Are the sustainable investors ready for take off?

June 22, 2019By adminUncategorized

Having been working on gaining investment for Jet Fuel from Waste we have come to realise that not all investors, even those working within sustainability investing have sustainable aviation fuel on their agendas. We have spoken to many large institutions and grant programmes and the usual answers is that is not in scope right now or not part of the portfolio for this period. 

With emissions reduction targets that are currently not on track, this being mentioned at the ‘The role of low carbon fuels in achieving the Paris agreement‘ at Sustainability Week, at the European Commission: 18th June, how do we expect to fulfil these when the finance is not necessarily there to scale up technology that is ready and available? As well as supporting new tech to continue to evolve.

We attend ‘All about Impactful Investing’ at King’s College, London, in January. The programme discussed fund management, wealth investors, impact reporting, aligning investments with SDGs and more. It was evident at this event that there is a turn around in thinking. As consumer behaviour changes businesses realise that they won’t cut it in the future if they don’t have sustainability through and through and not just a nod to it. It needs to be a pillar of the business strategy and no longer CSR.

In literal terms the capital needs to move, confidence needs to increase and more risk taking in this area needs to happen. Marko Janhunen of UPM mentioned policy uncertainly was a major factor in the fact that of funding wasn’t moving quick enough.

Clariant, a world leader in chemicals, mentioned at the same meeting that they had just invested €100 million in a bio based plant in Romania which shows leadership in decarbonising the future of the industry. Another company is GF Biochemicals who have been operating in the biochemical industry since 2008 and are pioneers in the shift to bio. Will we see others follow soon?

There was talk that €20 billion per year up to 2050 was needed in investment to reach the EU targets which is not on track.

It was noted this week that, Robeco, Dutch sustainable investment group, currently has a job opening for a biofuel analyst which is encouraging and does demonstrate understanding that the market needs to be assessed and monitored so reports can be presented to investors looking to the future of the bio based industry.

Bodies such as and presented at the meeting at the Commission and explained about working towards scaling up the industry and the energy transition but again the International Energy Agency figures showed transport and some other sectors are lagging behind which was discussed by Paolo Franki in Brusssel’s this week, so still a way to go.  Pharoah Le Feuvre of IEA recently sumed up the state of play in the sustainable jet fuel world and explains some of the drivers needed in the article he wrote in March this year.

The meeting was well attended and created an important discussion that needs to be had many more times until we see further policy change to support the production and emission reduction targets.

Presenting: Cesar Velarde of ICAO

Fuelling the Future of Flight – Boeing

June 20, 2019By adminUncategorized

Boeing hosted an event, 6th June 2019, at their Brussels office. Guests included the European Commission, Politico, KLM, IATA, Aviation Weekly, airline associations and public affair consultancies.

There was much discussion from industry specialists who gave their informed thinking on ‘Fuelling the future of Flight’ through sustainable aviation fuel (SAF).

Sean Newsum of Boeing mentioning he thinks any move towards more sustainable flying will be caused by technology over lifestyle changes.

Faustine Delasalle mentioning that macro economic will come in to play in time and that purchasing of SAF fuelled flights should be led by B2B customers who can financially take some increases in tickets prices in the interim, while SAF is 2-3 times more expensive than fossil.

Robert Boyd let us know there have been SAF 183,000 to date and discussed that is took 15 years to create the CORSIA agreement, a global commitment by airlines to decarbonise by 50% on 2005 levels by 2050.

It was discussed that punitive (green) taxes were not favourable, Cesar Velarde of ICAO also previously mentioning this at the Sustainable Energy Week in Brussels, 18th June.

Circular Economy Consulting brought up the fact that when speaking to investors, even to those investing in impactful investments, there was little knowledge of sustainable aviation fuel as a future investment opportunity, so perhaps more awareness raising events could be created to encourage knowledge sharing and market steer.

It was discussed that forward purchasing of biofuel by airlines, which is being done by Cathay Pacific and others, will secure funding for the building of plants in the future and demonstrate demand.

Questions raised: can we create the market for SAF? Which airlines will be the first to make the move to green flights? Pete Harrison of the European Climate Foundation mentioned flying on SAF would add €20/30 per person to European flights and €50 to transatlantic flights. Maybe this is one commitment as individuals we need to make? This is a hard sell to customers, but do we need to face up to this fact?

Emissions have reduced by 2% annually, through fleet renewal and air traffic management efficiencies, but if we want to protect travel for the future then we need a collaborative approach, policy support and incentives to get the sector moving and get to a the tipping point on this, wanted and needed innovation in air travel.

An excellent event which stimulated conversation and brought together experts to exchange ideas on how to solve this global challenge.