Air New Zealand Scraps 2030 Emissions Reduction Target Amid Challenges

Air New Zealand, one of the leading airlines in the region, has announced that it is removing its 2030 emissions reduction target and withdrawing from the U.N.-backed Science Based Targets initiative (SBTi) aimed at corporate action on climate change. This decision comes as the airline faces major challenges in its fleet renewal program and the availability of sustainable jet fuels.

The airline had set a goal to reduce its carbon intensity by 28.9 percent by 2030 compared to 2019 levels. However, due to factors such as the availability of new aircraft, the affordability and availability of alternative jet fuels, and global and domestic regulatory and policy support, the airline has found it difficult to meet this target. CEO Greg Foran explained that potential delays to their fleet renewal plan posed a risk to achieving the target, as global manufacturing and supply chain issues could slow down the introduction of newer, more fuel-efficient aircraft into the fleet.

As a result, Air New Zealand will now develop a new carbon emissions target that takes into account these industry challenges. The company remains committed to at least reaching its 2050 net zero target. Chair Dame Therese Walsh emphasized the airline’s ongoing work to transition away from fossil fuels and its advocacy for regulatory and policy settings that facilitate climate change mitigation in the aviation industry.

The Science Based Targets initiative (SBTi), a collaboration with the United Nations Global Compact and other groups, plays a crucial role in driving urgent corporate action on climate change. The airline’s previous target, validated by the SBTi, aimed to reduce absolute emissions by 16.3 percent over the period from 2019. Science-based targets provide companies with a robust and credible carbon reduction target that aligns with the latest climate science.

In Australia, Qantas, the national carrier, has committed to reducing carbon emissions by 25 percent of 2019 levels by 2030. The airline also aims to have 10 percent of its fuel mix comprised of Sustainable Aviation Fuel (SAF) by 2030, increasing to 60 percent by 2050. Qantas recognizes the significant issue of human-induced climate change for the aviation industry and has committed to the targets set in the Paris Climate Agreement.

To further boost the production of aviation biofuel, Qantas has joined a new airline alliance and allocated US$50 million from its climate fund towards the initiative. Sustainable Aviation Fuel (SAF) is considered one of the most effective tools for airlines to reduce emissions. Qantas Group CEO Vanessa Hudson stressed the need for partnerships across industries to decarbonize the aviation sector.

Virgin Airlines, another major player in Australia, aims to cut its emissions by 22 percent by 2030. The airline’s owner, Bain Capital, highlights the importance of its fleet renewal program in achieving this goal. The introduction of new Boeing 737 aircraft is expected to deliver significant emissions reductions per seat per trip. Virgin, along with Qantas, shares the federal government’s goal of achieving net zero emissions by 2050.

In conclusion, Air New Zealand’s decision to remove its emissions reduction target and withdraw from the SBTi reflects the challenges faced by the airline in its fleet renewal program and the availability of sustainable jet fuels. However, the company remains committed to its 2050 net zero target and will develop a new carbon emissions target that takes into account industry challenges. Qantas and Virgin Airlines in Australia are also taking steps to reduce their emissions and achieve net zero by 2050, recognizing the importance of sustainability in the aviation industry.