State-controlled carrier Air New Zealand has announced its withdrawal from the Science Based Targets initiative, saying its 2030 emissions reduction goal is unachievable because of issues outside the airline's control.
It cited factors including affordability and availability of alternative jet fuels, as well as a lack of global and domestic regulatory and policy support.
"In recent months, and more so in the last few weeks, it has also become apparent that potential delays to our fleet renewal plan pose an additional risk to the target's achievability," chief executive Greg Foran said on 30 July.
Air New Zealand said it will develop a new short-term carbon emissions reduction target while working to transition away from fossil fuels and reach net zero emissions by 2050.
The company was aiming to cut its carbon intensity by 28.9pc before 2030 from a 2019 baseline, or an absolute reduction in emissions by 16.3pc over the same period, pledging to consider electric, hybrid and green hydrogen aircraft as part of its decarbonisation strategy.
It expected sustainable aviation fuel (SAF) would comprise 10pc of jet fuel use in the 2029-30 fiscal year as part of the target. But New Zealand's previous Labour party government cancelled a planned biofuels mandate early last year in a blow to the sector's domestic manufacturing hopes.
Air New Zealand took delivery of a 500,000 litre SAF shipment last month and has a deal with Finnish producer Neste for 7,200t for use at Los Angeles airport, as no SAF is currently produced in New Zealand.
But Air New Zealand said it was paying a fourfold premium on the price of jet fuel for the imports, advocating for a SAF-specific mandate to spur domestic production in its 2023 sustainability report.
