World Economic Forum – GreenAir News https://www.greenairnews.com Reporting on aviation and the environment Mon, 01 Aug 2022 10:58:12 +0000 en-GB hourly 1 https://wordpress.org/?v=6.7.1 https://www.greenairnews.com/wp-content/uploads/2021/01/cropped-GreenAir-Favicon-Jan2021-32x32.png World Economic Forum – GreenAir News https://www.greenairnews.com 32 32 Aviation industry intensifies pressure on governments to support long-term decarbonisation goal https://www.greenairnews.com/?p=3034&utm_source=rss&utm_medium=rss&utm_campaign=aviation-industry-intensifies-pressure-on-governments-to-support-long-term-decarbonisation-goal Wed, 08 Jun 2022 11:55:21 +0000 https://www.greenairnews.com/?p=3034 Aviation industry intensifies pressure on governments to support  long-term decarbonisation goal

Aviation industry pressure is intensifying on governments to adopt a long-term goal to help decarbonise air transport when they meet at this year’s ICAO 41st Assembly. Executives from across the industry have met to detail aviation’s climate aspirations ahead of the Assembly, to be held in September. At a Montreal meeting, the cross-industry Air Transport Action Group (ATAG) urged ICAO’s 193 member nations to agree on stable policies that enable aviation to transition to a net-zero future, reports Tony Harrington. “The decarbonisation of the global economy will require investment across countries and across decades, particularly in the transition away from fossil fuels,” said Haldane Dodd, ATAG’s Executive Director. “Stability of policy will matter for that investment environment.” The Clean Skies for Tomorrow Coalition, an initiative led by the World Economic Forum, has also called for an end to policy uncertainty on aviation decarbonisation, urging governments and industry to collaborate, particularly on expediting delivery of affordable supplies of sustainable aviation fuels.

The aviation industry is keen to reduce its emissions. But the cost of SAF is estimated to be at least three times that of conventional fossil fuels, deterring many airlines from buying the fuel, while lack of demand has left prices high and production low. As well, new propulsion technologies including hydrogen and electric power are still in development, and initially likely to be feasible only for short-range flights, limiting their potential to reduce emissions.

“In October last year, the industry – airlines, airports, manufacturers and business aviation – all committed to raise ambition on long-term climate action and pursuing net-zero carbon emissions by 2050,” said Dodd, in a statement following an ATAG-organised meeting, Aviation Net-Zero Dialogue, held in Montreal. “This was backed up by a high-level plan on how it can be achieved including advances in technology and a shift to new types of low-carbon fuel.

“We are one of the only industries in the world to have this kind of joined-up global vision but we need governments to also take part in this journey. The aviation industry is calling on governments meeting at this year’s Assembly to adopt a long-term climate goal aligned with industry’s ambitions.

“We know these ICAO negotiations are challenging. We are dealing with a global approach to a complex issue. We are trying to shift our energy supply very rapidly from something that has been built up over the last century. We are trying to do it without harming growth, ensuring we can continue to connect all parts of the world and provide jobs and be a conduit of trade. But the risks of not agreeing a goal also provide important impetus to the talks.”

ATAG said key to the discussions was balancing the need to decarbonise in a way that did not distort competition globally yet “raised climate ambition everywhere”, while taking into account the different levels of development and capacity around the world.

Speaking also at a UN meeting in Stockholm to mark 50 years since the 1972 UN Conference on the Human Environment, which established the United Nations Environment Programme and other processes including the UN Framework Convention on Climate Change, Dodd acknowledged the net zero emissions by 2050 pledge “is going to be a significant challenge, but we know that by working together we can make it happen.

“And we urge governments to grasp the opportunity of sustainable aviation fuel – on the flightpath to 2050, we have the chance to support more climate-friendly connectivity and transport, green energy industries in nearly every country on earth and up to 14 million jobs worldwide.”

Ahead of its Assembly, ICAO is inviting governments to take part in a hybrid high-level meeting on the feasibility of a long-term aspirational goal (HLM-LTAG) in Montreal on July 19-22. Representatives, said ICAO, “will discuss the CO2 emissions reduction scenarios and options for a goal, along with the means of implementation and the monitoring of progress, before concluding with recommendations.” The meeting will be preceded by an open-to-all online ICAO Stocktaking event to inform delegates and others on the latest developments on technology, operations and fuels.

