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In a monumental step towards achieving a carbon-neutral future, Bank of America has emerged as the first financial institution to join the Sustainable Aviation Fuel (SAF) program, a green initiative developed by American Express Global Business Travel (Amex GBT) and Shell Aviation. This SAF program, one of the largest in the world, was launched in 2022 and now boasts Bank of America as a critical participant, raising the profile of this ambitious sustainability venture.

The initiative, run on the innovative Avelia platform, features a pioneering blockchain-enabled digital SAF book-and-claim solution for business travel. This is designed to transform aviation fuel supply chains, making them more efficient, secure and transparent. Bank of America’s entry signals a substantial shift in the finance sector’s attitude towards achieving sustainability goals.

As Andrew Crawley, President of Amex GBT, explained, “The business travel sector has a critical role to play in scaling SAF and accelerating the decarbonization of travel. We will move closer to achieving these objectives with more companies like Bank of America making bold commitments.”

The aviation industry has long been identified as a critical contributor to greenhouse gas emissions. The emergence of SAF as a viable alternative presents an exciting opportunity to decarbonize air travel. Yet, despite its promising potential, SAF currently constitutes less than 0.1% of all aviation fuel, primarily due to its considerably higher costs. This innovative program from Amex GBT and Shell Aviation, bolstered by Bank of America’s commitment, seeks to unite the aviation value chain to increase SAF supply and demand, ultimately driving down costs and making it a more accessible option.

The growing momentum behind the program is also mirrored by the diverse range of companies already involved, including Aon, Cathay Pacific, JetBlue, and Delta.

Bank of America’s commitment to this initiative is ambitious. As Beth Sullivan, Head of Global Corporate and Executive Travel at Bank of America, revealed, the bank strives to ensure that “SAF account for at least 20% of our annual employee air travel by 2030.” This goal is a testament to the bank’s determination to take tangible steps towards creating a more affordable and accessible sustainable aviation fuel market.

Jan Toschka, President of Shell Aviation, praised Bank of America’s bold move, commenting, “It’s brilliant to see Bank of America leading the finance sector’s charge to decarbonize business travel through SAF.” He added that corporations choosing to fly on SAF hold the power to catalyze the upscaling of this technology and accelerate decarbonization in the aviation sector.

The strategic partnership between Amex GBT, Shell Aviation and Bank of America is a powerful testament to the private sector’s role in driving sustainable practices. This collaboration is integral to the Sustainable Markets Initiative, a private sector-led initiative co-chaired by Bank of America’s CEO Brian Moynihan, to accelerate the transition towards a sustainable future.

The World Economic Forum, an essential international body for public-private partnership, has expressed its support for the initiative. Lauren Uppink, Head of Climate Strategy, stated that the commitment of companies like Bank of America signifies transitioning from pledges to actual business practices, leading the way towards a sustainable future.

By participating in this initiative, Bank of America strengthens its commitment to sustainable finance to mobilize $2 billion for SAF production of 1.2 million gallons of SAF per year starting in 2025. This goal forms part of the bank’s more significant commitment to direct $1.5 trillion over ten years to sustainable finance initiatives, indicating its dedication to environmental and social issues.

This initiative promotes greener air travel and sets a powerful precedent for other financial institutions. The move by Bank of America is an encouraging sign of the shift towards sustainable practices within the corporate world. As more corporations join the green flight revolution, the goal of decarbonized air travel is becoming increasingly achievable.