European aviation industry warns of €800bn bill to reach net zero
European aviation faces more than E800b in extra costs to reach net zero emissions by 2050, according to industry estimates that highlight the challenge facing the sector as it decarbonises. The industry has committed to hitting net zero carbon emissions through a mix of new technologies, notably alternative fuels, as well as carbon offsets and more efficient aircraft, engines and air traffic management. Reaching net zero would need “considerable additional efforts compared to business as usual”, and would cost E820b over a 32-year period from 2018 to 2050, according to a report commissioned by airline industry bodies. By far the biggest expense would be €441bn spent on cleaner fuels, which are not made from fossil fuels but from feedstocks such as animal fat, cooking oil or household waste, the report said. These “sustainable aviation fuels” can reduce the total emissions from a flight by about 70%, but are more expensive than jet fuel and are only produced in extremely limited quantities. The report by research groups SEO Amsterdam Economics and the Royal Netherlands Aerospace Centre was commissioned by a group of aviation lobby groups including Airlines for Europe (A4E) and airport trade body ACI Europe. It warned that aviation companies including airlines and airports would be unable to fund the climate transition alone, partly because the industry has struggled to be consistently profitable in the past. “Since [profits] are historically low due to high levels of competition and compounded by recent crises, the absorption capacity by the sector, in particular that of European airlines and hubs is expected to be low,” the report said. <br/>
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European aviation industry warns of €800bn bill to reach net zero
European aviation faces more than E800b in extra costs to reach net zero emissions by 2050, according to industry estimates that highlight the challenge facing the sector as it decarbonises. The industry has committed to hitting net zero carbon emissions through a mix of new technologies, notably alternative fuels, as well as carbon offsets and more efficient aircraft, engines and air traffic management. Reaching net zero would need “considerable additional efforts compared to business as usual”, and would cost E820b over a 32-year period from 2018 to 2050, according to a report commissioned by airline industry bodies. By far the biggest expense would be €441bn spent on cleaner fuels, which are not made from fossil fuels but from feedstocks such as animal fat, cooking oil or household waste, the report said. These “sustainable aviation fuels” can reduce the total emissions from a flight by about 70%, but are more expensive than jet fuel and are only produced in extremely limited quantities. The report by research groups SEO Amsterdam Economics and the Royal Netherlands Aerospace Centre was commissioned by a group of aviation lobby groups including Airlines for Europe (A4E) and airport trade body ACI Europe. It warned that aviation companies including airlines and airports would be unable to fund the climate transition alone, partly because the industry has struggled to be consistently profitable in the past. “Since [profits] are historically low due to high levels of competition and compounded by recent crises, the absorption capacity by the sector, in particular that of European airlines and hubs is expected to be low,” the report said. <br/>
