Five noteworthy aviation sustainability developments in the past seven days curated by the Ishka SAVi team.

Here are the new developments to keep in mind:

1. ICCT sees 'action' but no 'breakthroughs' in aviation Net Zero 2050 progress - The International Council on Clean Transportation (ICCT) published a blog post on 15^th April summarising progress by aviation towards decarbonisation nearly two years on from ICAO's long-term aspirational goal (LTAG) to achieve Net Zero emissions by 2050. The ICCT's senior director of research, Dan Rutherford, notes that based on the ICCT's modelled scenarios, the transportation research non-profit is starting to see "some Action, especially in the European Union (EU), but there is no in sight Breakthrough yet". The remarks correspond to two of ICCT’s four modelled scenarios: Action, the second least ambitious scenario where coordinated efforts by governments and industry cap aviation CO2 below 2019 levels by 2050, and Breakthrough – the most ambitious scenario of the four – where early, aggressive, sustained government intervention triggers widespread investments in zero-carbon aircraft and fuels, leading to peak fossil fuel use in 2025 and zeroing it out by 2050. Rutherford noted that legally binding SAF requirements in Europe, Indonesia, and Brazil, along with mandates under development in the UK and Japan, are consistent with 2% global SAF uptake by 2030. Non-binding goals (including ICAO’s aspirational goal of 6% SAF in 2030, select carrier commitments, and the Inflation Reduction Act tax incentives in the United States) "could potentially" bring 2030 volumes up to the assumed Action level of 3% SAF by 2030, he added. Other developments around clean propulsion development, fleet renewal trends, and carbon pricing also broadly align with the 'Action' scenario. In Ishka's view, Rutherford’s blog post, although short, is one of the best-informed stocktakes so far on the current state of worldwide efforts to decarbonise aviation. 
2. Insurers urged to develop meaningful transition plans in new report- Influential European non-profit Finance Watch this month published a new report titled Transition Planning for Insurers – A supervisory tool to improve climate resilience risk. Much like the reasoning behind the Net Zero Banking Alliance (NZBA), the report takes the view that although insurers are “not big emitters of GHGs through their own operations […] they are in a unique position to direct the real economy towards an orderly transition.” It urges insurers to develop a plan to align their practices with climate objectives. Rather than abrupt divestment from polluting sectors (including potentially aviation), the report advises insurers to “engage with counterparties to aid and promote a shift to net-zero business practices, both through investing as well as underwriting”.
3. UK’s Transition Plan Taskforce (TPT) releases April 2024 Sector Summary Guidance – The UK-driven Transition Plan Taskforce (TPT) – an international group fostering transition finance policy created during COP26 in 2022 – has unveiled a detailed document listing decarbonisation levers, metrics, and targets per sector. A breakdown of these categories for aviation can be found on pages 99 and 100, while page 101 provides a list of resources for further information. The document aims to complement the TPT Framework, which presents a set of five elements to help companies create credible climate transition roadmaps and disclosures. The framework is consistent with, and builds on, the final climate-related disclosure standard (IFRS S2) issued by the ISSB. The TPT is supported by the UK Centre for Greening Finance & Investment as well as climate change think tank 3EG.
4. MONTE to provide leasing and financing options for clean OEM Natilus’ cargo aircraft – Moving from fixed-wing to blended-wing products, clean propulsion lessor MONTE announced this week a partnership to support Natilus’ Kona, a remotely piloted cargo aircraft designed for regional use with a 3.8 metric tonne payload. The Kona is ideally suited for ZeroAvia’s ZA600 hydrogen-electric propulsion system, according to the press release. The aircraft’s commercial advantage lies in its blended-wing-body design, which allows for double the cargo volume compared to traditional aircraft of the same size. MONTE has positioned itself as the market leader in financing the conversion of small, regional turboprop aircraft to new, clean propulsion technologies and has partnerships with clean OEMs ZeroAvia, Eviation, Dovetail Electric Aviation, and Cranfield Aerospace Solutions (CAes), making this the lessor’s fifth partnership in the space.
5. New aircraft recycling association launches – The Aviation Circularity Consortium (ACC) launched on 16^th April comprising six global aviation stakeholder groups committed to supply chain decarbonisation. Founding organisations include Nandina REM, Jamco America, Qantas, Sumitomo Corporation Asia & Oceania, Titan Leasing, and Vaupell. The consortium aims to pioneer a circular economy model by repurposing materials from the approximately 8,000 retired aircraft stored in boneyards worldwide. The ACC is collaborating with OEMs and regulators to develop a roadmap for certifying these reclaimed materials for aviation products and other green transition industries, which it expects to publish later in the year. These efforts will add to those of the Aircraft Fleet Recycling Association (AFRA), established in 2006, which has focused on creating structured guidance on managing the parting out process of aircraft. Additionally, the ACC will be “working closely with supply chain partners to address cost barriers that come with the green transition, such as creating access to new blended financing”. Nandina REM will lead engagement with financial institutions to create sustainability-linked financial products, supporting supply chain adoption of the roadmap.

Ishka is proud to be a Knowledge Partner of Aviation Carbon 2024. Registrations for Aviation Carbon 2024 will open in May.

Tags: Aircraft, Insurance, MONTE, New Energies and Propulsion, UK