PwC joins Hong Kong Sustainable Aviation Fuel Coalition with the aim of decarbonising the aviation industry

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The firm is one of 14 partners in the coalition, founded by Business Environment Council and Cathay Pacific Airways

Hong Kong, 5 March 2024 – As part of its commitment to reaching net zero with 2030 goals, PwC is partnering with a range of organisations in the Hong Kong Sustainable Aviation Fuel Coalition. The coalition was founded by Business Environment Council and Cathay Pacific Airways in response to the latest Policy Address by the HKSAR Government.

“The aim of the coalition is to spearhead decarbonisation within the aviation industry and position Hong Kong SAR as a regional and global hub for sustainable aviation fuel,” says Douglas Johnson, PwC China Net Zero Leader. “PwC is honoured to work together with our coalition partners, leveraging our expertise to help global efforts to tackle the climate challenge.”

Decarbonising the aviation industry will play a significant role in helping global economies achieve their net-zero goals. Sustainable aviation fuel (SAF), comprises bio-jet fuel, which is derived from renewable sources, such as used cooking oils, plant-based feedstocks, agricultural residue and algae, as well as synthetic or e-fuels, which are created through a power-to-liquid (PtL) process, using renewable energy. SAF substantially reduces life-cycle carbon emissions compared to traditional jet fuel, making it a crucial component in reducing the aviation sector's overall environmental impact.

Importantly, many of the original equipment manufacturers (OEMs) of longer-range aircraft have announced a pathway to the 100% usage of SAF by 2030 without major modifications to their existing aircraft fleet. This gives continued confidence to investors and financiers in such aircraft, which typically have a long-dated investment pay-back period.

The coalition partners occupy a range of positions across the SAF value chain, including SAF producers and suppliers, technical agencies and the airport regulator, as well as end-users and non-profit organisations. The partners will meet regularly and contribute to an SAF Ambition Statement and a policy submission to the Government set to be released by the end of 2024.

The main aims of the Hong Kong Sustainable Aviation Fuel Coalition are to:

• Raise awareness among the public, industry players and policymakers of the benefits of SAF. This includes sharing information on its environmental benefits and SAF’s potential to reduce the aviation industry's carbon footprint.
• Advocate for regional and international policies to support SAF. By working closely with governments and regulators, the coalition aims to incentivise the production and use of SAF.
• Encourage airlines, manufacturers and other aviation stakeholders to collaborate on research and development, and to adopt SAF in their operations.
• Support investment and R&D initiatives that drive innovation and reduce the cost of SAF production, making it more accessible to the aviation industry.
• Influence global change in the aviation sector by uniting stakeholders, raising awareness and advocating for SAF policies.
• Develop policies that assist in the maintenance of Hong Kong SAR as an international aviation hub for stakeholders as a whole.

No single stakeholder group can achieve decarbonisation alone. Progress will require a concerted industry effort by all stakeholders. PwC Strategy&’s new report, From feedstock to flight, puts forward five specific and immediate actions that the aviation industry can take to help accelerate SAF adoption and overcome challenges. The report recommends diversifying feedstock sourcing to ensure a more sustainable supply. This requires public–private partnerships and dialogue around international sustainability standards to ensure a more sustainable supply.

“The different stakeholders within the Hong Kong Sustainable Aviation Fuel Coalition aim to deliver an SAF roadmap with actionable solutions for the aviation industry, taking into account the Hong Kong SAR’s role as an important international aviation hub,” says Tejaswi Nimmagadda, Partner, Tiang & Partners (an independent law firm and a member of the PwC network).

Notes to editors

Full report: From feedstock to flight: How to unlock the potential of sustainable aviation fuels