Latest news with #CarbonOffsettingandReductionSchemeforInternationalAviation
Time of India
16 hours ago
- Business
- Time of India
Sustainable Aviation Fuel Production Set to Double Amidst Policy Challenges, ET TravelWorld
Advt By , ETTravelWorld Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETTravelWorld App Get Realtime updates Save your favourite articles Scan to download App The International Air Transport Association ( IATA ) has cautioned that policy and market inefficiencies could obstruct the scaling up of sustainable aviation fuel (SAF), even as global production is forecast to double to 2 million tonnes in 2025. Despite this growth, SAF will still account for just 0.7 per cent of total airline fuel consumption.'While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7 per cent of aviation's total fuel needs. And even that relatively small amount will add USD 4.4 billion globally to the fuel bill,' said Willie Walsh, IATA's Director General. He noted the need for rapid acceleration in production and cost-efficiency mandates that came into force in January 2025 have driven up SAF costs. Airlines purchasing SAF to meet the EU and UK targets are now facing costs five times higher than conventional jet fuel. Of the USD 1.2 billion market price for the 1 million tonnes expected to be used to meet mandates, an additional USD 1.7 billion in compliance fees could have otherwise reduced carbon emissions by 3.5 million tonnes.'This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonisation,' Walsh support global market development, IATA has launched two initiatives: a SAF registry under the Civil Aviation Decarbonization Organization (CADO), and a SAF Matchmaker to connect buyers and is also urging governments to redirect fossil fuel subsidies, integrate SAF into broader energy policy, and uphold the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Only Guyana has made eligible emissions units available for airlines so the third-largest oil consumer globally, has set a SAF blending target of 2 per cent for international flights by 2028. Through partnerships with ISMA and Praj Industries, IATA aims to support India's biofuel ambitions using global standards and lifecycle assessments.
Time of India
17 hours ago
- Business
- Time of India
Airlines set to record higher profits of $36 billion in 2025, says IATA, ET Infra
Efficiency, fuel and demand trends Advt Fleet constraints and geopolitical risk Advt By , ETInfra Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. The global airline industry is projected to earn net profits of $36 billion, up from $32.4 billion in 2024, the International Air Transport Association said in its latest financial outlook for per the report, net profit margins are expected at 3.7 per cent, up from 3.4 per cent in 2024, while return on invested capital is projected at 6.7 per cent, marginally above 2024 traveller numbers are expected to reach 4.99 billion in 2025, and air cargo volumes 69 million tonnes, the report noted. These are higher than 2024 levels but lower than previous Walsh, IATA 's Director General, said, 'The first half of 2025 has brought uncertainties to markets. Nonetheless, by many measures including net profits, it will still be a better year for airlines than 2024, although slightly below our previous projections. The biggest positive driver is the price of jet fuel which has fallen 13 per cent compared with 2024. That's still about half the average profitability across all industries. But considering the headwinds, it's a strong result that demonstrates the resilience that airlines have worked hard to fortify.'IATA noted that passenger load factors are expected to reach 84 per cent in 2025. Passenger revenues are projected to be $693 billion, supported by ancillary revenues of $144 billion. Passenger growth, measured in Revenue Passenger Kilometres, is expected at 5.8 per cent. Passenger yields are forecast to fall by 4 per cent. The real average return airfare in 2025 is expected to be $ data in April 2025 showed 40 per cent of respondents planned to travel more, while 47 per cent expected to spend more on travel in the next 12 months. Some 68 per cent of business travellers said trade tensions would not impact their travel revenues are forecast to fall to $142 billion, with cargo growth slowing to 0.7 per cent and cargo yields expected to fall by 5.2 per cent. Trade policies are cited as a key costs are projected at $86 per barrel, leading to a fuel bill of $236 billion. Sustainable Aviation Fuel (SAF) production is forecast to double to 2 million tonnes, though still representing 0.7 per cent of total airline fuel use. SAF costs remain higher than traditional jet criticised fuel suppliers, stating, 'Fuel suppliers must stop profiteering on the limited SAF supplies available and ramp up production to meet the legitimate needs of their customers.'The Carbon Offsetting and Reduction Scheme for International Aviation ( CORSIA ) is expected to cost airlines $1 billion in 2025. Only Guyana has issued eligible credits under the expansion continues to face constraints. The aircraft backlog has exceeded 17,000 units, with the average fleet age now at 15 years. Aircraft deliveries in 2025 are expected at 1,692 units, down from previous commented, 'Manufacturers continue to let their airline customers down. Every airline is frustrated that these problems have persisted for so long.'
