• Aviation can get to net zero by 2050.
• Time is running out to get energy transition plans in place for aviation.

The International Air Transport Association (IATA) has released its updated Policy and Finance Net Zero Roadmaps, which go into the details of the air transport industry’s decarbonisation journey.

Here are the four key points:

• The energy transition for aviation is achievable by 2050.
• The investment required is similar to what we saw in previous renewable energy markets.
• A united approach from policymakers is key.
• The window for collaboration on energy transition is closing fast; every minute counts.

Willie Walsh, IATA’s DG, said: “The updated IATA Policy and Finance Net Zero Roadmaps make it clear that decarbonization 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. 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."

The Policy Roadmap highlights the need for policy sequencing and global collaboration beyond aviation. The recommendations say there is no one-size-fits-all solution and policies must be designed so all countries can participate in the emerging Sustainable Aviation Fuel (SAF) market.

Key points from the Policy Roadmap

• Immediate Action: Unlock the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Emissions Units (EEUs) and prioritise SAF in refinery products.
• Strategic Policy Sequencing: Technology push and demand pull need to be combined. Governments should create transparent and liquid global markets for cleaner aviation energy.
• Collaboration: Governments, the aviation industry and other sectors need to work together to break down barriers and invest in new technologies, SAF and infrastructure. A global SAF accounting framework is essential for transparency to prevent double counting of environmental benefits and to sort out the current inconsistencies in SAF and carbon offset certifications.

The Finance Roadmap looks at the investment required to get to net zero by 2050 and sets out the costs airlines will incur in adopting new solutions. It highlights the need for new biorefineries, which will benefit the energy transition across all sectors, so policymakers need to work together to make the transition happen.

READ MORE: Stagecoach Announces Additional £7.9M for Green Commute

Key points from the Finance Roadmap

• Average Annual Investment: To get to net zero by 2050, the estimated annual capital spend over 30 years is USD 128 billion. This is less than the USD 280 billion invested annually in solar and wind energy between 2004 and 2022. Redirecting government subsidies from fossil fuels to renewable energy, including SAF would support this goal.
• Annual Transition Costs: The cost of SAF, hydrogen and other key resources will add to jet fuel costs. In 2025, these transition costs will be USD 1.4 billion and could rise to USD 744 billion by 2050, so we need to deliver net zero CO2 emissions solutions now.

Marie Owens Thomsen, IATA’s SVP Sustainability and Chief Economist, said: “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.

"To realize the opportunities, we need all minds to unite in this mission, and all policymakers, multilateral organizations, 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."

For further details, access the Policy Net Zero Roadmap and Finance Net Zero Roadmap.

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Source: The International Air Transport Association