IBA's Sustainability Watch: February 2025

Environmental, Social, and Governance (ESG) issues are now seen as a key risk to aviation investments, and authorities worldwide are demanding more transparency and stricter reporting standards. It’s never been more important to understand the pathways to net zero emissions and their real-term impacts on all key players across the industry.

Each month, IBA’s ESG consulting team share key insights and the latest news from the growing world of sustainable aviation.

Gevo – A critical player in AtJ (Alcohol-to-Jet) SAF production??

Gevo Inc. is a leading producer of sustainable aviation fuel (SAF), utilising its proprietary ethanol-to-jet (ETJ) technology to convert renewable feedstocks, such as corn and biomass, into low-carbon jet fuel. They were the first globally to commercialise this SAF criteria and currently offers lifecycle emission reduction of 80% compared to Jet A.?

According to IBA’s SAF offtake chart, Gevo has secured long-term fuel agreements exceeding 7.5 million tonnes, including deals with Delta Air Lines, American Airlines, IAG and SAS. The company’s Net-Zero 1 facility in South Dakota, set to begin production in 2026, will generate 55 million gallons of SAF per year using wind-powered energy and carbon capture.?

Despite its potential, Gevo faces challenges, including high production costs, technological scalability, and competition from emerging e-fuels. However, with the Biden administration’s SAF tax credits and the EU’s SAF blending mandates, demand for Gevo’s fuel is expected to rise.?

The question remains: Will uncertainty in US climate policies hamper Gevo’s growth, or will reduced domestic competition allow it to thrive in international markets where SAF adoption is accelerating??

China's RX4E: A Milestone in Sustainable Aviation?

China has taken a significant step in sustainable aviation with the certification of its first all-electric aircraft, the RX4E. Developed by the Liaoning General Aviation Academy (LGAA), the four-seat, light propeller aircraft received Type Certification from the Civil Aviation Administration of China (CAAC) on 29 December 2024. This marks a breakthrough in electric aviation, as the RX4E is the first aircraft certified under China’s CCAR-23 regulations.?

With a maximum flight time of 1.5 hours and a range of approximately 300 km, the RX4E is designed for operations in regions with limited road infrastructure. Its innovative battery-swapping technology enhances operational efficiency. The aircraft is also 77% carbon fibre composite, reducing weight and improving energy efficiency.?

This certification paves the way for commercialisation, with global sales partner Volar Air Mobility planning expansion into 15 countries. Looking ahead, LGAA is also exploring a hydrogen-powered variant, further advancing green aviation.?

IBA Net Zero reports that China accounts for 11.6% of global aviation emissions. Initiatives like the RX4E and China’s ambitious new SAF mandate are crucial in driving the sector’s collective push towards sustainability.?

IBAs View and Key Takeaways from the European Aviation Environmental Report 2025?

The European Aviation Environmental Report 2025 highlights both the progress and challenges in decarbonising the aviation sector. While CO? emissions have declined since 2019, non-CO? effects, noise, and SAF adoption hurdles remain critical issues. Policy measures, technological advancements, and improved air traffic management are driving change, but significant efforts are still needed to meet net-zero goals. At IBA, our data-driven insights help airlines, financiers, and regulators navigate these complexities, ensuring informed decision-making for a more sustainable aviation future. Read the full IBA analysis here: European Aviation Report 2025 | IBA Group.

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