Meanwhile, the Clean Skies for Tomorrow Coalition, in its newly-released 2030 ambition statement, said aviation historically accounted for around 1 billion tonnes, or 2-3% of global CO2 emissions, each year and risked rising again as airlines recovered from the pandemic and resumed operations.  

“Members of the coalition agree that achieving net zero in the sector will require reduction, as far as possible, of the emissions caused by the aviation sector through efforts including the optimisation of routes and increased energy efficiency through the use of new aircraft and improved ground operations,” said the coalition. “Any remaining emissions must be balanced by appropriate carbon removal, so as to arrive at net zero emissions in the sector.

“Hybrid-electric and hydrogen-powered aircraft could significantly help the industry reach the next efficiency horizon, but development and deployment at scale will take time and the technology will be first available for short to medium range aircraft. The deployment of sustainable aviation fuels is the most promising option to significantly reduce the industry’s carbon emissions in the near term, and for long-haul flying, even beyond 2050.

“The key issue currently preventing the production and use of SAF from taking off is the price gap between fossil-based jet fuel and SAF, which remains prohibitively large. But fuel providers are lacking a strong demand signal to increase production, and demand is low due to the high price premium. Furthermore, policy uncertainty deters investment, as does the high level of risk associated with new technologies.

“We are therefore calling on governments, international organisations and other stakeholders to work with us to achieve our vision through comprehensive policy mechanisms, targeted investments and fiscal support and regulations that afford a level playing field while incentivising transformation. Together we can take a giant leap towards the decarbonised, sustainable and affordable aviation industry needed for our global future.”

Photo: Montréal-Pierre Elliott Trudeau International Airport

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Sixty companies in World Economic Forum coalition commit to reaching 10% SAF use in global aviation by 2030 https://www.greenairnews.com/?p=1737&utm_source=rss&utm_medium=rss&utm_campaign=sixty-companies-in-world-economic-forum-coalition-commit-to-reaching-10-saf-use-in-global-aviation-by-2030 Mon, 27 Sep 2021 13:48:53 +0000 https://www.greenairnews.com/?p=1737 Sixty companies in World Economic Forum coalition commit to reaching 10% SAF use in global aviation by 2030

Sixty companies in the World Economic Forum’s Clean Skies for Tomorrow Coalition have signed a commitment to accelerate the supply and use of sustainable aviation fuel to reach 10% of global jet aviation fuel supply by 2030. Signatories represent a global group of airlines, airports and fuel suppliers, as well as non-aviation companies that rely on corporate air travel for their business operations and which recognise decarbonising aviation lies with all that depend on it. With the current commercial production of SAF at less than 0.1%, significant scale-up must take place to meet this target, writes Susan van Dyk. The problem is the high cost of SAF, and producers and carriers alone are unable to carry the burden, said Lauren Uppink Calderwood, Head of Aviation, Travel and Tourism Industries at WEF. The commitment represents support for the UN High Level Climate Champions’ 2030 Breakthrough Outcome for aviation, one of over 30 sectoral near-term targets deemed critical to halving emissions by 2030 and delivering the promise of the Paris Agreement, said WEF.

Development of a new generation of hybrid-electric and hydrogen-powered aircraft could help reach the next efficiency level, but deployment at scale would take time and initially focus on the short to medium range, while SAF is the most promising option to significantly reduce the aviation industry’s carbon emissions in the near term, and for long-haul flying, even beyond 2050, said the coalition’s members in a statement.

SAF is critical, Jonathon Counsell, Group Head of Sustainability at International Airlines Group (IAG), told a press conference to announce the commitment alongside Heathrow Airport CEO John Holland-Kaye and Shell’s President of Global Aviation, Anna Mascolo, held during WEF’s Sustainable Development Impact Summit. The three organisations are steering committee members of the Clean Skies for Tomorrow (CST) initiative.

