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technology demonstrator aircraft flying by
2025, the OEM unveiled, in November last
year, the Energia family of concept aircraft
which, when it becomes a reality, will help the
industry achieve its goal of net-zero carbon
emissions by 2050.

An Achievable Goal

Bringing aviation on a path to net-zero emis-
sions by 2050 is possible, says Robin Riedel,
partner and co-leader, McKinsey Center for
Future Mobility “Achieving carbon-neutral
growth through 2030 would require US$40
billion to US$50 billion in funding annually,
and about US$175 billion would be required
through 2050,” says “Making Net Zero
Aviation Possible,” a report on decarboniz- responsibility. And among the most important things that gov-
ing aviation by Mission Possible Partnership ernments should do is incentivizing the production of sustainable
(MPP), in which McKinsey & Company is a aviation fuels (SAF). Airlines have bought every drop of SAF that
knowledge partner. “About 80–90 percent of is available. Projects are underway that will see a rapid increase
these investments would go to the produc- in SAF production over the next years. We see SAF contributing
tion of SAFs. The remainder would go to the to 65 per cent of the mitigation needed to achieve net zero in
development of battery-electric, hybrid-elec- 2050. That will require governments to be much more proac-
tric, and hydrogen aircraft, as well as the tive,” he says.
renewable electricity and green-hydrogen
production plants required to power them,” One Step at a Time
the report adds.
The European Union has decided to phase in a 2 per cent blend
There is a concerted effort to get govern- of biofuel in aviation fuel by 2025, up to 5 per cent by 2030 and
ments to support airlines as they strive to 63 per cent by 2050. The Sustainable Skies Act, introduced by
achieve their goal. A high-level meeting of the U.S. Congress in May 2021, aims to boost incentives to use
the International Civil Aviation Organization SAF. A complimentary proposal also includes a US$1Billion grant
(ICAO), held in July this year, expressed sup- over five years to expand the number of SAF producing facilities
port for a long-term aspirational goal (LTAG) in the U.S. In September last year, the Biden administration
of net-zero aviation carbon emissions by announced a goal to increase the production of SAF to at least
2050. The LTAG is expected to be formally 3 billion gallons per year by 2030.
established at the 41st ICAO Assembly to be
held from Sept. 27-Oct.7 this year. There are government initiatives being launched in the Asia
Pacific as well. In November last year, India started work on
To fulfill aviation’s net-zero commitment, an the country’s first zero-emission international airport, the Noida
annual production capacity of 449 billion International Airport. The first of four phases of the airport will
liters of sustainable aviation fuel (SAF) would be completed by 2024. Earlier this year, Japan set a goal of
be required as it is projected to account for replacing 10 per cent of domestic airlines’ fuel use with SAF by
65 per cent of aviation’s carbon mitigation in 2030. A public-private council, set up by the government in April
2050. While SAF’s annual production is only to set up an SAF supply network, includes All Nippon Airways
a miniscule 125 million liters, this is expected (ANA) and Japan Airlines – Japan’s two biggest airlines, airport
to jump to 5 billion by 2025. operators and oil refining company Eneos Holdings. Japanese
engineering company JGC Holdings and petroleum wholesaler
According to the International Air Transport Cosmo Oil will begin commercial production of SAF for the first
Association (IATA), it is imperative for govern- time in 2025. In April, New Zealand and Singapore signed a
ments to help the aviation industry achieve bilateral arrangement for cooperation in sustainable aviation.
its goal of net-zero carbon emissions by
2050. “A key to our success will be govern- Walsh is pleased with the green initiatives being undertaken in
ments sharing the same vision,” says IATA the Asia-Pacific region. “Singapore’s cross industry International
Director General Willie Walsh. “Achieving Advisory Panel on a sustainable aviation air hub is a positive
net zero requires everyone to shoulder their example for other states to adopt,” he says.

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