Emirates Forms $200m Fund for Aviation Sustainability

Published on:
by KnowESG
Image courtesy of Reuters

Emirates airline said it had committed $200 million to a research fund focusing on reducing the impact of fossil fuels in commercial aviation because hitting net zero emissions targets would not be possible with currently available options.

Emirates President Tim Clark said the biggest impediment for airlines in reducing their environmental impact was currently fuel.

"It's clear that with the current pathways available to airlines in terms of emissions reduction, our industry won't be able to hit net zero targets in the prescribed timeline," Clark said.

The funds will be disbursed over three years, and the Dubai-based airline will identify partnerships with organisations working on fuel and energy technologies, it said.

Clark said Emirates would use environmentally responsible practices until other fuel solutions were found, including sustainable aviation fuel (SAF) where feasible.

Global SAF production is estimated to meet just 2% of aviation fuel needs by 2025, according to airline industry group IATA.

SAF is produced in tiny quantities from feedstocks such as cooking oils and animal waste and costs two to five times more than conventional jet fuels.

For more sustainable finance news

Source: Reuters


Sustainable Finance Headlines

EGA Launches Green Finance Framework for ESG Projects

EGA Launches Green Finance Framework for ESG Projects

BIS and MAS Team Up to Tackle Climate Risk in Finance

BIS and MAS Team Up to Tackle Climate Risk in Finance

Digital Payments Slash CO2, Says Worldline Study

LSFI Names Avico Deputy CEO for Sustainability

SAB Recognised for Excellence in Banking and ESG

YIT Establishes a New Green Finance Framework

Terna Secures €250 Million ESG-Linked Credit Facility

PTI Converts €1.2B Credit into Sustainability Loan

BBVA Expands Decarbonisation Goals to Real Estate, Aluminium

Air Liquide Issues €500M Green Bond for Green Projects