Air New Zealand Becomes First Major Airline to Scrap Its 2030 Climate Goal

Air New Zealand canceled its 2030 carbon emissions reduction goals, blaming "challenging" governmental and regulatory circumstances, a shortage of alternative fuel, and delays in the production of new aircraft. This was the most high-profile reversal of an airline's pledge to a UN framework for corporations to stay on track to meet the Paris Agreement on emissions reductions, and it highlighted the challenges facing airlines and policymakers in reducing aviation emissions. The national carrier is one of New Zealand's largest companies by revenue.

Following an announcement in 2022 that it was the second airline globally to have its plans approved by the United Nations Science-Based Targets initiative aviation framework, Air New Zealand made a dramatic U-turn with this update. With a 16.3 percent decrease in absolute emissions, it promised to reduce carbon emissions by 28.9 percent by 2030 as compared to a baseline of 2019.

“In keeping with the Paris Agreement, Air New Zealand stated that it remains dedicated to achieving net zero carbon emissions by 2050. To?"better reflect the challenges relating to aircraft and alternative jet fuel availability," the carrier will set new "near-term" emissions reduction objectives,” stated in a written statement, CEO Greg Foran.

According to Foran, challenges with global manufacturing and supply chains may impede Air New Zealand's fleet's transition to more fuel-efficient aircraft. The global and domestic legislative settings, as well as the "affordability and availability of alternative jet fuels," are also "outside the airline's direct control," he added.

The aviation industry is one of the hardest to decarbonize and contributes significantly to climate change.?With its rapid growth in recent decades, aviation is expected to account for 2% of the world's energy-related carbon emissions in 2022, more than any other method of transportation, including sea, rail, and road.

According to the International Energy Agency, technical steps about?low-emission fuels, upgrades to engines and airframes, and demand-restraint strategies will all be necessary to slow down the rise of emissions from the aviation industry?to meet its 2050 net-zero emissions target.