Private Investments in Emission Reduction Measures and Technologies Driving Competitive Intensity
The climate crisis and growing carbon emission projections present significant challenges for the aviation sector. Aviation’s contribution to global CO2 emissions has been more than 2.5% for the last few years, but the industry emits other pollutants, such as soot and methane. Considering the impact of these pollutants, aviation contributes to more than 3.5% of the total global emissions that cause global warming.
There is a positive correlation between growth in passenger traffic and total emissions. The decline in passenger traffic due to the COVID-19 pandemic led to a corresponding decline in aviation emissions. As of 2021, no “magic bullet” can eliminate or drastically reduce harmful emissions in commercial aviation. The development of alternative energy sources for the commercial aviation value chain is in the nascent stages of research. This report examines the potential action items and technologies the aviation industry invests in to reduce its environmental impact. Creating highly efficient processes, optimizing resource utilization, and streamlining operations will be key to limiting emissions.
The study also discusses initiatives around digitalization, carbon offsetting, and partial blends of sustainable aviation fuels (SAF), which will enable the aviation sector to optimize existing resources and contain the overall environmental impact to a certain level. These efforts will be the main focus areas toward sustainability in commercial aviation in the short and medium terms. However, these efforts alone will not halt industry emissions. The major emission area is fossil fuel-dependent engines, a primary target for emission-conscious stakeholders. The journey toward net-zero emission will likely face challenges as the overall industry and surrounding macro parameters evolve. However, the aviation sector and other industries must stick to this path to ensure a greener future.
