Air NZ Sets New Emissions Pathway After Dropping 2030 Target

Aviation contributes significantly to greenhouse gas emissions and climate change, accounting for about 2-3.5% of global CO₂ emissions. 

While CO₂ is the primary greenhouse gas emitted, aviation also releases other substances like nitrogen oxides and soot, which contribute to climate change.

Air New Zealand (Air NZ) has updated its emissions pathway amid its dropping of the 2030 SBTi target of 29%.

Air NZ’s new emissions pathway

Air NZ has unveiled its new 2030 Emissions Guidance framework that is aimed at increasing transparency and realism in its path to net zero carbon emissions by 2050. 

The move follows the company’s decision to withdraw from the SBTi and drop its original 2030 carbon intensity reduction target last year.

The change reflects the airline’s reassessment of the feasibility of its climate ambitions in the face of evolving operational, supply chain and policy-related challenges. 

Though it marks a shift away from a fixed goal, Air NZ remains committed to its long-term decarbonisation journey and to playing its part in addressing aviation’s environmental impact.

A difficult but necessary decision?

In 2024, Air NZ announced the withdrawal of its 28.9% reduction in emissions intensity compared to 2019 levels. 

"We are acutely aware of aviation’s impact on the climate and our natural environment, so developing a replacement has been a priority for the airline," the company stated.

“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,” comments Greg Foran, Chief Executive Officer at Air NZ.

“It is possible the airline may need to retain its existing fleet for longer than planned due to global manufacturing and supply chain issues.

“Given so many levers needed to meet the target are outside our control, the decision has been made to retract the 2030 target and withdraw from the SBTi network immediately.”

The 2030 emissions guidance

Replacing the abandoned target is the newly launched 2030 Emissions Guidance, a dynamic tool that will be updated annually as part of the airline’s Climate Statement.

Rather than setting a static target, the guidance reflects an evolving, data-driven outlook of emissions through to 2030, shaped by real-time progress, market conditions, policy shifts and technological developments.

This year’s emissions forecast projects a 20% to 25% reduction in net "well-to-wake" GHG emissions from jet fuel, benchmarked against 2019 levels.

This metric includes the full lifecycle of emissions, from fuel production and distribution to combustion during flight.

“We want to be very honest about what we think is possible given the challenges involved in decarbonising the aviation sector,” the airline stated. 

“Setting something we can’t reach wouldn’t be tika (truth). This will still be a stretch for us.”

Steps towards 2050: from SAF to efficiency

Air NZ’s decarbonisation strategy relies on a combination of sustainable aviation fuel (SAF), new aircraft technology, operational efficiency and high-integrity carbon removals.

In 2023, the airline sourced just 0.4% of its jet fuel from SAF. 

This is projected to rise to 1.6% in 2024, with a goal of reaching 10% by the end of the decade.

“While the volumes of SAF we are buying are very small compared to the amount of fossil jet fuel we use, they give an important signal to alternative fuel producers that we are open for business,” explains Kiri Hannifin, Chief Sustainability and Corporate Affairs Officer.

The airline is also advancing fleet renewal where possible, optimising its network and routes, and investing in carbon credits to meet international regulatory obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). 

Where appropriate, it will also employ verified carbon removal methods to offset remaining emissions.

Annual climate statement

The 2030 Emissions Guidance will form part of Air NZ’s annual Climate Statement, published each August in line with Aotearoa New Zealand Climate Standards (NZCS). 

These standards adopt the framework developed by the Task Force on Climate-related Financial Disclosures (TCFD), which the airline has voluntarily reported against since 2020.

The Climate Statement covers four mandatory reporting sections and is intended to ensure long-term accountability and transparency as the airline navigates its low-carbon transition.

While the removal of the previous SBTi target may appear as a step back, Air NZ is adamant that its net zero goal remains firmly in place. 

“Air NZ remains committed to reaching its 2050 net zero carbon emissions target,” comments Dame Therese Walsh, Air NZ Chair.

“Our work to transition away from fossil fuels continues, as does our advocacy for the global and domestic regulatory and policy settings that will help facilitate Air NZ, and the wider aviation system in New Zealand, to do its part to mitigate climate change risks.”

Internally, the airline has acknowledged the extensive efforts made by its team to bring this new guidance to life. 

By setting realistic expectations while maintaining an ambitious trajectory, Air NZ is aiming to lead by example in a sector that remains one of the hardest to decarbonise. 

The annual emissions guidance provides a transparent, flexible and pragmatic approach to managing climate-related risks—while keeping the 2050 net zero vision firmly on the horizon.

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