

India’s Prime Minister, Narendra Modi, also attended the proclamation of the meeting’s resolutions, designated as the Delhi Declaration. “It demonstrates a collective will to embrace innovation while prioritising safety, security and environmental responsibility,” said Sciacchitano.

Commitments outlined but not detailed in the ICAO announcement included investing in infrastructure to support sustainable growth and emerging aviation concepts, reducing the emissions and other environmental impacts of aviation, and enhancing regional cooperation in air traffic management. As well, to symbolise both cleaner aviation and ICAO’s 80th anniversary, India announced an initiative to plant 80,000 trees.  

Decarbonisation measures, particularly commitments to develop and use SAF are increasing across the Asia-Pacific region, with projects and commitments of various scales in markets including Japan, Singapore, China, Thailand and Australia. But the Fiji SAF study has potential for significantly broader local impact in the Pacific Island nation, which relies heavily on tourism, aviation and sugar cane milling for its livelihood, yet is increasingly at risk from severe weather events and rising sea level.

Backed by funding from the Asian Development Bank, the partnership of the government-controlled Fiji Airways, Fiji Sugar Corporation and Lee Enterprises Consulting will investigate the feasibility of a SAF production and utilisation model in Fiji which combines local agricultural resources and international technical expertise.

The study will explore the possible use of sugar cane and its waste in the local production of ethanol and other energy sources which can be used to develop SAF, and will evaluate the suitability of molasses, sugar, bagasse and biomass as possible feedstocks for the fuel.

In a joint statement, the partners said the project “is poised to position Fiji as a leader in the development, production and use of SAF in the Pacific region, with the potential to showcase a model that can be replicated in other regions.”

It added: “Sugar cane has a significant ability to absorb carbon due to its rapid growth and high biomass production. The CO2 captured during its growth phase contributes to a net reduction in greenhouse gas emissions when the resulting SAF is used in aviation.”

It is also one of the most productive crops in terms of biomass yield produced per hectare of land, providing large volumes of feedstock for use in SAF production, while the crop’s high sugar content can easily be fermented into ethanol, which can then be upgraded to SAF.

Fiji Airways has committed to decarbonising its operations through the use of operational measures, deployment of SAF and other pathways, and recently announced a partnership with US-based Odys Aviation to evaluate that company’s autonomous hybrid-electric freight drones for potential deployment between the nation’s 330 islands.

It has also been accepted as a full member of the oneworld global airline alliance, which has pledged that by 2030, 10% of the fuel used by its member carriers will be SAF.

“This is a landmark project for Fiji and the South Pacific region,” said Peter Seares, the airline’s chief legal and sustainability officer. “The feasibility assessment will lay a foundation  for Fiji’s national airline to meet its sustainability goals while utilising local resources that will help to reinvigorate and transform the domestic sugar industry, create new jobs and improve the lives of Fijians.”

The Fiji Sugar Corporation is the largest sugar milling company in the South Pacific region and a major contributor to the national economy, while Lee Enterprises Consulting (LEC), an international specialist in biofuels and alternative energy, will lead the technological and economic study into transforming sugar-linked waste into alcohol-to-jet SAF via multiple production pathways.

“This collaboration is a testament to the power of partnerships in addressing global challenges such as climate change,” said LEC’s CEO Jason White.  “By bringing together industry leaders and local stakeholders, we are not only advancing the production and use of sustainable aviation fuel but also promoting economic resilience and environmental stewardship in the Pacific.

“LEC has brought together a world-class team of bioenergy industry experts for this project and we are excited to deliver the economic and technical feasibility roadmap for how this important sustainability capability can be realised.”   

In addition to providing funding support and facilitating knowledge transfer between the project partners, the Asian Development Bank will coordinate the project’s implementation, and ensure that all activities meet international sustainability standards and contribute to regional development goals. 

Top photo: Fiji Airways Boeing 737 Max 8 at Canberra

Bottom photo (ICAO): Senior government and ICAO representatives at the Second Asia Pacific Ministerial Conference on Civil Aviation in New Delhi

Tony Harrington

Correspondent

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Global SAF production will be featured at Aviation Carbon 2024

As part of a new Aviation White Paper mapping out the nation’s air transport strategy to 2050, the Australian government has announced a package of measures to help advance production and use of sustainable aviation fuel and other low carbon liquid fuels (LCLF). Central to the government’s sustainable aviation plans are increased research into production pathways for new fuels, consideration of incentives for domestic feedstock and fuel production, and protocols to track and verify the green credentials of SAF and renewable diesel. Neighbouring New Zealand is also exploring measures to help decarbonise aviation as part of stage 2 of its national Emissions Reduction Plan and has sought industry feedback. In a joint response, the airline and airport sectors welcomed the focus on air transport but said the plan lacked concrete steps to develop appropriate policies. They urged the government to work towards regional solutions, specifically by mirroring Australia’s LCLF consultation process with industry.

