There is no simple, single solution to decarbonise the aviation industry over a relatively short time horizon.
Decarbonising the aviation industry is highly complex from the perspectives of engineering innovation, airline safety regulations in testing the efficacy and safety of new technologies, and, because no single country can decarbonise the aviation industry, global political cooperation is required.
In a newly published paper delivered to the Society of Actuaries in Ireland entitled, “Drivers of Change in the Environmental Impact of the Aviation Industry,” Ana Magdalina, VP of Research and Analysis at aircraft lessor FPG Amentum, and John Caslin, chair of the Society’s Banking and Aviation Finance Committee, discuss an eclectic range of factors driving the decarbonisation of the aviation industry including technical challenges, and consumer, legal, regulatory, and financing pressures.
There’s a nuanced analysis of the complex issues surrounding proposals to replace short-haul flights with high-speed rail in this paper. Several important considerations that are often overlooked in this debate are picked up by the paper.
SAF, e-fuel, the Carbon Offsetting and Reduction Scheme for International Aviation, ReFuelEU, the emissions trading schemes of the EU and the UK, carbon offset markets, and EU sustainability disclosure regulations are all well covered by the paper.
The paper also has some interesting observations on the possible implications for the level of competition in the European airline industry arising from the factors identified.
Readers can view it by clicking here.