They acknowledged the 10% target was challenging, but said scale-up could be achieved with the right policies. “Yes, it’s ambitious – we are talking 30 million tonnes by 2030 – but with the right policies in place we can deliver that,” indicated Counsell. “This will get us on the trajectory to deliver a truly sustainable industry by 2050.”

Said Mascolo: “We have real momentum now to make a difference. Shell is committed to supplying 10% SAF by 2030 on all its sales of jet fuel and is making investments into SAF facilities. It has committed to supplying 2 million tonnes of SAF per year by 2025.”

According to Holland-Kaye, the 10% target “is only a milestone and will probably improve”. He added: “The critical thing is that we make progress really quickly. If we don’t break the back of this in the next decade, we will have no chance of reaching net zero by 2050. This is the decade for transforming the energy supply chain.”

They highlighted the role of policy in order to reach the target. “Policy is absolutely the enabler to get these plants built and must address three aspects,” said Counsell. “It must create a demand signal, create price stability by using a mechanism such as contracts-for-difference and reduce the capital risk through, for example, loan guarantees. We welcome the progress that we have seen in the last few months in the US, EU and UK but we will need additional policy to attract the investment to get these plants built. The proposed US blenders tax credit is probably in the lead for effectiveness in encouraging investment.”

Holland-Kaye believes the right policies can unlock billions of dollars in financing. “Banks have told me SAF is one of the most investible sectors they have seen. It’s very simple – all you need is the mandate and the price stability mechanism and that will unlock the financing to make this transformation happen.” He also called for a greater commitment at ICAO’s Assembly in 2022 to target net-zero emissions by 2050.

“Achieving our ambition will require commitment, innovation and cross-industry collaboration from a wide range of stakeholders,” said Uppink Calderwood. “We are calling on governments, international organisations and others to work with us to take important steps forward through new policies, targeted investments and regulations that create a level playing field while incentivising transformation. Together we can take a giant leap towards the decarbonised, sustainable and affordable aviation industry needed for our global future.”

One of the signatories to the 10% by 2030 pledge, and a member of the CST steering committee, is Indian carrier SpiceJet. “Our announcement emphasises our commitment to the planet and prosperity,” said CEO Ajay Singh. “Upscaling SAF with a global approach will boost India’s economy. Accelerating the SAF industry with a global approach will bring opportunities for economic growth and transformation in India.”

Photo (Boeing): Indian airline SpiceJet is one of the signatories to the 10% by 2030 SAF commitment

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WEF’s Clean Skies initiative unveils new SAF certificate system for corporate travellers https://www.greenairnews.com/?p=1266&utm_source=rss&utm_medium=rss&utm_campaign=wefs-clean-skies-initiative-unveils-new-saf-certificate-system-for-corporate-travellers Wed, 30 Jun 2021 19:41:01 +0000 https://www.greenairnews.com/?p=1266 WEF’s Clean Skies initiative unveils new SAF certificate system for corporate travellers

A new certificate system has been launched that will allow corporations and travellers to claim lower emission benefits through covering the price premium of sustainable aviation fuel (SAF). It aims to unlock funding sources and help boost demand for clean jet fuels that ensure reductions in lifecycle carbon emissions. The Sustainable Aviation Fuel Certificate (SAFc) has been developed through the World Economic Forum’s Clean Skies for Tomorrow (WEF CST) initiative under a project co-led by WEF, RMI and PwC Netherlands and involving a wide range of industry partners. The system works within standard book-and-claim processes, which will allow the actual SAF to be delivered to the airport nearest its production plant. The certification is initially designed for corporations with significant air travel and freight carbon footprints but WEF said it can be expanded in due course. A number of large US corporations have recently signed SAF agreements with airlines including American and Alaska.

“Clean Skies for Tomorrow was founded to accelerate the deployment of SAF and aviation’s net zero pathway,” said Pedro Gomez, Head of Shaping the Future of Mobility at WEF. “Consumer demand for sustainable air travel is a critical part of that pathway and SAFc was specifically designed to enable a clear and consistent market demand signal.”

