The International Air Transport Association (IATA) has reaffirmed the feasibility of the aviation industry achieving net zero carbon emissions by 2050 but emphasised the importance of global collaboration. During the World Sustainability Symposium in Miami this week, IATA published new analysis and roadmaps outlining the financial and policy challenges of this transition.
IATA’s Director General, Willie Walsh, stated: “The updated IATA Policy and Finance Net Zero Roadmaps make it clear that decarbonisation 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.”
Key to the plan is the development and large-scale production of sustainable aviation fuel (SAF), which is expected to account for two-thirds of the sector’s emissions reduction by 2050. However, IATA warns that the costs of producing alternative fuels are substantial. Building the necessary production facilities alone is estimated to cost $128 billion annually in a best-case scenario.
Additionally, the cost of purchasing alternative fuels is projected to rise dramatically, from US$1.4 billion in 2025 to as much as US$744 billion by 2050.
Marie Owens Thomsen, IATA’s senior vice president of sustainability and chief economist, highlighted the broader economic opportunities, saying: “Countries have an opportunity to build new industries in agriculture and energy, and to benefit from the catalytic growth impact of sustainable air transport.”
IATA also noted that there is “no one-size-fits-all solution” to decarbonising aviation and called for flexible policies that allow all countries to participate in the future market for alternative aviation fuels.