Air New Zealand Withdraws from 2030 Carbon Reduction Commitment

Air New Zealand (NZ, Auckland International) has officially withdrawn from its 2030 science-based carbon intensity reduction target and has exited the UN-backed Science Based Targets initiative (SBTi). This move makes it the first major airline to step back from its established medium-term environmental goals.

The airline disclosed in a July 30 filing with the New Zealand Stock Exchange that multiple factors influenced this decision, including the unavailability of new aircraft and viable alternative jet fuels, along with insufficient local and international policy support and regulations. Additionally, anticipated delays in fleet renewal due to global manufacturing and supply chain disruptions pose significant risks to achieving the set targets.

Greg Foran, CEO of Air New Zealand, expressed concerns over the practicality of the 2030 target, noting that the airline might have to extend the service life of its current fleet longer than initially planned. This adjustment comes as newer, more fuel-efficient aircraft face delays in delivery.

Previously, Air New Zealand had committed to ambitious sustainability goals, which included integrating sustainable aviation fuel for 10% of its total fuel uplift by 2030 and aiming for a 28.9% reduction in carbon intensity compared to 2019 levels. However, as early as last year, Foran had indicated that achieving these objectives set by the SBTi in 2022 would be challenging, acknowledging that external factors largely beyond the airline’s control were significant contributors.

Compounding these challenges, a notable setback occurred when Universal Hydrogen, a green fuel start-up and partner of Air New Zealand, ceased operations in late June after failing to secure additional investment. The company had previously demonstrated a hydrogen fuel cell-propelled flight using a 40-passenger ATR aircraft in 2023, which had been a part of Air New Zealand’s strategy to meet its carbon emissions goals.

The change in government in New Zealand in October 2023 has also impacted environmental advocacy, with the new centre-right administration scaling back several of the previous government’s more ambitious environmental targets.

Despite these setbacks, Air New Zealand reaffirms its commitment to the airline industry’s broader goal of achieving net zero emissions by 2050. The airline is currently in the process of formulating a new near-term climate target, aiming to align its operational capabilities with sustainable practices within the constraints of current global economic and environmental challenges.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com