With SAF two to five times the price of convention jet fuel and accounting for only 0.1% of fuel used in aircraft worldwide, the high cost and limited supply deters investment to scale up production and requires a significant demand stimulus, which the SAFc mechanism aims to provide, says WEF. This kind of intervention is particularly critical during the pandemic recovery, it adds, when a financially perilous aviation industry is unable to subsidise increased use of SAF on its own.

“This is the time for innovation in aviation emissions reduction,” said Jules Kortenhorst, CEO of RMI. “SAF provides the most promising solution to reducing aviation emissions yet today, demand for SAF far outstrips supply. WEF and RMI have developed SAFc to enable ambitious corporations to address emissions from flying while sending a strong demand signal and catalysing new SAF production.”

WEF says corporations have already indicated a willingness to pay more for employees’ sustainable travel practices and input from stakeholders in the CST initiative suggests corporate demand alone can cover one-third of the price premium associated with IATA’s 2025 global SAF volume target of 2% of jet fuel consumption, or around 6-7 billion litres. In terms of ticket prices, feedback from many CST’s aviation customer partners indicates a 5-10% increase in airfares would be acceptable provided this delivered a significant and verifiable decrease in emissions, reports WEF.

Some large companies within the CST coalition – including Deloitte, Deutsche Post, DHL Group, Microsoft and BCG – have already signed SAF agreements in respect of corporate travel with airlines including Alaska Airlines and American Airlines (see articles here and here). In May, a group of large American corporations formed the Sustainable Aviation Buyers Alliance to drive investment in SAF (see article)

The SAFc system has been designed with a robust tracking and verification process, assures WEF, as well as a registry to ensure that climate-related claims are legitimate and only claimed by a single party. It says this type of virtual accounting system is already established in renewable electricity markets through energy attribute certificates and guarantees of origin, and has served as a model for the SAFc framework. These mechanisms verify that electricity is generated from an eligible renewable source and have been instrumental in allowing companies to claim the resulting environmental benefits without producing electricity themselves.

Under the SAFc mechanism, fuel producers generate eligible SAF from sustainable feedstocks following standards such as those developed by the ICAO CORSIA scheme. They issue a defined amount of SAFc based on either fuel volume or overall lifecycle emission reductions. Producers can then sell the actual SAF volume as well as the virtual SAF certificates separately. In a volumetric model, SAFc prices could factor in the overall premium of the associated SAF over fossil-based jet fuel after government incentives are incorporated. In a lifecycle assessment (LCA) based model, SAFc prices would be based on overall LCA emission reductions over a standardised baseline of fossil-based jet fuel. SAF buyers or users such as aircraft operators can claim the direct (Scope 1) emissions reduction value of the SAF itself and the buyer of the SAFc, such as a corporation with business travel needs, can retire the certificate and claim the related indirect (Scope 3) emission reductions.

Once the SAF has been certified as sustainable, it can be transacted and ownership transfer is tracked both physically and virtually until claims are retired within a registry.

Over the next year, WEF says the development of the SAFc framework will shift into a next phase that will include additional SAFc pilot transactions and finalisation of a full emissions accounting system. Other developments will ensure compatibility with regional SAF regulations and policies, such as the EU SAF blending mandate and California’s Low Carbon Fuel Standard.

Photo: Deloitte has teamed with American Airlines to offset business travel emissions through SAF

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American Airlines teams with Deloitte to offset business travel emissions through SAF https://www.greenairnews.com/?p=707&utm_source=rss&utm_medium=rss&utm_campaign=american-airlines-teams-with-deloitte-to-offset-business-travel-emissions-through-saf Thu, 04 Mar 2021 15:57:11 +0000 https://www.greenairnews.com/?p=707 American Airlines teams with Deloitte to offset business travel emissions through SAF

Deloitte and American Airlines are to collaborate on an initiative that will enable carbon emissions from business travel undertaken by the global auditing firm to be offset through the purchase of sustainable aviation fuel (SAF). The agreement will reduce life-cycle aviation emissions by 3,050 tonnes, equivalent, says the airline, to around 10,000 passengers flying one-way from New York to Los Angeles. The partnership will explore how a certificate that allocates the emissions reduction value of SAF, currently under development by the World Economic Forum’s Clean Skies for Tomorrow coalition, can benefit companies seeking to reduce their Scope 3 business travel emissions. In early 2020, American committed to purchase 9 million gallons of SAF over three years from renewable jet fuel producer Neste, with first deliveries taken at San Francisco International Airport in July 2020. The airline has a goal of sourcing 2.5 million gigajoules of cost-competitive renewable energy by 2025.