Muscat Daily
5 days ago
- Business
- Muscat Daily
CAA, IATA hold workshop on sustainable aviation emissions in Oman
Muscat – In collaboration with the International Air Transport Association (IATA), the Civil Aviation Authority (CAA) on Wednesday hosted a workshop focused on the implementation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) in the Sultanate of Oman. Titled 'Understanding and Implementing the Requirements of CORSIA in the Sultanate of Oman,' the workshop aimed to raise awareness among key stakeholders about the global framework and its potential to deliver both economic and environmental benefits for the country. CORSIA, a programme under the International Civil Aviation Organization (ICAO), is designed to cap carbon dioxide emissions from international flights at 2020 levels by requiring airlines to offset any increase in emissions beyond that baseline. The workshop highlighted the alignment of CORSIA with international climate agreements, particularly the United Nations Framework Convention on Climate Change (UNFCCC) and Article 6 of the Paris Agreement. Participants were briefed on compliance requirements and the broader implications of CORSIA on the global carbon market and sustainable development initiatives. Key sessions focused on identifying and developing eligible projects under the CORSIA framework, with case studies from the Global Carbon Council and examples of Omani initiatives. These discussions explored ways to integrate local offsetting efforts with international mechanisms, encouraging collaboration among regulators, airlines, and project developers. The event also served as a platform to explore opportunities to expand Oman's participation in the global carbon market through aviation-related sustainability initiatives. It aimed to equip stakeholders with the knowledge and tools to develop, endorse, and implement CORSIA-compliant projects that align with the country's climate and development goals. The outcomes of the workshop are expected to support the creation of new carbon offset projects in Oman, foster cross-sector cooperation, and strengthen the nation's environmental credentials in line with best global practices.
Sharjah 24
16-05-2025
- Business
- Sharjah 24
UAE representative elected Vice Chair of ICAO Council's CEC
UAE's growing leadership in aviation This election represents a significant milestone in the UAE's increasing leadership within international civil aviation. It underscores the country's active contributions to promoting sustainability and climate action in the sector. Commitment to environmental sustainability Saif Mohammed Al Suwaidi, Director-General of the UAE General Civil Aviation Authority (GCAA), stated, 'This election reaffirms the UAE's deep commitment to environmental sustainability in aviation.' He emphasized that Mohammad Salem's appointment reflects the international recognition of the UAE professionals' impactful roles within ICAO. The UAE is dedicated to collaborating with ICAO Member States and global partners to achieve shared environmental goals. Advancing ICAO's climate strategy The appointment comes as ICAO intensifies its efforts to lead the global aviation sector toward a sustainable future, aiming for net-zero emissions. The UAE has been a proactive participant in ICAO's environmental agenda by advocating for cleaner energy sources, such as Sustainable Aviation Fuel (SAF) and Lower Carbon Aviation Fuels (LCAF), and launching innovative emissions reduction initiatives. As Vice Chair of the CEC, Salem will play a pivotal role in advancing ICAO's climate strategy. This includes supporting the effective implementation of initiatives like the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and working towards ICAO's historic goal of achieving net-zero carbon emissions in aviation by 2050.
Scoop
30-04-2025
- Business
- Scoop
Air New Zealand Announces New 2030 Emissions Guidance In Move Towards Greater Transparency
Air New Zealand has published its first 2030 Emissions Guidance today, and says it expects to reduce net 'well-to-wake' greenhouse gas emissions from jet fuel by 20 to 25 per cent by 2030, from a 2019 baseline. This new approach replaces the airline's 2030 Science Based Target which it withdrew from in 2024. The new 2030 Emissions Guidance aims to provide a regular and transparent assessment of Air New Zealand's progress towards its 2050 net-zero carbon emissions target. The Emissions Guidance will be updated annually in August in the airline's Climate Statement. Each update will reflect the airline's expected net emissions by 2030 based on detailed modelling of its decarbonisation progress, external market conditions, and global and domestic policy developments. Chief Sustainability and Corporate Affairs Officer Kiri Hannifin, says Air New Zealand is acutely aware of aviation's impact on the climate and nature, and is committed to high levels of transparency in a rapidly evolving environment. 'Air New Zealand remains committed to net zero carbon emissions by 2050 and we are taking practical steps today towards achieving that ambition. Having a comprehensive and annually updated outlook of our emissions trajectory to 2030, and a clear understanding of how we can get there, is a critical stepping stone. 'Rather than setting an emissions target that remains static, regular emissions guidance will give our investors and customers an up-to-date and clear view of our expected emissions trajectory, including the impact from external risks and opportunities. The reality of decarbonising an industry like aviation is there is uncertainty and are many factors we have limited control over, such as the availability of sustainable aviation fuel (SAF) at reasonable prices. Many of our assumptions are evolving rapidly. 'We hope there may be opportunities to move faster as new technologies and the SAF industry grows, so our 2030 emissions guidance could be updated to reflect any upside as well,' says Kiri Hannifin. In developing the 2030 Emissions Guidance, Air New Zealand has undertaken a thorough analysis of the airline's specific circumstances, external environment, and key decarbonisation levers: · Sustainable aviation fuel (SAF): increasing use as global mandates, supply and affordability scale. · Fleet and network optimisation: implementing the airline's fleet and network plan, including continued fleet renewal to replace older aircraft with more fuel-efficient aircraft. · Operational efficiency improvements: improving fuel efficiency through technology and best practice. · Carbon credits: using carbon credits to meet international regulatory requirements (specifically CORSIA, the Carbon Offsetting and Reduction Scheme for International Aviation), and to a lesser extent using high integrity carbon removals. · There are no anticipated decarbonisation impacts from Next Generation Aircraft in the period to 2030. The 2030 Emissions Guidance is integrated with the airline's long-term fleet and network plan through to 2030 and will be updated in August each year as part of its Climate Statement.
