IATA calls for unified action on aviation decarbonisation

Industry must collaborate globally to achieve Net Zero by 2050
2024-09-27
/
/ New Delhi
IATA calls for unified action on aviation decarbonisation

USD 128 billion a year is needed to meet NetZero target

As the aviation sector is part of a broader global energy transition, air transport lobby IATA has released a roadmap highlighting the feasibility of decarbonising aviation by 2050, but only with a global collaboration among policymakers, the aviation sector, and other industries to accelerate investments in sustainable aviation fuel and clean energy solutions.
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The International Air Transport Association (IATA), an association of airlines around the world, has unveiled its updated Policy and Finance Net Zero Roadmaps, reaffirming that the air transport industry can achieve decarbonisation by 2050. 

In a press statement, IATA says that the updated roadmaps provide deeper analysis and bring to light four key findings about the industry’s transition to sustainable energy.

According to IATA, the transition is achievable, but only if policymakers, the aviation sector, and other industries act swiftly and in unison. 

The report emphasises that the financial investments required to facilitate this transformation are comparable to those seen in the development of other renewable energy markets, such as solar and wind energy.

It says that the time left for joining forces in air transportation’s energy transition is shrinking by the minute. Every action delayed is an opportunity missed.

Willie Walsh

Willie Walsh

“The updated IATA Policy and Finance Net Zero Roadmaps make it clear that decarbonisation by 2050 is possible. They also sound a warning bell that, to achieve this, all stakeholders, particularly policymakers, must collaborate more broadly and act with greater urgency,” says Willie Walsh, Director General, IATA.

“To be successful, we need clear policy and financial frameworks that will support air transportation’s needs in a way that is realistic and coherent with the massive changes that must take place simultaneously in all economic sectors,” Walsh adds. 

IATA says that the Policy Roadmap emphasises the importance of strategic policy sequencing and addresses the need for global collaboration, including beyond the aviation sector. 

The recommendations recognise that there is no one-size-fits-all solution, and policies must ensure that all countries can participate in the future global Sustainable Aviation Fuel (SAF) market.

According to the report, immediate action is needed to unlock the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Emissions Units (EEUs) and prioritise SAF in the product mix at refineries.

IATA report says that strategic policy sequencing combining technology-push and demand-pull measures will be critical. Moreover, governments must foster global, liquid, and transparent markets for cleaner aviation energy.

It adds that transformative collaboration between governments, the aviation sector, and across all sectors to remove existing barriers and promote investment in new technologies, SAF, and infrastructure. 

This recognises that air transport’s decarbonisation is part of the broader global energy transition. The creation of a global SAF accounting framework is also essential to ensure transparency and prevent double counting of SAF’s environmental benefits. 

Addressing the current fragmentation in certification processes for SAF and carbon offsets should be part of that endeavour as well, says IATA.

The Finance Roadmap offers a detailed view of the required investments to reach Net Zero CO2 emissions by 2050 and the costs involved to airlines in procuring the new solutions. 

IATA says that identifying the number of new biorefineries that need to be built and highlighting that their product output will benefit all industries’ energy transition should help focus minds and promote the unity of purpose among policymakers that is necessary for a successful transition.

According to IATA, for average annual investments to reach Net Zero by 2050, the annual average capex needed to build the new facilities over the 30-year period is about USD 128 billion per year, in a best-case scenario, significantly less than the estimated total sum of investments in the solar and wind energy markets at USD 280 billion per annum between 2004 and 2022. 

It says that success would be facilitated by governments redirecting subsidies away from fossil fuels and toward renewable energy production, of which SAF is just one type of product.

Marie Owens Thomsen

Marie Owens Thomsen

Annual Transition Cost, meaning the cost that comes on top of that of jet fuel as a result of procuring SAF, hydrogen, and other key levers, is estimated at USD 1.4 billion in 2025. In 2050, the transition cost could be as high as USD 744 billion, based on IATA’s analysis. These numbers highlight the need for speed and scale in bringing solutions to market so that Net Zero CO2 emissions can be achieved.

“The costs and challenges associated with the energy transition are large, but the opportunities are even greater. Countries have an opportunity to build new industries in agriculture and energy and to benefit from the catalytic growth impact of sustainable air transport,” says Marie Owens Thomsen, Senior Vice President Sustainability and Chief Economist, IATA.

“To realise the opportunities, we need all minds to unite in this mission, and all policymakers, multilateral organisations, investors, solution providers, and the air transport industry to work together. Such transformative collaboration can pool resources and target meaningful action for greater impact. This is what is needed to deliver a sustainable air transport industry by 2050,” adds Thomsen.

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