The Aviation White Paper, ‘Towards 2050’, released by Transport Minister Catherine King, says with Australia’s large landmass, dispersed population and geographical isolation, there are “limited practical substitutes” for air transport in many parts of the country. But it adds that air transport must reduce its carbon emissions as part of the broader national commitment under the Paris Agreement to reduce total domestic greenhouse gas emissions by 43% below 2005 levels by 2030 and says that by early next year Australia is expected to submit a 2035 emissions reduction target.  

“Consultations have confirmed that SAF is currently the only mature mechanism capable of offering meaningful reductions in airline emissions and is the most viable pathway for aviation to meet its emissions reduction obligations out to 2050,” says the White Paper. “Therefore, in the short to medium term, the Australian government is focusing its action on measures to support the supply of SAF, including considering support options aimed at establishing a domestic production industry.”

The government has commited to consult with the aviation industry and community on production incentives and demand-side measures for LCLFs, but specifically excludes blending mandates, arguing that it needs to better understand their likely impact on demand for new fuels, emissions reductions, air ticket prices and regional air operations.

By 2028, it will expand the national Guarantee of Origin Scheme to authenticate the production credentials of new fuels and will align the certification arrangements with international standards.

LCLF production technologies using new feedstock sources will also become eligible for support through the AUD1.7 billion ($1.1bn) Future Made in Australia Innovation Fund, in addition to AUD30 million ($20m) already allocated to support production of SAF and renewable diesel from feedstocks sourced in Australia. Among the potential feedstocks identified by the country’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) in its SAF Roadmap are sugar cane and sorghum, while agricultural and forestry residues including stalks, leaves, husks, woodchips and branches have also been listed as suitable low value products for use as biofuel feedstocks.

Although the White Paper prioritises SAF and LCLF production, it also highlights grants to progress research and development of new low-emission technologies such as electric and hydrogen propulsion, establishment of the National Reconstruction Fund Corporation to help finance projects including renewables and low emissions technologies, and expansion of the Regional Airports Programme to help fund infrastructure that supports the transition to net zero aviation.

“The Australian government recognises the need to provide certainty for the aviation industry,” said Minister King. “Fifteen years after the release of the previous Aviation White Paper, this publication sets out the government’s long-term policy vision to deliver a safe, competitive, sustainable, productive and efficient Australian aviation sector out to 2050.”

In New Zealand, a request by the government for comments on its draft Emissions Reduction Plan 2 (ERP2) has attracted responses including a joint submission from the New Zealand Airports Association (NZAA), Board of Airlines Representatives in New Zealand (BARNZ) and IATA, calling for a more proactive strategy to reduce aviation’s carbon emissions.

“It does not adequately address aviation decarbonisation needs and lacks identification of the required steps to develop an enabling policy framework for this,” says the group, which collectively represents 46 airports, 26 airlines which fly to, from and within New Zealand, and associated businesses including ground handlers, catering providers and waste management companies.

The group urges establishment of a domestic SAF industry, and for the government – led by Prime Minister Christopher Luxon, a former CEO of Air New Zealand – to be actively involved in developing the sector. 

“Government sees its main role for the aviation and maritime sectors as facilitating industry discussions through existing forums, considering regulatory barriers and ensuring New Zealand’s interests are represented appropriately on the international stage,” says the group. “These are important roles, and we support such a focus.

“However, we believe there remains a role for government to also consider the need for robust Public Private Partnership or other appropriate co-investment (for example, the Regional Infrastructure Fund) or incentivisation models to facilitate the development of a domestic SAF production industry, while protecting any relevant Crown investment.

“While we recognise a material proportion of New Zealand’s future SAF requirements will need to come from overseas, appropriate levels of domestic production will not only deliver economic growth and employment opportunities for regional New Zealand but will also help ensure security and resilience in our aviation fuel supplies.

“Appropriate co-investment or other incentivisation models will align economic incentives with the national interest in economic growth and productivity and unlock the private investment at scale necessary for domestic SAF production and the emergence of a credible market in support of climate transition.”