The collaboration with Deloitte is the first between a US airline and an organisation seeking to reduce its business travel emissions through the use of SAF, claims American. Dutch airline KLM launched its Corporate BioFuel Programme – recently renamed the Corporate SAF Programme – in 2012, which now has 16 partners. Lufthansa also offers its business customers the opportunity to offset emissions through SAF. Deloitte has a goal to reduce its business travel emissions per employee by 50% by 2030.

“We recognise the important role the business community plays in facilitating the transition to a low-carbon economy. It’s a monumental task no organisation can solve alone, which is why we’re looking forward to working with American Airlines on a new concept to accelerate adoption of a fuel source that can dramatically reduce emissions from aviation,” said Joe Ucuzoglu, US CEO of Deloitte. “To make meaningful progress in combating climate change, it’s crucial that organisations continue to collaborate through innovative solutions and bold actions.”

The SAF certificate is aimed at unlocking new capital to boost SAF production while enhancing corporate climate goals to reduce emissions from business travel. American Airlines is a member of the WEF Clean Skies for Tomorrow coalition.

“The most immediate action to achieve carbon-neutral flying is the investment in, and rapid scale-up of, SAF production and use – which in turn will require innovative regulatory mechanisms and clear demand signals,” said Christoph Wolff, Head of the Shaping the Future of Mobility programme at the World Economic Forum. “We’re delighted to see this demonstration by Deloitte and American Airlines that a new market-based mechanism is viable and can help meet the needs of corporations with ambitious climate goals.”

American Airlines joined with other members of the oneworld airline alliance last year in committing to a net-zero emissions goal by 2050 (see article). According to its latest ESG report, the airline says increasing the use of SAF has to be a core part of its low-carbon pathway but there remain significant challenges to the availability of SAF in the quantities and at the prices necessary to materially reduce emissions in the near term. Although at the time of the Neste agreement announcement it was the largest single SAF purchasing commitment from the industry, American says it represented considerably less than 1% of the airline’s total annual fuel consumption.

“Investing in the decarbonisation of aviation is an imperative for our company and our industry,” said American’s CEO Doug Parker, commenting on the Deloitte partnership and the SAF certificate. “As we work towards our own goal of achieving net-zero emissions by 2050, we know we can help accelerate the transition to low-carbon air travel through collaborations like these, meeting the needs of our customers and the planet. We are proud and excited to be working with Deloitte to advance our shared vision for a more sustainable future.”

Photo: American Airlines

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Aviation must adapt to meet the growing calls for a sustainable future, ICAO Secretary General tells Davos session https://www.greenairnews.com/?p=628&utm_source=rss&utm_medium=rss&utm_campaign=aviation-must-adapt-to-meet-the-growing-calls-for-a-sustainable-future-icao-secretary-general-tells-davos-session Fri, 05 Feb 2021 14:07:00 +0000 https://www.greenairnews.com/?p=628 Aviation must adapt to meet the growing calls for a sustainable future, ICAO Secretary General tells Davos session

While there will be no substitutes for aviation, the Covid pandemic will change the way we do business and the aviation sector will need to rapidly adapt in order to meet the growing calls for a sustainable flying future, ICAO’s Secretary General Dr Fang Liu told a virtual session at the World Economic Forum’s Davos 2021. She encouraged all stakeholders to participate in the process of developing a long-term aspirational goal that ICAO member states are due to consider at their next Assembly in 2022. UK Transport Secretary Grant Shapps said his government wanted to use COP26, to be held later this year in Glasgow, to accelerate the transition to a cleaner aviation sector and revealed plans to make sustainable aviation fuel (SAF) available at UK airports during the climate summit. Industry representatives Grazia Vittadini, CTO of Airbus, and Dick Benschop, CEO of Schiphol Group, highlighted the importance of coordinated government policies to drive investment in new aircraft technologies and sustainable fuel production and take-up. The World Economic Forum’s Clean Skies for Tomorrow initiative, which aims to support the transition to SAF as the most promising short-term option to reduce aviation’s carbon emissions, recently released a report that examined feedstock availability and sustainability, production capacity, technology maturity and expected costs of the most promising SAF production pathways.

