Decarbonizing and offsetting emissions in the airline industry: Current perspectives and strategies

Abstract

The Sixth Intergovernmental Panel on Climate Change Assessment Report underscores incremental progress in climate mitigation policies since 2014. Despite these efforts, the report indicates that global temperatures are likely to surpass the critical 1.5 °C threshold within the 21st century. In this context, the aviation industry, responsible for 2.8 % of global carbon dioxide emissions, faces challenges in meeting its net-zero emissions target by 2050. Through a mixed methods approach that includes expert interviews with 12 executive staff from airlines and airports and a targeted literature review, our research provides original data on means and challenges to decarbonize the aviation industry in the SEAO region. The findings reveal that significant hurdles persist while the aviation sector is actively pursuing decarbonization strategies, such as enhancing operational efficiency, adopting effective carbon offsetting measures, and transitioning to sustainable aviation fuels. Notably, using sustainable aviation fuels holds promise, potentially reducing carbon emissions by up to 70 %. However, its current contribution to total consumed jet fuel remains below 1 %. The industry is taking steps to address this by optimizing flight paths, schedules, and making strategic investments to decrease the costs associated with sustainable aviation fuels. Our qualitative data also underscores the influence of external factors, including investor pressure, national and international regulations, and a growing demand from environmentally conscious travellers for cleaner transport alternatives. Failure from airline industries to adopt more sustainable and efficient practices could lead to increased operating costs and revenue loss as corporate clients and customers increasingly seek greener transportation options.