Cathay Pacific Drives Green Transformation with SAF Application
Under the "dual-carbon" goals, the aviation sector has long been considered a hard-to-abate industry within China's transportation sector. However, according to the International Air Transport Association (IATA), sustainable aviation fuel (SAF) is expected to account for 65% of aviation's carbon reduction by 2050. SAF, produced from renewable materials and waste, can reduce lifecycle carbon emissions by over 80% compared to conventional jet fuel, offering significant advantages. Nevertheless, China's SAF market is still in its early stages and faces multiple challenges. In terms of production capacity, it struggles to meet rapidly growing market demand. Technologically, R&D bottlenecks persist without major breakthroughs. Unstable raw material supply further disrupts production continuity. Moreover, production costs remain substantially higher than those of traditional jet fuel, creating significant economic barriers to widespread adoption. These factors contribute to an underdeveloped SAF industry on both supply and demand sides, severely hindering the decarbonization progress of China's aviation sector.
As a pioneer in global aviation sustainability, Cathay Pacific recognizes the critical importance of scaling SAF application. In response to industry calls, the airline launched its Corporate SAF Program in 2022-the first of its kind in China at the time. This initiative is not only a key pathway toward achieving carbon neutrality in aviation but also an essential driver for the industry's sustainable transition.
(1) Innovative Practices: Pioneering SAF Application
Under the Corporate Sustainable Aviation Fuel Program launched in 2022, Cathay Pacific took the lead in adopting SAF at Hong Kong International Airport and actively invited corporations to participate, helping them reduce the carbon footprint of business travel and air freight. The airline also issued verified carbon reduction certificates and sustainability certifications to participating companies, assisting them in lowering Scope 3 emissions generated from business activities. Meanwhile, Cathay Pacific has been increasing the proportion of SAF usage and improving overall fuel efficiency. The carbon intensity trend is optimistic, with total greenhouse gas emissions falling below pre-pandemic 2019 levels. The program utilized 1,048 tonnes of pure SAF, reducing carbon dioxide emissions by over 2,480 tonnes-demonstrating significant environmental benefits and validating the effectiveness of Cathay Pacific's SAF initiatives.
(2) Industry Collaboration: Boosting SAF Development Momentum
In the same year, Cathay Pacific purchased 38 million US gallons of SAF from sustainable fuel suppliers, a quantity sufficient to reduce over 80,000 tonnes of lifecycle carbon emissions-equivalent to the carbon absorption of more than 1.3 million saplings over 10 years. This move provided stable market demand for SAF suppliers and injected strong momentum into industry development. Cathay Pacific also signed a memorandum of cooperation with the State Power Investment Corporation to support SAF certification processes, value chain development, and overall market expertise, assisting in the construction of four SAF production facilities in mainland China. Each facility is expected to produce 50,000 to 100,000 tonnes of SAF annually. Through collaboration with upstream and downstream partners, Cathay Pacific has fostered synergistic innovation across the industrial chain, enhancing SAF production capacity and quality, reducing costs, and vigorously promoting the overall development of China's SAF industry.
(3) Breaking New Ground: Establishing SAF Promotion Channels
Additionally, Cathay Pacific co-founded the "Hong Kong Sustainable Aviation Fuel Coalition," which conducts research on SAF development white papers and actively engages with various stakeholders and governments. The coalition aims to streamline channels for corporate clients to fund, purchase, and use SAF. The Scope 3 emission reductions achieved through SAF usage undergo third-party verification, enabling corporate clients to publicly claim reduced aviation-related carbon emissions (business travel or air freight) under Scope 3 and report them to the Science Based Targets initiative (SBTi). This innovation enhances the credibility of carbon reduction data and provides authoritative emission reduction certification, encouraging corporate participation in SAF adoption. By sharing the SAF cost premium between airlines and end-users, Cathay Pacific has gradually scaled SAF usage during this high-cost phase, exploring a business model for large-scale SAF application and effectively addressing the cost challenges in promotion. The introduction of SAF at Hong Kong International Airport-using existing refueling infrastructure-sets a precedent for regular SAF supply at the airport in the future, advancing the sustainable development of the aviation industry and the green transformation of its supply chain.