Air New Zealand Abandons 2030 Carbon Target, Sets Precedent

Air New Zealand announced it will abandon its 2030 carbon emissions reduction target, becoming the first major airline to do so. The airline attributes this decision to difficulties in procuring new aircraft and securing sustainable aviation fuels (SAF).

“In recent months, and especially in the last few weeks, it has become apparent that potential delays to our fleet renewal plan pose an additional risk to the target’s achievability,” said Greg Foran, CEO, Air New Zealand, in a statement. Foran noted that the airline has been impeded by issues related to “the availability of new aircraft and the affordability and availability of alternative jet fuels.”

The airline had initially set a target in 2022 to reduce its carbon emissions by 28.9% by 2030 compared to 2019 levels. However, it now acknowledges that achieving this goal has become increasingly unrealistic. The global aviation industry, which was responsible for approximately 2% of global energy-related carbon emissions in 2022, according to the International Energy Agency (IEA), faces broader challenges in meeting its climate goals.

Air New Zealand is awaiting the delivery of eight Boeing 787 Dreamliners and five Airbus A320neo and A3201neo planes. Both Boeing and Airbus have reported production issues in recent months. Boeing has faced safety and production problems leading to delays, while Airbus has cited persistent supply chain issues as a reason for reduced delivery numbers. An Airbus spokesperson stated that the company does not “disclose customer delivery schedules”.

The airline is also facing challenges related to SAF, which is crucial for reducing aviation emissions. SAF is produced from waste products or plants that absorb CO2, offering a lower carbon footprint compared to traditional jet fuel. However, current SAF production capacity is insufficient to meet industry demand.

“The price of SAF is higher than traditional fuels, and there is not enough capacity to produce it at scale,” said Ellis Taylor from aviation analytics firm Cirium.

The industry-wide goal is to achieve net zero emissions by 2050, but the sector has struggled with scaling up SAF production and adopting more efficient aircraft designs. The IEA notes that “planned production capacity for sustainable aviation fuels will provide just a small fraction of jet fuel demand by 2027.”

The International Air Transport Association (IATA) has emphasized that while the 2050 net zero target remains attainable, it requires significant supportive measures from governments. “We need to scale up all solutions, including SAF production, as well as emerging technological solutions such as the use of hydrogen and carbon removals,” an IATA spokesperson said.