Aviation News International – Ireland can take a leading role in the aviation’s push towards net zero carbon emissions by 2050 if it introduces the right policies and incentives, according to a new report on the global aviation sector published by PwC.
The PwC 2024 Aviation Industry Review & Outlook report points out that more than 60pc of the world’s leased aircraft are managed from Ireland and that 14 of the world’s top 15 lessors are located in the country.
The continued development of sustainable aviation fuel and its production is a key element of helping the world’s airline industry achieve net zero carbon emissions by 2050. Combined with new technology aircraft, it can help airlines reach the goal even as global air passenger numbers continue to grow.
“Ireland, as the leading centre for aircraft leasing globally and home to Europe’s largest airline, has the opportunity to take a leading role in the aviation sector’s journey to net zero by 2050,” according to Brian Leonard, the leader of PwC Ireland’s aviation finance unit.
“This can include tax relief for investments into projects working on the development of new sustainable aviation fuel technologies,” he added. “The scale of change and innovation required to arrive at commercially viable solutions to achieve net zero is arguably the industry’s biggest challenge.”
The International Air Transport Association (IATA) said last month that because the volume of production of SAF remains low globally, “huge opportunities” are being missed to advance aviation’s decarbonisation. Last year, 600 million litres of SAF was produced, with the figure expected to hit 1.87bn litres this year. But that accounts for just 0.53pc of the aviation sector’s fuel requirements, and only 6pc of renewable fuel capacity.
Dick Forsberg, senior aviation finance consultant at PwC Ireland and author of the report published today, noted that global air travel has boomed since the Covid pandemic ended.
Global passenger levels are now within 5pc of the 2019 figure, at 4.3 billion. Airline profitability has also surged, spurred by a 20pc decline in the average price of jet fuel last year.
“Key issues for aviation will be to do with production quality and supply chain as well as turning the dial on the journey towards decarbonising the industry,” said Mr Forsberg. “Key opportunities include technology and particularly GenAI to achieve cost savings, efficiencies and customer loyalty.”