Our thinking

A bumpy flight

2 August, 2024

Air New Zealand has scrapped its goal of cutting emissions by 29% by 2030, abandoning the Science Based Targets initiative and choosing instead to develop a more realistic short-term target. The company blames limited availability of new, fuel-efficient planes, the high cost and scarcity of alternative jet fuels, and weak regulatory support.

And they’re not wrong. The aviation industry, accounting for roughly 2.5% of global emissions, faces some major challenges to decarbonise.

Despite stating that Air New Zealand remains committed to net-zero emissions by 2050, an industry-wide goal, the slashing of short-term targets reflects a broader struggle in the industry. The current infrastructure and technological progress aren’t keeping up with ambitious carbon reductions, leaving carriers overly reliant on offsets to meet targets. Concerningly, the International Energy Agency (IEA) projects that by 2027, sustainable aviation fuel (SAF) production will barely scratch the surface of demand, making the transition even tougher, a challenge we wrote about in a previous Friday 5.

Without serious investment and stronger policies, there’s a risk that more airlines will step back from their sustainability goals. And while there is something commendable in ensuring targets are pragmatic rather than blindly sticking to a target which will not be met, this must be a last resort after exhausting all options. We hope this is warning sign and encourages concerted action from the industry and governments to fast-track sustainable solutions, but we’ll have to wait and see.

By Budd Nicholson