Charting the Path to Net Zero: IATA's Roadmap for Sustainable Air Travel

The International Air Transport Association (IATA) has released updated Policy and Finance Net Zero Roadmaps, providing a comprehensive blueprint for the air transport industry's transition to a sustainable future. These roadmaps offer a detailed analysis of the feasibility, investments, and collaborative efforts required to achieve net zero carbon emissions by 2050.

Unlocking the Potential of Sustainable Aviation

The IATA roadmaps highlight four key conclusions that underscore the industry's commitment to decarbonization:

Feasible Energy Transition

The air transport industry's transition to sustainable energy sources is achievable within the 2050 timeframe. This ambitious goal is within reach, provided that all stakeholders, particularly policymakers, collaborate effectively and act with a renewed sense of urgency.

Comparable Investment Levels

The investments required to facilitate this energy transition are comparable to the sums engaged in the creation of new renewable energy markets in the past. This suggests that the financial resources and commitment necessary for success are within reach.

Policymaker Unity of Purpose

The success of the air transport industry's decarbonization efforts hinges critically on the unity of purpose among policymakers. Coordinated and coherent policy frameworks are essential to support the industry's needs and drive the necessary changes across all economic sectors.

Shrinking Window of Opportunity

The time available for stakeholders to join forces and drive the air transportation industry's energy transition is rapidly diminishing. Every delay in action represents a missed opportunity, underscoring the urgency for immediate and concerted efforts."The updated IATA Policy and Finance Net Zero Roadmaps make it clear that decarbonization by 2050 is possible. They also sound a warning bell that, to achieve this, all stakeholders, particularly policymakers, must collaborate more broadly and act with greater urgency," said Willie Walsh, IATA's Director General.

Charting the Policy Roadmap

The Policy Roadmap emphasizes the importance of strategic policy sequencing and the need for global collaboration, extending beyond the aviation sector. The recommendations recognize that a one-size-fits-all approach is not feasible, and policies must ensure the participation of all countries in the future global Sustainable Aviation Fuel (SAF) market.Key highlights of the Policy Roadmap include:Immediate Action: Unlocking the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Emissions Units (EEUs) and prioritizing SAF in the product mix at refineries.Strategic Policy Sequencing: Combining technology-push and demand-pull measures will be critical. Governments must also foster global, liquid, and transparent markets for cleaner aviation energy.Transformative Collaboration: Governments, the aviation sector, and all other sectors must work together to remove existing barriers and promote investment in new technologies, SAF, and infrastructure. This recognizes that air transport's decarbonization is part of the broader global energy transition. The creation of a global SAF accounting framework and addressing the fragmentation in certification processes for SAF and carbon offsets are also essential.

Financing the Transition

The Finance Roadmap provides a detailed view of the required investments to reach net zero CO2 emissions by 2050, as well as the costs involved for airlines in procuring the new solutions. By identifying the number of new biorefineries that need to be built and highlighting that their product output will benefit all industries' energy transition, the roadmap aims to focus policymakers' attention and promote the unity of purpose necessary for a successful transition.Key highlights of the Finance Roadmap include:Required Average Annual Investments: To reach net zero by 2050, the annual average capital expenditure needed to build the new facilities over the 30-year period is about USD128 billion per year, in a best-case scenario. This is significantly less than the estimated total sum of investments in the solar and wind energy markets at USD280 billion per annum between 2004 and 2022.Annual Transition Cost: The cost that comes on top of that of jet fuel as a result of procuring SAF, hydrogen, and other key levers is estimated at USD1.4 billion in 2025. In 2050, the transition cost could be as high as USD744 billion, based on IATA's analysis. These numbers highlight the need for speed and scale in bringing solutions to market to achieve net zero CO2 emissions."The costs and challenges associated with the energy transition are large, but the opportunities are even greater. Countries have an opportunity to build new industries in agriculture and energy, and to benefit from the catalytic growth impact of sustainable air transport. To realize the opportunities, we need all minds to unite in this mission, and all policymakers, multilateral organizations, investors, solution providers, and the air transport industry to work together," said Marie Owens Thomsen, IATA's Senior Vice President Sustainability and Chief Economist.