Dr Liu said the UN agency could play a central role in bringing states, manufacturers, airlines, airports and stakeholders together in the post-Covid transition towards a decarbonised future.

“A global policy under ICAO is crucial because this is the only way to ensure the success of this global transition that needs to take place, while leaving no country behind and avoiding distortion of competition,” she told the session, ‘Building a Path to Net-Zero Aviation’, moderated by LanzaTech CEO Jennifer Holmgren.

“The disruptions to the way of life of billions around the world will bring fundamental and widespread changes to who aviation serves, and how, once the pandemic is behind us. The aviation sector will need to rapidly adapt, to access green funding for investments in technology, operations and fuels, in order to meet the growing calls for a sustainable flying future.”

She said individuals too will play an increasingly important role in sustainability, choosing to fly with airlines and on aircraft with lower emissions.

Added the UK government’s Grant Shapps: “Absolutely fundamental to our ‘build back better’ plan is to decarbonise aviation, making planes cleaner and greener so the sector can grow in a sustainable and resilient way. It’s a process that started well before coronavirus but I consider it to be more important than ever that as we come out of it, we pursue it even more actively. Our single overriding goal is to make net-zero a possibility in aviation and to do so well before 2050.”

He said governments working alone could not tackle the issue and close collaboration with industry and also at a global level was needed, pointing to the setting up in the UK of the Jet Zero Council and the UK working through ICAO to set global net-zero, long-term goals and standards for aviation emissions.

“We want to use COP26 to help accelerate the transition to cleaner aviation,” he said. “We’re going to be working with the World Economic Forum (WEF) and other states to develop new policy tools that will help the deployment of SAF. For the summit itself, we’re seeking to arrange the provision of SAF for delegates’ flights at key UK airports and we’re going to encourage other countries across the world to do the same.

“The world is coming together around this policy discussion but only the power of government as a convener can bring it altogether and ‘grease the wheels’ to accelerate the process.”

Grazia Vittadini of Airbus said multilateralism and cross-industry unity was the common denominator in stimulating a sustainable and long-term recovery of the sector. “We clearly have the right level of ambition and science-driven targets,” she said. “Now we need to progress on the regulatory framework of policy support as well as robust and safe technology pathways to get us there.”

Schiphol’s Dick Benschop said that up until now there had been a scatter-gun approach to aviation sustainability policy that had been ineffective.

“We need to focus on three areas: carbon pricing schemes that encourage the right incentives, tackling the issue of SAF mandates and how to support R&D into new propulsion areas such as electric and hydrogen. Ticket taxes aren’t helpful as they add cost but don’t drive sustainability. Sustainability will have its costs but enormous benefits as well and we need policies that drive investments.”

He said there was cause for optimism, with policies taking shape in Europe such as the ReFuelEU Aviation initiative that he expected will introduce a SAF blending mandate. “This would be an enormous step forward,” he believes.

Other positive developments he saw included a coming together by the sector towards a commitment to net-zero aviation in 2050 in line with the Paris Agreement and the big oil companies making serious investment decisions on sustainable fuels.

Vittadini saw similar signs of optimism and said it was a false choice as to whether the aviation sector should first focus on recovering profitability post-Covid or remain committed to net-zero.

“At Airbus, we have accelerated our carbon-neutral ambition into a tangible plan to bring a zero-emission aircraft to market by 2035, which is the most direct contribution we can bring as a manufacturer,” she said.

“The pandemic has increased global understanding of how dependent we are on our environment. It’s become quite clear that any industry recovery and profit in the years to come will depend on ambitious climate protection plans in parallel.