The airports and airlines submission also highlights the recent agreement between the New Zealand and Australian governments to collaborate more closely on measures including climate response and urges the New Zealand government to prioritise consultation with the air transport industry on progressing LCLF policy, mirroring a similar process announced in Australia.

“Work should begin now to evaluate the content of Australia’s consultation documentation, and any New Zealand analysis that would be needed to adapt it to our context,” says the group. “This process would then be informed by Australia’s policy decisions once its consultation is complete, as a basis for New Zealand to either align or diverge from those decisions where this may be appropriate for our context.” 

Tony Harrington

Correspondent

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EcoCeres has partnered with Evos, a major liquids and chemical storage group, to increase supplies of sustainable aviation fuel in Europe. Hong Kong-based renewable fuels producer EcoCeres has just shipped from China 10 million litres of sustainable blending component to the Evos storage facility in Ghent, Belgium, one of Europe’s largest and fastest-growing SAF storage terminals. The HEFA-SPK product, developed from waste fats and oils, was produced at the EcoCeres processing plant in Jiangsu Province, eastern China, which the company says has been recognised by the International Sustainability and Carbon Certification (ISCC) – Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), accreditations which enable sale of the product in Europe. Meanwhile, Denmark’s Topsoe has been selected to support the Holborn renewable fuels complex, which is due to begin operations in Hamburg, Germany, early in 2027, with capacity to produce 220,000 tonnes of SAF and renewable diesel per year.

EcoCeres, which is backed by international investors Bain Capital and Kerogen Capital, produces hydrotreated vegetable oil (HVO) from waste grease and animal fats which can then be processed into SAF. The company’s Zhangjiagang renewable fuel refinery in Jiangsu Province, north of Shanghai, has capacity to produce up to 350,000 tonnes of HVO and SAF per year. A second plant is under construction in Johor, Malaysia, that will produce SAF, HVO and renewable naphtha, and expand the company’s annual production capacity by up to 400,000 tonnes. EcoCeres says it is currently serving a number of international airlines and their jet fuel suppliers directly.

The partnership with Evos integrates the EcoCeres product into Europe’s SAF supply chain at a time of rapidly increasing demand, ahead of the EU’s SAF blending mandate starting next year. Evos is a key infrastructure provider to the renewable fuels sector, with combined storage capacity for 6.4 million cubic metres of liquid energy and chemical supplies at terminals in Ghent, Amsterdam, Rotterdam, Hamburg, Malta and Algeciras, Spain.

In January 2023 the Ghent terminal provided the first delivery of SAF through the NATO Central European Pipeline System (CEPS) to Brussels Airport and is now repurposing infrastructure in Ghent and Amsterdam to help accommodate soaring demand for SAF blending.

“We are thrilled to announce this collaboration with Evos, a well-established player with access to critical EU infrastructure,” said EcoCeres CEO James Ni. “It allows the repurposing of existing infrastructure, securing green jobs and providing our customers with an easy choice between fossil jet fuel and SAF.”

Evos CEO Harry Deans welcomed the collaboration with EcoCeres as part of broader efforts by the energy and aviation sectors to help decarbonise air transport. “Evos is proud to partner with EcoCeres and support the global transition to lower-carbon aviation,” he said. “This is a significant milestone for Evos Ghent and it enables further decarbonisation of the aviation supply chain.”

In Germany, Holborn Europa Raffinerie, an emerging producer of SAF and renewable diesel, has chosen Danish company Topsoe to provide technology to enable the conversion of waste and residue materials to low-carbon fuels.

Holborn, which already produces fuels and heating oils at its Hamburg refinery for that city and other parts of northern Germany, will use Topsoe’s HydroFlex conversion technology to additionally produce up to 220,000 tonnes of SAF and renewable diesel per year from early 2027. It will produce the SAF and HVO within the existing facility.

“Our complex in Hamburg is at the forefront of our commitment to implement the energy transition,” said the refiner’s CEO Lars Bergmann. “As such, it is vital we bring in the best technology to deliver on the high standards and specifications required for the project. Holborn is very pleased to sign this agreement with Topsoe, who are proven market leaders and whose technology is vital for processing our feedstock requirements.”

“To support the energy transition, we need a cleaner long-distance transport sector,” added Elena Scaltritti, Topsoe’s CCO. “A key step in securing this is by increasing production of SAF and renewable diesel. Holborn is spearheading the rollout of SAF in northern Europe through its Hamburg plant and we are proud to be part of this process. We look forward to delivering our technology and continue working with Holborn to accelerate the uptake of SAF in Europe and globally.”

