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Climate & Environment
05 August 2024

Air New Zealand Leads Change By Dropping 2030 Emissions Target

Challenges with fuel supplies and aircraft delays prompt the airline to reassess its climate strategies

Air New Zealand has made headlines recently by becoming the first major airline to scrap its 2030 carbon emissions target. This decision was triggered by challenges in securing new, more efficient aircraft and affordable sustainable jet fuel. Such moves bring to the forefront the ongoing struggles within the aviation industry concerning climate change and emissions reduction.

The airline's Chief Executive Officer, Greg Foran, has stated, "It has become apparent...that potential delays to our fleet renewal plan pose an additional risk to the target's achievability." This candid acknowledgment paints a picture of the increasing pressures facing airlines as they attempt to balance operational needs with ambitious environmental goals.

Originally, Air New Zealand had set forth its goal to cut carbon emissions by nearly 29% from 2019 levels by 2030—a target significantly more aggressive than the global industry's collective aim of reducing emissions by just 5% during the same period. However, the airline is now working on devising a new short-term goal and reiterates its commitment to achieving net-zero emissions by 2050.

Remarkably, the aviation sector accounts for approximately 2% of global carbon emissions, and the challenges of decarbonizing the industry are considerable. Air New Zealand's retreat from its previous emissions goal reflects broader troubles across the aviation sector, many of which are rooted in manufacturing delays and limited access to Sustainable Aviation Fuels, or SAF.

Despite industry aspirations, the production of SAF has proven to be inadequate to meet current demand. Not only are these fuels pricier than traditional jet fuels, but there also seems to be insufficient capacity to produce them at scale. Ellis Taylor, of the aviation analytics company Cirium, highlighted, "We need scale-up of all solutions including SAF production as well as emerging technological solutions including the use of hydrogen and carbon removals."

While Air New Zealand's decision might seem disappointing, it's worth noting they have committed to work actively with their industry peers and regulators to establish supportive measures to help reduce emissions ideally across the aviation sector. This involves improving fuel efficiency and production of alternative fuels, which collectively are key components for future sustainability.

The airline is not the only one facing difficulty on this front. The aerospace giant Boeing has publicly dealt with several production issues, affecting timely deliveries of new jets. These include complications related to the supply chain and the scrutiny it has faced following major incidents involving its aircraft, such as the notorious 737 MAX crashes.

Boeing recently agreed to plead guilty to criminal fraud conspiracy charges after being found to have violated reforms put forth after its previous safety scandals, raising concerns about the comprehensive reliability of new aircraft being rolled out.

Overall, Air New Zealand's situation sheds light on just how challenging it can be for airlines to balance meeting sustainability goals with operational realities. The pressure is on not just for Air New Zealand, but for the aviation industry as a whole, to navigate these complex challenges moving forward.

Air New Zealand's motions stir up critical questions about the feasibility of ambitious climate targets. The airline remains committed to explore all avenues for transitioning from fossil fuels, advocating for appropriate global and domestic regulatory settings to facilitate this shift. But as the airline confirms its strategy and timeline going forward, the fundamental question persists: can the aviation industry meet its ambitious net-zero goals by mid-century, or will the realities of supply chain issues and fuel shortages stymie these efforts?

Exploring the dynamics at play serves as a reminder of the importance of solid infrastructure and policy setting for achieving climate aspirations. Fully functional regulatory frameworks combined with emerging technological solutions will be pivotal to helping airlines meet their ambitious targets, providing insights and pathways not just for Air New Zealand, but for the global aviation community.