financetom
Business
financetom
/
Business
/
Airlines and energy firms clash over green fuel supplies
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Airlines and energy firms clash over green fuel supplies
Jun 4, 2024 9:00 AM

DUBAI (Reuters) - Airlines and energy firms clashed over scarce availability of alternative fuels on Tuesday as carriers ended a three-day summit struggling to square near-record demand with supply chain problems and pressure to meet environmental goals.

The aviation industry has committed to reducing net emissions to zero by 2050 largely through plant-based Sustainable Aviation Fuels (SAF).

But with current supplies of SAF covering just 0.5% of the airlines' fuel needs, disagreements surfaced during an annual meeting of the International Air Transport Association, attended by energy companies including France's TotalEnergies.

"Total's net earnings last year were $23.2 billion. The whole airline industry's net earnings in 2023 were $27 billion,"

IATA Director General Willie Walsh said during a closing debate.

"The fuel companies who produce the problem ... we need to see those companies like Total investing significant sums of money in the development of Sustainable Aviation Fuel. That's the reality of where we are."

The head of the French energy giant's aviation and marine business defended its commitment to helping industries like aviation, which has few immediate alternatives, meet its goals.

"Thank you for raising our excellent results," senior vice-president Louise Tricoire, responded during lively exchanges on stage in Dubai, adding that TotalEnergies already re-invests the bulk of its profit in renewable energy research.

"So I don't agree that we don't do our part with SAF; we are doing our part".

SAF production doubled in 2023 and is expected to triple in 2024. But it costs three times more than kerosene and airlines reiterated this would have to be passed to consumers.

They also complain they are competing with other industries for access to limited renewable fuel capacity and need more support from governments to complete the ambitious switch-over.

Governments last year set an interim target of 5% lower emissions through the use of low-carbon fuels by 2030.

IATA stopped short of setting its own interim target, with members unwilling to be boxed in without widespread government policies to support the politically agreed goal, delegates said.

But Walsh said the trickle of available SAF made the interim goal look ambitious, while reaffirming the 2050 net zero target.

On the sidelines, some senior delegates privately questioned whether aviation could meet the 2050 target, adopted in 2021 to tie the sector's climate action to the 2015 Paris accord.

The industry is trying to carry out the transition at the same time as meeting post-COVID demand - an effort Qantas Chief Sustainability Officer Andrew Parker likened to "heart surgery while running a marathon".

In Europe, environmental groups say the challenge of meeting the targets is only made worse by the scale of the industry's own growth, highlighted by figures released this week showing that IATA predicts almost $1 trillion of revenue in 2024.

"I don't get that debate or argument being made when I go to India, China, Latin American or Africa, where it's quite the opposite, where there is a genuine desire to see greater connectivity" Walsh told Reuters

Attended by a record 1,700 delegates, the June 2-4 summit was held in Dubai, the world's largest international hub.

IATA's next annual meeting will be in Delhi, capital to the world's most populous nation and another aviation powerhouse.

(Additional reporting by Alexander Cornwell; editing by David Evans)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Quantum Stocks Tumble: Why Rigetti, IonQ and D-Wave Are Falling
Quantum Stocks Tumble: Why Rigetti, IonQ and D-Wave Are Falling
Jan 8, 2025
Rigetti Computing Inc. ( RGTI ) , IonQ, Inc. ( IONQ ) and D-Wave Quantum Inc. ( QBTS ) shares are moving lower on Wednesday. The weakness in quantum-related stocks comes after Nvidia Corporation ( NVDA ) CEO Jensen Huang expressed skepticism about the timeline and near-term usefulness of quantum computers. During Nvidia’s analyst day, Huang commented, If you said...
uniQure Prices $75 Million Public Offering; Shares Fall
uniQure Prices $75 Million Public Offering; Shares Fall
Jan 8, 2025
10:35 AM EST, 01/08/2025 (MT Newswires) -- uniQure (QURE) said Wednesday it priced an underwritten public offering of about 4.4 million shares at $17 per share, for expected gross proceeds of about $75 million. Underwriters were given a 30-day option to buy up to 661,764 additional shares, the company said. The offering is expected to close on or about Friday,...
Exxon slips after flagging weak fourth-quarter earnings on refining squeeze
Exxon slips after flagging weak fourth-quarter earnings on refining squeeze
Jan 8, 2025
(Reuters) - Exxon Mobil ( XOM ) shares fell nearly 2% in early trading on Wednesday after the top U.S. oil producer warned of a decline in refining profits in the fourth quarter and weak returns across its operations. The earnings snapshot from the industry bellwether signaled a challenging environment as companies grapple with pricing pressure amid demand volatility. Exxon...
US transfers $50 million in forfeited assets to Estonia for help in Danske Bank prosecution
US transfers $50 million in forfeited assets to Estonia for help in Danske Bank prosecution
Jan 8, 2025
WASHINGTON (Reuters) -The U.S. Justice Department said on Tuesday it will share $50 million in forfeited assets with Estonia in recognition of Estonia's assistance in the successful prosecution of Danske Bank and related forfeiture. The bank became the subject of several investigations after an internal probe in September 2018 uncovered about 200 billion euros ($207 billion) of payments made through...
Copyright 2023-2026 - www.financetom.com All Rights Reserved