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COINTURK FINANCE > Business > Air New Zealand Drops 2030 Carbon Reduction Target
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Air New Zealand Drops 2030 Carbon Reduction Target

Overview

  • Air New Zealand drops its 2030 carbon intensity reduction target.

  • The airline cites challenges such as fleet renewal and SAF availability.

  • Commitment to net zero carbon emissions by 2050 remains intact.

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Air New Zealand has announced its decision to abandon its 2030 science-based carbon intensity reduction target. The airline also revealed its withdrawal from the Science Based Targets initiative (SBTi). According to the company, the decision stems from challenges in meeting the necessary conditions for achieving the target, including constraints related to fleet renewal, sustainable aviation fuel (SAF) availability, and regulatory support. Despite this setback, the airline remains committed to its long-term goal of net zero carbon emissions by 2050.

Contents
Challenges to Achieving the 2030 GoalLong-term Commitments Remain

When Air New Zealand introduced the 2030 target in 2022, the aim was a 28.9% reduction in carbon intensity from a 2019 baseline. This objective was part of a larger initiative dubbed “Flight NZ0,” which included multiple strategies such as utilizing SAF, upgrading the fleet, and adopting zero emissions aircraft technologies. However, the airline has now cited several barriers such as the availability and affordability of SAF and delays in receiving new, more fuel-efficient aircraft.

Challenges to Achieving the 2030 Goal

In its latest announcement, Air New Zealand highlighted the multiple hurdles it faces in meeting its 2030 target. These challenges include the availability of new aircraft for fleet renewal and the affordability and availability of SAF. The company also noted that regulatory and policy support is lacking, making it difficult to achieve their ambitious goals. CEO Greg Foran pointed out that delays in fleet renewal could force the airline to keep its older, less efficient aircraft for a longer period.

Air New Zealand’s 2030 target was initially seen as a bold move, aligned with global efforts to reduce emissions in the aviation sector. In contrast, other airlines have faced similar challenges but have opted to adjust their timelines rather than completely withdraw their targets. While some airlines are also pushing for regulatory and policy support, Air New Zealand’s decision to drop its 2030 target entirely is a significant shift.

Long-term Commitments Remain

Despite the removal of the 2030 target, Air New Zealand has reaffirmed its commitment to the “Flight NZ0” initiative and its ultimate goal of net zero carbon emissions by 2050. The company intends to develop a new near-term target that better aligns with current industry challenges, particularly those related to aircraft and alternative jet fuel availability. This recalibration aims to ensure that the airline remains on a feasible path toward its long-term sustainability goals.

Air New Zealand’s Chair, Dame Therese Walsh, emphasized the airline’s ongoing commitment to transitioning away from fossil fuels and advocating for supportive regulatory and policy frameworks. The company believes that these steps are crucial for mitigating climate change risks both for the airline and the broader aviation industry in New Zealand.

Air New Zealand’s decision to withdraw its 2030 target underscores the complexities of achieving rapid carbon reduction in the aviation sector. While the airline continues to support long-term sustainability, the immediate challenges highlight the need for greater industry-wide collaboration, technological advancements, and supportive policies. Stakeholders in the aviation industry will need to address these barriers to ensure meaningful progress towards climate goals.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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