“Another key implication for the industry, especially in Europe, is finding a balanced way forward for alternative fuel propulsion solutions and I see three priorities.”

First, she said, was the need to boost production and uptake of SAF through dedicated policy measures. “More specifically, I believe this policy should include prioritisation of sustainable fuels for aviation, investing in high-impact feedstock and conversion technologies, and cost-effective financing. SAF provides a short and long term solution to decarbonising the sector, while technology in parallel continues to evolve to achieve even more fuel-efficient aircraft than today.”

Another step would be to implement a “green stimulus” for airlines to enable them to retire old and less environmentally-friendly aircraft, she said.

“Replacing a single aircraft can save more than 4,500 tonnes of CO2 per year, with the saving rising to 37,000 tonnes if you consider long-range aircraft. Creating the right conditions, the right financing framework to allow airlines to modernise their fleet towards more fuel-efficient aircraft is a win-win and would help support the European green agenda.

“Lastly, we need to catalyse an industry collaboration like we have never seen before in recent history, joining forces with all stakeholders across the industry, the political arena and research institutions. It’s important to note that as with every new technology and innovation rollout, the global transition to zero-emission flight requires a total rethink of many elements of our intricate aviation ecosystem.

“Hydrogen will need a technical redesign of current aircraft. Engineers will need to take the technologies developed in automotive and space to bring the weight and the cost down, and making the technology safe and compatible with commercial aircraft operations. We’re going to need to mobilise changes to airport infrastructure and we’ve started working with several airports, including Schiphol, on the concept of an airport hydrogen hub. Of course, we’re going to need the cooperation of aviation authorities to certify future hydrogen-powered aircraft to airworthiness safety standards, not to mention government collaboration as a critical piece of the puzzle. We do welcome the R&D funding support we are receiving from the EU and countries including France, Germany, Spain and the UK.”

Established in 2019, the Clean Skies for Tomorrow (CST) coalition brings together around 80 aviation and fuel industry companies and other stakeholders, including international organisations and associations, think tanks, NGOs and academia, to facilitate the transition to net-zero flying by mid-century.

In their foreword to the ‘Sustainable Aviation Fuels as a Pathway to Net-Zero Aviation’ report, Christoph Wolff, Head, Shaping the Future of Mobility, at WEF and Daniel Riefer, Platform Fellow WEF and Associate Partner at McKinsey, said that with electric flight and hydrogen-powered propulsion still years away from application at scale, SAF is a necessary step in aviation’s decarbonisation pathway.

“The CST coalition is working to address the chicken-and-egg scenario whereby producers and consumers of SAF are both either unwilling or unable to carry the initial cost burden of investing in new technologies to reach a scale where they are more cost competitive with existing fossil fuel-derived options,” they write. “The aim is to break this impasse and advance the commercial scale of viable production of sustainable low-carbon aviation fuels (bio and synthetic) for broad adoption in the industry by 2030. This report, developed in close consultation with the CST coalition, serves to provide a fact base on which swift and bold actions should be taken by public and private sector leaders alike.”

In 2019, says the report, fewer than 200,000 tonnes of SAF were produced globally, amounting to less than 0.1% of the roughly 300 million tonnes of jet fuel used by commercial airlines. If all SAF projects that have been publicly announced are completed, capacity will scale to at least 4 million tonnes in the next few years, reaching volumes just over 1% of expected global jet fuel demand in 2030. However, it says, a transition to SAF is in reach and from a feedstock perspective, enough raw material is available to fuel all aviation by 2030.

To scale production and make SAF economically viable and scale production, the authors say several advances will be required: technological challenges must be overcome; a supportive regulatory framework needs to be installed to stimulate demand from corporate and private customers; and innovative solutions to finance the transition have to be implemented. “The CST coalition is debating how to meet these challenges and help aviation earn its right to keep growing,” says the report.

It concludes: “Producing sustainable aviation fuel will almost certainly continue to more expensive than refining fossil jet fuel but the costs of exceeding the 1.5 or 2.0-degree targets of the Paris Agreement are incalculably greater.”

Building a Path to Net-Zero Aviation’ session:

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