Cathay Pacific & HSBC: Making Hong Kong Aviation Sustainable

Cathay Pacific, HSBC Hong Kong and EcoCeres are launching an initiative to support the use of sustainable aviation fuel (SAF) in Hong Kong.

By bringing together Hong Kong’s largest bank, its home airline and a leading Hong Kong-based SAF producer, the collaboration aims to drive the long-term decarbonisation of air travel and foster a local SAF ecosystem.

HSBC Hong Kong is entering into a one-time purchase agreement for 3,400 metric tonnes of SAF produced by EcoCeres, to be used in Cathay Pacific flights departing from the Hong Kong International Airport.

EcoCeres’ SAF

EcoCeres’ SAF is derived from 100% waste-based biomass feedstock, which can deliver an estimated reduction of up to 90% in greenhouse gas emissions compared to conventional jet fuel.

In order to meet the EU’s climate objectives, it is expected that by 2050 at least 70% of all aviation fuel used for flights departing from EU airports will be SAF.

SAF can be produced by processing and upgrading hydrotreated vegetable oils (HVO) through isomerisation.

The reduction in carbon emissions from the use of SAF is estimated to be 11,800 metric tonnes, compared with use of the same volume of conventional jet fuel – equivalent to the carbon emissions arising from around 10,000 roundtrip economy class seats from Hong Kong to London on Cathay Pacific flights.

Matti Lievonen, Executive Chairman of EcoCeres, said: “We are thrilled to contribute to the ground breaking collaboration with HSBC and Cathay Pacific in piloting Hong Kong's first SAF ecosystem. This initiative will support HSBC in improving the traceability of its travel supply chain and also exemplifies an initiative to support progress towards a greener future. 

“We are confident that this tri-party partnership will serve as a successful model, inspiring global efforts towards decarbonisation in the aviation sector and promoting the shift to renewable energy solutions.”

The Partnership

In October 2020, HSBC set an ambition to become a net zero bank by 2050. The bank released its first Net Zero Transition Plan in January 2024, outlining its approach and the actions underway to help meet that ambition.

Luanne Lim, CEO Hong Kong at HSBC, says: “This is the largest SAF purchase that HSBC has undertaken to date. The Hong Kong initiative will serve as a pilot programme, which could help pave the way for broader implementation. 

“It reflects our support for new economic solutions and demonstrates how businesses can collaborate to support innovative decarbonisation technologies.”

Cathay aims to achieve net-zero carbon emissions by 2050 and to use SAF for 10% of its total fuel consumption by 2030.

To accelerate the SAF transition, Cathay launched its Corporate SAF Programme in 2022, enabling members to reduce their indirect emissions associated with air transportation. HSBC Hong Kong was a launch member with a committed use of over 6,050 metric tonnes of SAF in 2024.

Ronald Lam, CEO of Cathay Group, says: “We are grateful to HSBC for this landmark partnership, showcasing shared sustainability leadership, and to EcoCeres for their market leading SAF production. We are very encouraged by the participation by more and more corporates in SAF related initiatives. 

“At the same time, we look forward to the development of a comprehensive SAF policy in Hong Kong as soon as possible, which is essential to raise and future-proof our home city’s competitiveness as an international aviation hub and foster its transition to low-carbon energy.”

Healing Hong Kong

EcoCeres is one of the few companies in the world that can convert waste into various types of sustainable transportation fuels, accounting for around 20% of SAF market share globally in 2022 and 2023.

The recent Hong Kong SAR Government’s Policy Address reaffirmed the city’s commitment to SAF development. 

Clara Chan, CEO of the Hong Kong Investment Corporation, says: “EcoCeres is a classic example of a home-grown company, which has developed into a well-recognised unicorn on the global stage. We are pleased to see its commitment and concrete actions to support Hong Kong, as well as its continued development as a global trailblazer in SAF development and usage.

“Today’s partnership demonstrates the curation of Tri-Synergy – synergy between Hong Kong’s roles as international green technology and finance centre, as well as international aviation centre, synergy among stakeholders from different industries comprising HSBC, Cathay Pacific and EcoCeres, and synergy among Hong Kong and rest of the world.

"We look forward to the continued growth of this partnership and SAF’s development in Hong Kong.”

The collaboration between HSBC, EcoCeres and Cathay signposts meaningful progress in the right direction and encourages the public and private sectors to pursue further SAF initiatives."

Lam Sai-hung, Secretary for Transport and Logistics of the Hong Kong SAR Government, says: “The announcement of this tripartite partnership arrives at a crucial time. The collaborative efforts of Cathay Pacific, HSBC and EcoCeres in advancing sustainability resonates with the Government’s initiatives and vision.

“As mentioned in the Chief Executive’s policy address last month, our goal is to establish a usage target for SAF within next year, aiming to significantly reduce carbon emissions in the aviation sector.”

For Hong Kong to cultivate the growth and application of SAF, as well as maintain its status as a leading international aviation hub, collaboration between government and business stakeholders is essential. 

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