ICAO highlights critical role of financiers in scaling sustainability efforts
November 26, 2024
Closing this year’s Aviation Carbon event held at London Heathrow on Monday and Tuesday, ICAO secretary general Juan Carlos Salazar highlighted financing as a key building block to address the challenges and opportunities facing the industry as it strives towards a net-zero future.
Salazar congratulated delegates and stakeholders, reflecting on the diverse range of topics covered during the two-day event, including sustainable aviation fuel (SAF) policies, innovative technologies, regulatory frameworks, carbon markets and financial solutions.
Referencing the landmark adoption of a long-term global goal of net-zero carbon emissions by 2050 during the 41st Session of the ICAO Assembly in 2022, Salazar reinforced to delegates that, “this goal recognises the urgent need to address climate change while acknowledging the vital role of aviation in global development.”
He added that achieving the interim target – a 5% reduction in CO2 emissions by 2030 through the use of SAF, lower carbon aviation fuel (LCAF) and cleaner energy soures – is “ambitious but achievable.” However, he underscored that success hinges on the effective “allocation of financial and human resources,”
Financing: The cornerstone of the net-zero vision
“Financing will be paramount for achieving [the industry’s] goals for a net-zero future,” Salazar stressed. He highlighted the critical need for substantial investments to support the clean energy transition. A key component of ICAO’s strategy is the development of the ICAO Finvest Hub, a platform designed to foster investment partnerships, particularly in those countries and regions without SAF production capabilities.
The Finvest Hub aims to connect aviation decarbonisation projects with financial institutions, facilitating collaboration to fund initiatives. It also plays a vital role in ICAO’s capacity-building and implementation support efforts, with more than 200 states and organisation participating in its Assistance, Capacity Building and Training programme for SAF (ACT-SAF).
With more than 20 SAF feasibility studies and business implementation reports under development, ACT-SAF provides crucial support for the development and deployment of SAF.
Salazar also highlighted ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which now recognises 48 feedstocks and currently has 129 member states voluntarily participating in the scheme subject to offsetting requirements in 2025. He also praised the recent adoption of Article 6 of the Paris Agreement at COP29, noting its role in clarifying the authorisation and cancellation of CORSIA-eligible units. This step, he said, ensures stability in voluntary carbon markets and prevents double counting.
Call for action
In closing, Salazar urged attendees of this year’s Aviation Carbon to take the insights and momentum gained from the event back to their respective roles. “Aviation is not only rising to meet its climate responsibilities, but is poised to lead the way with concrete action and global collaboration,” he concluded.
