As It Gets Closer To Net 0, Qantas Will Gain An Advantage With A Climate Fund.

As the airline works toward its emissions reduction goals (Net 0), the Qantas Group will establish a climate fund with a capital of AUD$400 million to provide direct investments in sustainability projects and technologies.

The Qantas Climate Fund, which was made public as part of the Group’s Investor Strategy Day, will be the world’s largest aviation fund.

Qantas Investor Day
© Qantas

The Qantas Climate Fund

The Climate Fund will focus on research and development partnerships, direct investments in technologies and projects, and investment in managed sustainability funds that closely match the airline’s goals.

Qantas Group Chief Sustainability Officer Andrew Parker, said :

“Managing climate change is now built into how we do business and is a key part of our strategy through to 2030 and beyond.”

As it moves toward net 0 emissions by 2050,  Qantas has committed to:

climate fund commitment to reducing carbon emissions
© Qantas

Parker added that:

“We have already made progress towards our interim climate targets with sustainable aviation fuel powering our flights out of London, more fuel-efficient aircraft arriving every month and a mature carbon offset program.

The AUD$290 million partnership between Qantas and Airbus, which was established last year to spur the development of a domestic sustainable aviation fuel (SAF) industry in Australia, is included in the fund, along with an additional AUD$110 million from Qantas for other environmental initiatives like high-integrity carbon offsets, offshore SAF investments, and operational efficiency technologies.

Qantas is asking for expressions of interest from funding-seeking industries and businesses.

Mr Parker, said :

“Without the right policy settings and signals we will see investment, projects and feedstocks move offshore to places with specific policy support. We look forward to working with government and the rest of the industry to ensure we capitalise on this opportunity for Australia.”

A Mandate For Sustainable Fuel

Given that it can be used in today’s engines and fuel delivery infrastructure without any modifications, Sustainable Fuel (SAF) is the most significant tool airlines currently have to reduce their emissions.

Currently, Qantas purchases SAF from overseas suppliers, including 10 million liters for flights out of London in 2023 and 20 million liters per year for flights out of California starting in 2025. However, there is not local commercial-scale SAF industry in Australia.

Sustainable Fuel and overseas suppliers
© Bp

In order for the Qantas Group to fulfill its commitment to use 10% SAF in its overall fuel mix by 2030 and approximately 60% by 2050, domestically produced SAF will play a crucial role.

The Group is urging the Australian Government to implement a SAF blending mandate as part of a broader framework of industry policies, similar to those that have been announced in other jurisdictions, in order to encourage local production of SAF.

Parker, added :

“Governments around Australia are making important progress on working with industry to help decarbonise, and we welcome that. Creating markets for new fuels is a critical part of tackling climate change, which is why we’re today calling for a SAF mandate to be introduced to catalyse the development of the industry.”

The UK, Europe and Japan have set or proposed commands of somewhere in the range of 5 and 10 percent to be arrived at before the decade’s over and the US has set a 2030 creation focus of 3 billion gallons each year.

Advancement Towards Net 0

Parker concludes by saying,

“We need to turbocharge these efforts if we are to cut our carbon emissions by 25 per cent by 2030 and have net zero emissions by 2050.

A list of Net 0 achievements by Qantas GROUP:

  • One of the first airlines in the world to announce its commitment to net zero emissions by 2050 was the Group in 2019.
  • Environmental change contemplations have been coordinated into the Gathering’s monetary system, including thinking about the expense of carbon in monetary choices, and execution against environment targets has been connected to chief compensation from FY23 onwards.
  • An alliance framed with major corporate clients permits them to lessen discharges through practical flying fuel.
  • As part of efforts to increase fuel efficiency by 1.5% annually through 2030, a major fleet renewal program is underway.
  • The Fly Carbon Neutral program offered by Qantas allows passengers to offset their flights.
  • Qantas sent off a Green Level for regular customers in 2022, which has seen in excess of 400,000 regular customers make strides towards diminishing their natural impression.
  •  Discharge decrease targets and drives, the Gathering has resolved to zero single-use plastics by 2027 and zero general waste (barring quarantine squander) to landfills by 2030.

What are your thoughts on the future of Net 0 within the aviation industry? Let us know in the comments below!

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Samuel Ayobami Ojerinola
Samuel Ayobami Ojerinola
Aviation Reporter - With a deep background in travel including previous work for LoveHolidays, Omega and HRG, Samuel contributes news and analysis here at Travel Radar. Samuel also holds a BA degree in Travel & Tourism Management from the University of West London.