Today's Edition
HASSOUNA AL TAYEB (ABU DHABI)
The global aviation sector has been ringing the alarm bell, warning travellers of the day when they will have to pay part of the bill for reducing carbon emissions, amounting to $5 trillion.
It seems that the time has come. Meanwhile, the Singaporean government announced the imposition of a tax on travel tickets to provide the money necessary to purchase high-cost sustainable aviation fuel, while Malaysian authorities gave the green light to airlines to impose carbon fees on travellers starting in April 2024.
In Europe, during the current year, airline companies will cut about 25% of emissions allocations, in the first step in a series of reductions that are expected to be added to ticket prices. While policies vary from one country to another, the main goal remains the green credentials of the aviation sector, which has relied for nearly 100 years on fossil fuels to operate its aircraft.
Airlines executives fear that if greater efforts are not made to reduce emissions, the companies may be subject to fines, reduce the number of flights, or be banned from flying completely, according to the Washington Post newspaper.
Sustainable aviation fuel, extracted from waste oil or agricultural raw materials, is considered the main path that airlines should take to reach their goal of achieving zero carbon emissions by the year 2050. But this new fuel is not available in sufficient quantities, and its price may be twice that of regular kerosene, which means that airlines have no choice but to add this cost to passengers.
This also means a short break for travellers, who have been affected by the rise in prices since the return to air travel following COVID-19. Travelers currently have to pay more money to neutralise the carbon footprint of flying as well. For example, Air New Zealand aims for sustainable fuels to make up 20% of its total consumption by 2030, which represents one of the most ambitious goals of its kind in the entire world.
As for airlines such as Delta, Qantas, and Cathay Pacific, they are among those targeting 10% by the end of the current decade. Sustainable aviation fuel can contribute to reducing emissions by up to 80%, especially on long flights, which are the main source of pollution, considering that electric aircraft do not have the ability to travel long distances.
Over time, air travel fees or authorisation procedures to purchase or provide sustainable aviation fuel are spreading from Japan and Singapore to the European Union and the United Kingdom.
These measures are designed to accelerate emissions reductions and reassure green fuel suppliers that there are buyers for their relatively expensive new product.
Singapore plans to supply its aircraft departing from all its airports with about 1% of sustainable fuel by the year 2026, increasing the percentage to 3% and about 5% by the year 2030. In Malaysia, the authorities, starting in April 2024, allow airlines to impose carbon fees, whether for the purpose of buying sustainable fuel or to finance carbon offsets.
Under the European Union’s refuel initiative (ReFuelIEU), kerosene fuel should be mixed with 2% sustainable fuel during the next year 2025, with the percentage gradually increasing to reach about 70% by 2050. Not only is the cost of sustainable fuel borne by the traveller, but also purchasing more fuel-efficient aircraft.
Qantas, for example, which began receiving the first 10 second-generation aircraft, announced an increase of between 2 and 3% in ticket prices on most domestic flights. IATA estimates that the global aviation sector needs investments of about $5 trillion, between now and 2050, to achieve zero carbon emissions, which means the traveller must contribute to this bill.
