The International Air Transport Association (IATA) has unveiled its updated Policy and Finance Net Zero Roadmaps, offering more in-depth analyses and revealing four essential takeaways:

Achieving the energy transition within the air transport sector by 2050 is a realistic goal.

The investment required to make this transition aligns with the scale of previous efforts to develop new renewable energy markets.

Success hinges on a unified approach from policymakers across the globe.

Time is running out to collaborate on the aviation industry’s energy transition. Every delay represents a missed opportunity.

“The updated IATA Policy and Finance Net Zero Roadmaps make it clear that decarbonization by 2050 is possible. They also sound a warning bell that, to achieve this, all stakeholders, particularly policymakers, must collaborate more broadly and act with greater urgency. To be successful, we need clear policy and financial frameworks that will support air transportation’s needs in a way that is realistic and coherent with the massive changes that must take place simultaneously in all economic sectors,” said Willie Walsh, IATA’s Director General. 

The Policy Roadmap underscores the critical need for strategic sequencing of policies and emphasizes the importance of global collaboration, extending beyond the aviation industry. It acknowledges that there is no one-size-fits-all approach, and policies must be inclusive to enable all countries to participate in the future global Sustainable Aviation Fuel (SAF) market.

Key takeaways include:

Immediate Action: It is crucial to unlock Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Eligible Emissions Units (EEUs) and prioritize SAF in refinery product mixes.

Strategic Policy Sequencing: A combination of technology-driven and demand-driven measures is vital. Governments should establish global, transparent, and liquid markets for cleaner aviation energy.

Transformative Collaboration: Cross-sector cooperation among governments, aviation, and other industries is essential to break down barriers and promote investments in new technologies, SAF, and infrastructure. The decarbonization of air transport is part of the larger global energy transition. Establishing a global SAF accounting framework is necessary to ensure transparency and avoid double counting of environmental benefits. Addressing fragmentation in SAF certification and carbon offsetting processes should also be a priority.

The Finance Roadmap provides a comprehensive overview of the necessary investments to achieve net-zero CO2 emissions by 2050 and outlines the financial burden airlines will face in adopting new solutions. It highlights the number of biorefineries needed and stresses that their output will benefit energy transitions across all industries, helping foster unity of purpose among policymakers.

Key takeaways include:

Required Average Annual Investments: Achieving net zero by 2050 will require an average of USD 128 billion annually for new facility development over the next 30 years. This is significantly lower than the average annual investment of USD 280 billion in solar and wind energy from 2004 to 2022. Governments could accelerate progress by redirecting subsidies from fossil fuels toward renewable energy production, including SAF.

Annual Transition Costs: The additional cost of procuring SAF, hydrogen, and other key technologies is estimated at USD 1.4 billion in 2025, potentially rising to USD 744 billion by 2050. These figures underline the urgency and scale needed to bring solutions to market to achieve net zero CO2 emissions.

“The costs and challenges associated with the energy transition are large, but the opportunities are even greater. Countries have an opportunity to build new industries in agriculture and energy, and to benefit from the catalytic growth impact of sustainable air transport. To realize the opportunities, we need all minds to unite in this mission, and all policymakers, multilateral organizations, investors, solution providers, and the air transport industry to work together. Such transformative collaboration can pool resources and target meaningful action for greater impact. This is what is needed to deliver a sustainable air transport industry by 2050,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.

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