Aviation

Sector Importance for Sustainable Finance:

Overall aviation represents approximately 2-3% of global GHG emissions and is also classified as a hard to abate sector.

Like many other sectors there is no one silver bullet to solve the decarbonization issue in aviation.  Solutions range from sustainable aviation fuel, implementing new aircraft design, innovations in aircraft propulsion and a variety of our actions.

Aviation is still a crucial form of transport to connect the world hence we will need to see how we can decarbonize this overtime especially for long haul flights where we cannot use emerging technologies such as electrification and batteries.

Talking Points

  • Should we just stop flying which will help solve the problem?
  • Should we take alternate forms of transport (such as rail) where possible?
  • Should we allow CORSIA program which relies heavily on carbon offsets to compensate for growth in emissions from the sector?
  • Is there enough biofuel to create sustainable aviation fuel and does this compete with important food production?

Useful Links:

https://www.climateaction100.org/approach/global-sector-strategies/aviation/

https://www.iea.org/fuels-and-technologies/aviation

https://sciencebasedtargets.org/sectors/aviation

https://www.transitionpathwayinitiative.org/sectors/airlines

https://www.weforum.org/reports/a356c865-311e-45ca-845d-efe5f762a820

Previous Transactions:

  • Ethihad: Transition Linked Sukuk
  • Ethihad: Sustainable Linked Loan
  • ANA: Green and Social Bond
  • JetBlue: Sustainability Linked Loan
  • BA: Sustainability Linked Bond

 

Last modified: December 6, 2021

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