Photo (EcoCeres): The vessel ClearOcean Marauder unloads 10 million litres of SAF to the Evos Ghent terminal

Tony Harrington

Correspondent

• Linkedin

Air New Zealand, which has recently been considering multiple net zero aviation pathways, has surprisingly scrapped its 2030 science-based carbon intensity reduction target, citing challenges to the availability of new aircraft and alternative fuels, and support from governments and regulators for decarbonisation initiatives. The airline’s CEO, Greg Foran, singled out potential delays to the company’s fleet renewal plans as a specific impediment to achieving 2030 targets, and said a new near-term carbon emissions reduction target would be developed to more closely align with the global availability of new aircraft and fuels. The announcement coincided with a joint announcement by the New Zealand and Australian governments to collaborate on the development of sustainable aviation fuel and green hydrogen as part of a broader agreement on sustainable energy and trade between the two nations. To help speed up SAF supply and use, New Zealand aviation companies will be invited to participate in Australia’s Jet Zero Council.

Air New Zealand announced an interim 2030 target on its journey to a 2050 net zero emissions goal in 2022, which was validated by the Science Based Targets initiative (SBTi). It required a 28.9% reduction in carbon intensity by 2030 from a 2019 baseline, equating to a 16.3% reduction in absolute emissions over the period. The airline said at the time it provided a “clear signal of where we need to be by 2030, in order to meet the 2050 goal.”

The airline’s shock decision to axe the target and withdraw from the SBTi was announced in a statement to the New Zealand and Australian stock exchanges, in which the carrier referenced widespread fleet, fuel and policy impediments to meeting its promised decarbonisation targets.

“In recent months, and more so in the last few weeks, it has become apparent that potential delays to our fleet renewal plan pose an additional risk to the target’s achievability,” said Foran. “It is possible the airline 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. 

“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 immediately.”

Although he did not specify which aircraft renewal programmes were impacted, the airline had planned to replace or upgrade its fleet of 23 Q300 turboprop airliners by 2030 and to progress similar plans for its larger and younger fleet of ATR 72 aircraft later in the decade.

Last year, as part of its Mission Next Gen programme to identify future aircraft and propulsion systems, the airline selected partners including US-based Universal Hydrogen, which proposed a system whereby existing aircraft were retrofitted with new hydrogen-electric propulsion systems, and containers of the fuel were loaded directly onto the aircraft they would power, negating the need for ground-based hydrogen fuelling infrastructure. Last month, Universal Hydrogen collapsed after failing to secure urgent funding to progress certification. 

Air New Zealand’s action has flagged concerns that the airline industry is losing confidence in its broader ability to meet climate targets.

“Air New Zealand has been more ambitious, and publicly so, than almost all other airlines in setting out sustainability goals, and that’s very much to its credit,” said Patrick Edmond, Managing Director of European aviation consultancy Altair Advisory. “It’s galling to have to step back from those goals, but that’s also a warning sign for the feasibility of the industry’s overall target. If one of the most committed airlines in the world can’t hit its interim target, how realistic is the 2050 net-zero moonshot, especially as that assumes net zero is compatible with continuing strong worldwide air traffic growth?”

But Air New Zealand’s chair, Dame Therese Walsh, reaffirmed in its advice to the stock exchanges the airline’s continued commitment to achieving its 2050 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.”

In Brisbane, Australia’s Minister for Climate Change and Energy, Chris Bowen, and Treasurer, Dr Jim Chalmers, met with New Zealand’s Climate Change Minister, Simon Watts, and Finance Minister, Nicola Willis, to discuss economic and industrial benefits for both countries associated with the transition to net zero emissions.

Among their resolutions, they agreed to investigate requirements to develop a regional SAF industry, and to review regulatory barriers impeding progress in both countries towards net zero emissions. It was also agreed that New Zealand aviation companies and representatives be invited to join Australia’s Jet Zero Council, established last year.

“A big focus of our discussions was on low-carbon liquid fuel production in our region, and ensuring we have strong supply chains for the more sustainable fuels that can power our trucks, cargo ships and planes into the future,” said Minister Bowen. “We have agreed to work more closely with the aviation, maritime and agricultural industries to help them decarbonise, as well as specific work to improve the supply chain security of the sustainable fuels these industries will rely on more and more.”

The New Zealand ministers also highlighted the importance of financing climate initiatives, a key issue for this year’s UN climate summit, COP29, in Baku, Azerbaijan. “In the lead-up to COP29, where the New Collective Quantified Goal on climate finance will be decided, we will continue to participate in negotiations on how finance can support global climate action,” said Minister Watts.

