Major companies including BlackRock, Ripple, Samsara Inc. and Block Inc. have purchased sustainable aviation fuel certificates (SAFc) to compensate for their business travel footprints by adding sustainable fuel to Alaska Airlines flights.
The deal signed on Monday (Nov. 18) signals growing corporate demand for emerging aviation climate technology.
Commenting on the investments, Diana Birkett Rakow, Senior Vice President of Public Affairs and Sustainability at Alaska Airlines said:
Alaska Airlines is all-in on advancing the market for sustainable aviation fuels (SAF), a critical element in the path to decarbonize aviation.
Ken Weber, VP of Social Impact & Sustainability at financial services provider Ripple said:
Ripple remains committed to accelerating the transition to a low-carbon economy, and joining the push for sustainable aviation fuel is an important step in our journey to net-zero carbon by 2030.
What is sustainable aviation fuel?
Sustainable aviation fuel (SAF) is a liquid fuel that reduces CO2 emissions by up to 80%, according to an International Air Transport Association (IATA) study.
SAF is made from renewable or waste sources, including waste fats, oils and greases, discarded rubbish, or agricultural and forest residues. It can also be made synthetically using carbon capture processes.
The IATA estimates that SAF could constitute 65% of the emission reduction required for aviation to reach net-zero by 2050, provided that SAF production increases significantly.
Though SAF production tripled to 600 million litres in 2023, it represents only 0.2% of global jet fuel use and is about 3-5 times more expensive than traditional jet fuel.
How do SAF certificates work?
By purchasing SAF certificates, businesses add high-integrity fuel to SAFc partner airline flights. They can then make greenhouse gas emissions reduction claims on their climate disclosures in line with corporate sustainability goals.
The Sustainable Aviation Buyers Alliance (SABA), which coordinated Monday’s investments, has existing SAFc commitments from participants such as AstraZeneca, Autodesk, Bain & Company, BCG, Deloitte, JPMorgan Chase, Live Nation, McKinsey & Company, Meta, Morgan Stanley, Netflix, Novo Nordisk, Samsung Biologics, Watershed, and Workday. These deals equate to roughly 500,000 tonnes of abated CO2 emissions.
Alongside Alaska Airlines, SABA also partners with JetBlue and Southwest Airlines.
As businesses and the aviation industry seek sustainable emissions solutions, the future of SAFc looks promising.
What do you think is the best way to reduce harmful aviation emissions? Let us know in the comments below!
