Air New Zealand becomes first major airline to scrap its 2030 climate goal

Air New Zealand on Tuesday dropped its 2030 climate goal, citing delivery delays of fuel-efficient aircraft and the affordability of alternative jet fuels.

The announcement means that New Zealand's national flag carrier has become the first major airline to water down its near-term climate aspirations, a move that reflects the scale of the industry's challenge to meet its decarbonization goals.

Air New Zealand CEO Greg Foran said in a statement that it has become apparent in recent weeks "that potential delays to our fleet renewal plan pose an additional risk to the target's achievability."

"It is possible the airline may need to retain its existing fleet for longer than planned due to global manufacturing and supply chain issues that could potentially slow the introduction of newer, more fuel-efficient aircraft into the fleet," Foran said.

"As such and given so many levers needed to meet the target are outside our control, the decision has been made to retract the 2030 target."

Air New Zealand had previously said its 2030 target was to reduce carbon intensity by 28.9%, compared with 2019 levels. The airline said Tuesday that work has begun on a new near-term target.

Aviation is a significant contributor to climate change and widely regarded as one of the most challenging sectors to decarbonize.

In 2022, aviation was estimated to account for 2% of global energy-related carbon emissions, having grown faster in recent decades than other modes of transport, such as rail, road and shipping.

The International Energy Agency said that for aviation to get on track with its 2050 net-zero emissions scenario, technical measures related to low-emission fuels, improvements in engines and airframes, and demand-restraint solutions would all be needed to curb growth in emissions.

Air New Zealand also confirmed its intention to immediately withdraw from the Science Based Targets Initiative. The SBTi network is a United Nations-backed climate action group that seeks to help companies reduce their emissions in line with the 2015 Paris Agreement.

Air New Zealand Chair Therese Walsh said the carrier remains committed to reaching its 2050 net-zero carbon emissions target.

"Our work to transition away from fossil fuels continues, as does our advocacy for the global and domestic regulatory and policy settings that will help facilitate Air New Zealand, and the wider aviation system in New Zealand, to do its part to mitigate climate change risks," Walsh said.