Airlines Facing Mounting Pressure from Investors to Curtail Growth, Use Sustainable Fuel
A Brief Summary
Investors who are part of Climate Action 100+, the world's largest grouping of investors, put pressure on airlines operating worldwide to curtail growth in air travel and expedite the use of sustainable fuel. The aviation industry needs to take urgent action to align with the world's climate goal.
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CA100+ said it is significant to help limit global warming to 1.5 degrees Celcius above pre-industrial norms. It said it was updating its views on the sector following a report from the International Energy Agency last year that suggested reducing fossil fuel to a great extent to reach the mid-century goal.
The report says the use of sustainable fuel has to increase substantially between 2022 and 2030, including 16 per cent will have to come from advanced biofuels and 2 per cent from synthetic fuels. In 2021, the use was well below 0.1 per cent.
Further, CA100+ said long-haul leisure flights and business travel have to be capped according to 2019 levels to reduce emissions at half their projected 2050 level. The aviation industry has to scale down its emissions instead of using carbon offsets to compensate.
Ben Pincombe, Head of Stewardship for Climate Change at the UN Principles for Responsible Investment, said: " The industry hold its future in its own hands. If the sector fails to respond effectively, it is likely to face significant and rapid regulatory tightening, and ever greater scrutiny and challenge from capital markets.”
