(Ecofin Agency) – The global plan drawn up for civil aviation aims for it to achieve carbon neutrality by 2050. An objective which highlights numerous challenges, including those of a financial nature. For IATA, this ambition will require $174 billion in average annual investment by companies.
Achieving zero carbon emissions in air transport by 2050 will require an average of USD 174 billion in annual investment by airlines, according to estimates from the International Air Transport Association.
In a report published at the end of September 2024, the civil aviation umbrella representing more than 200 carriers around the world gives an overall view of the components of this massive investment which includes, among other things, the costs of supplying sustainable aviation fuel ( SAF), new facilities for its production, purchases of new generation aircraft, the implementation of hydrogen technologies, and carbon emissions reduction and compensation systems for international aviation (CORSIA).
Over the period 2024-2050, the cumulative total investment needs to achieve this objective is nearly USD 4,700 billion. Sustainable aviation fuel alone represents 81% of this estimate, or nearly 3.8 trillion USD.
In Africa, the challenges to be met to help achieve this ambition are significant. In addition to the small size of the civil aviation market (around 2.1% of the global industry) which limits the attractiveness of the sector among investors, structural problems persist such as the quality of infrastructure, the lack of profitability of a good part of the operational companies, the lack of harmonization of sector policies, etc.
For example, the continent remains one of the regions of the world where SAF production is rare, despite the high potential for resources used in the composition of this clean fuel. However, IATA is optimistic about meeting this challenge. The growth forecasts announced in Africa could indeed stimulate the implementation of decisive measures and common strategies.
“IATA’s updated Net Zero policy and financing roadmaps make clear that decarbonization by 2050 is possible. To achieve this, all stakeholders, especially policymakers, need to collaborate more widely and act with greater urgency. To succeed, we need clear policy and financial frameworks that will support the needs of air transport in a way that is realistic and consistent with the massive changes that need to take place simultaneously across all economic sectors.” said Willie Walsh, CEO of IATA.
Henoc Dossa
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