“Unlocking investment to reduce and remove emissions from the atmosphere is key to helping us meet our climate change targets,” added Minister Willis.

The CEO of NZ Airports Association, Billie Moore, welcomed collaboration between Australia and New Zealand to progress low carbon fuels for aviation. “Australia is well-positioned to develop a large-scale sustainable aviation fuel industry,” she said. “While New Zealand could establish some domestic supply, we will always be dependent on SAF imports, so we have a big stake in supporting Australia to be a successful player in the global SAF market.

“By welcoming New Zealand representatives into Australia’s Jet Zero Council and allowing New Zealand to engage in Australia’s SAF strategy and fuel certification schemes, ministers have laid the foundation for the development of an aligned regional approach that is squarely in New Zealand’s national interest.”

Photo: Air New Zealand is planning to upgrade or replace its Q300 turboprop fleet

Tony Harrington

Correspondent

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Momentum is building in the Asia-Pacific region around improving the sustainability of the aviation sector and the use of sustainable aviation fuels. Major rivals Cathay Pacific and Singapore Airlines have signed a MoU to work together on a range of sustainability measures, while Vietnam Airlines has signed up to IATA’s CO2 Connect platform and recently conducted its first SAF flight, using a blend produced and supplied from Neste’s Singapore refinery. Dubai-based Emirates has also taken its first shipment in Singapore of SAF from Neste. Meanwhile, Air New Zealand has received 500,000 litres of SAF produced in China by Hong Kong energy company EcoCeres and blended by ExxonMobil. Meanwhile, Korean Air is expanding its cargo SAF programme through a new partnership with global logistics company CEVA.

The Cathay-Singapore collaboration was agreed by their respective chief executives at IATA’s recent annual general meeting in Dubai, reiterating the commitment of both carriers to achieve net zero emissions by 2050, and help drive the industry’s shift to more sustainable operations.

The two will jointly press for increased use of SAF across the APAC region and look for opportunities to jointly procure the fuel at specific locations. They will also publicly promote the fuel’s key role in cleaner aviation, advocate for Asia-Pacific governments to enact SAF-supportive policies and urge the creation of a single global accounting and reporting framework to ensure that emission reductions claimed from the use of SAF are both transparent and verified.   

Additionally, Cathay and Singapore will share best practices to reduce single-use plastics, minimise waste and improve energy efficiency in ground operations.

“As part of our collaborative ethos of ‘Greener Together’ we actively seek like-minded industry leaders for strategic partnerships in transitioning to sustainable aviation,” said Cathay’s CEO, Ronald Lam. “Our collaboration with Singapore Airlines aims to accelerate and support the development of the SAF supply chain in the region, fostering a reliable SAF ecosystem to enable the industry to achieve its long-term decarbonisation goals.”

Singapore Airlines CEO Goh Choon Phong said his company was committed to embedding sustainable practices across all areas of the business but added the airline could not achieve all targets by acting alone. “Our partnership with Cathay signifies our mutual ambition to enhance collaboration in sustainability initiatives in the Asia-Pacific region,” he said. “Together we are helping to set the foundation for a more sustainable aviation industry and ensure that future generations continue to reap the benefits of air travel.” 

Also at the Dubai AGM, Vietnam Airlines joined IATA’s CO2 Connect project, through which airlines contribute operational data to the programme’s emissions calculator to help accurately quantify carbon emissions for each passenger by route flown and aircraft type.  Other participants in the programme include American Airlines, British Airways, Cathay Pacific, Japan Airlines, Malaysia Airlines and Qatar Airways, all of which are members of the oneworld global airline alliance.

“Reducing CO2 emissions and promoting sustainable development are top priorities for the global aviation industry,” explained IATA. “However, the measurement and reporting of CO2 emissions have been inconsistent due to the various methodologies used by different airlines.”

The CO2 Connect project creates a common platform for airlines to supply consistent calculation of aircraft CO2 emissions to enable both carriers and passengers to make environmentally informed decisions. The programme uses Recommended Practice Per Passenger CO2 Calculation Methodology (RP-1726), which assesses metrics including airline fuel measurement protocols, the CO2 allocation between passengers and cargo, and cabin class to help ensure the most accurate carbon footprint calculations.

“By participating in CO2 Connect,” said IATA, “Vietnam Airlines underscores its commitment to sustainable development, contributing to the goal of achieving net zero emissions by 2050, as pledged by Vietnam at the 2021 UN Climate Change Conference, COP26.”

