SAS to speed climate plan as part of recapitalisation

Scandinavian airlines SAS will accelerate an emissions-reduction plan as part of a recapitalisation.

The government imposed climate requirements on SAS in connection with the bail-out, which will see it invest up to 5bn Swedish kronor ($535mn) to help the airline mitigate the effects of the Covid-19 pandemic.

SAS' target of a 25pc reduction of its net CO2 emissions — compared with 2005 level — by 2030 has been accelerated to 2025 in the revised plan, and its emissions could be cut by up to 50pc by 2030.

The firm intends to achieve its goal by continuing the introduction of new fuel-efficient aircraft and by minimising fuel consumption during flights. The achievement of the 25pc reduction of emissions target by 2025 is also contingent to the use of up to 10pc of sustainable aviation fuels in SAS' flights. SAS said it will use existing production capacity and sign offtake agreements to secure sufficient amounts of sustainable fuels, and will explore partnerships with providers of carbon capture and storage (CCS).

The recapitalisation plan includes around SKr4bn in efficiency improvements in all parts of the company by 2022.

The Swedish government is evaluating the introduction of a greenhouse gas (GHG) emissions quota from 2021. The proposal calls for an emissions reduction of 0.8pc from jet fuel used in Sweden in 2021, gradually increasing to 27pc by 2030.

By Giulia Squadrin