Qantas, one of the world’s leading airlines, has unveiled its groundbreaking initiative to establish an AUD$400 million climate fund, solidifying its commitment to sustainability and propelling the aviation industry toward a net-zero future. This move positions Qantas as a frontrunner in the global fight against climate change and sets a new standard for the airline industry.

Announced during the highly anticipated Qantas Group’s Investor Strategy Day, the Qantas Climate Fund represents the largest aviation fund of its kind worldwide. With an investment of approximately AUD$290 million already secured through its partnership with Airbus, aimed at advancing a sustainable aviation fuel (SAF) industry in Australia, and an additional AUD$110 million allocated by Qantas for various environmental projects, the fund will drive direct investments in sustainability projects and technologies.

The primary focus of the Qantas Climate Fund will be to support and invest in innovative technologies and projects that align closely with the airline’s ambitious emissions reduction targets. Qantas aims to reduce its carbon emissions by 25 per cent by 2030, based on 2019 levels, and to incorporate 10 per cent SAF into its overall fuel mix by the same year. Ultimately, the airline aspires to achieve net-zero emissions by 2050.

Qantas urges the Australian government to introduce a SAF blending mandate to expedite progress in sustainable aviation fuel production. This call to action aligns with global trends, as other jurisdictions, including the UK, Europe, and Japan, have already set or proposed blending mandates of 5 to 10 per cent to be achieved by the end of the decade. The United States has established an ambitious production target of 3 billion gallons per year by 2030. Qantas believes that a blending mandate in Australia will stimulate the development of a robust domestic SAF industry, capitalizing on the country’s inherent advantages in fuel production.

Andrew Parker, the Qantas Group Chief Sustainability Officer, emphasized the airline’s holistic approach to combating climate change, stating, “Managing climate change is now built into how we do business and is a key part of our strategy through to 2030 and beyond.” Parker further highlighted the importance of collaboration between governments and industry stakeholders to create markets for new fuels and ensure the success of sustainable initiatives.

Qantas has already made substantial progress in its sustainability journey. The airline has implemented sustainable aviation fuel for its flights departing from London and has committed to purchasing 10 million litres annually starting in 2023. By 2025, Qantas plans to increase this volume to 20 million litres per year for flights departing from California. However, these volumes are currently sourced from overseas, and Qantas recognizes the need to bolster local production to achieve its ambitious targets.

Beyond emissions reduction efforts, Qantas has integrated climate change considerations into its financial framework, linking performance against climate targets to executive remuneration starting from FY23. The company has also launched initiatives such as the Fly Carbon Neutral program, allowing customers to offset their flights, and the Green Tier for frequent flyers, enabling over 400,000 individuals to reduce their environmental footprint. Additionally, Qantas has committed to eliminating single-use plastics by 2027 and ensuring zero general waste (excluding quarantine waste) goes to landfill by 2030.

The Qantas Climate Fund signifies a landmark moment in the aviation industry’s sustainability journey. As Qantas takes the lead in pioneering sustainable practices, other airlines are expected to follow suit, reshaping the sector and demonstrating a united commitment to a greener future. With its significant investment and forward-thinking strategies, Qantas sets a new standard for the global aviation industry. It cements its position as a trailblazer in the fight against climate change.

Written by: Jill Walsh

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