In May, Vietnam Airlines conducted its first flight to use sustainable aviation fuel, with an Airbus A321 taking on blended fuel at Singapore Changi for a return flight to Hanoi. Additionally, the airline became the first visiting carrier from the Asia-Pacific region to benefit from SAF produced at the Neste refinery in Singapore.

“We believe that the use of SAF will help create a more sustainable future for the aviation industry, providing passengers with both excellent service quality and environmental friendliness,” said Nguyen Chien Thang, EVP of Vietnam Airlines. “We are collaborating with our partners in the supply chain to expand the use of SAF in the future, thereby contributing to the successful achievement of goals related to net-zero emissions and climate change prevention.”

Emirates too has now started using Neste’s blended SAF in Singapore, produced from sustainably sourced renewable waste and residue raw materials including used cooking oil and animal fat. It is the first SAF procurement by Emirates in Asia and part of a broader global agreement with Neste.

“Emirates’ investment into Neste-produced SAF in Singapore marks a first step forward in our SAF adoption in Asia, a region that is primed to become a leading supplier of SAF, which continues to be in short supply,” said Adel Al Redha, the airline’s deputy president and COO. “While the activation of this agreement marks a milestone in our SAF journey in a new region, there’s still a lot of work to do. And as we procure SAF for the short term, we’ve got our sights set on longer-term agreements to help scale up a steady supply of SAF for our operations.”

The airline also uses SAF on flights from Amsterdam, London Heathrow, Paris, Lyon and Oslo, and late last year integrated SAF into fuelling systems at its home hub, Dubai.

Meanwhile, Air New Zealand has acquired 500,000 litres of SAF produced from used cooking oil in China by Hong Kong headquartered renewable energy company EcoCeres and blended by Exxon Mobil.

The SAF was delivered to Wellington Airport for use in Air New Zealand’s fleet of ATR 72 regional airliners. The carrier says this volume of SAF is sufficient to fuel 165 Airbus A320 flights between the country’s capital, Wellington, and New Zealand’s largest city, Auckland. 

“Airlines are signing supply arrangements for SAF 10 years into the future and beyond,” said Air NZ’s Chief Sustainability and Corporate Affairs Officer, Kiri Hannifin, “so we need to be part of the picture from the start, otherwise New Zealand may fall behind. While the volumes of SAF we are buying are very small compared to the amount of fossil jet fuel we use, they give an important signal to alternative fuel producers that we are open for business.

“We’ve seen increased international momentum around SAF in the past few months, with airlines, governments, airports and fuel companies all getting on board with alternative fuels at pace.

“From 2026, our aircraft will be required to uplift SAF when we fly home from Singapore and Vancouver. Japan has announced a SAF requirement from 2030 and other countries are also making signals that SAF will be mandated for all airlines for outbound flights including in Australia, Indonesia, Hong Kong and China.”

EcoCeres, a business unit of energy supplier Hong Kong and China Gas, operates a waste oil plant in Zhangjiagang, Jiangsu province in China, producing 100,000 tonnes of SAF per year and 200,000 tonnes per year of renewable diesel. The company says it is the world’s first ISCC-CORSIA Plus approved SAF processing facility. It is now planning a second plant in Johor Bahru, Malaysia, that would produce around 350,000 tonnes a year of low carbon transportation fuel.

Following a $400 million strategic investment made in EcoCeres by Bain Capital in 2023, the fast-expanding company earlier this year appointed former Neste CEO Matti Lievonen as its Executive Chairman. He has been joined by another former Neste executive, Phil Moore, who has taken up the position of Global Head of Sustainable Aviation Fuels.

Meanwhile, Korean Air is expanding its cargo SAF programme through a new partnership with global logistics company CEVA.

The logistics group will support Korean Air’s use of SAF for cargo operations, and the airline will reciprocate by sharing carbon emissions reductions with CEVA.

“One of CEVA’s key short-term levers to promote decarbonisation hinges on collaboration,” said Olivier Boccara, CEVA’s Air and Ocean Leader, APAC. “Through developing new solutions for our customers with airline partners like Korean Air we are able to contribute to meaningful change in our industry.

“Extending our SAF offering into the Asian market is a tangible step we can take now as we look ahead to more advances in fuels and other technologies to decarbonise air freight and the global supply chain.”

Photo: Emirates aircraft refuelled with Neste SAF at Singapore Changi Airport

Tony Harrington

Correspondent

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