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Aviation industry reliance on carbon offsets remains intact for the short term

Analysis

Although sustainable aviation fuel (SAF) represents the bulk of the aviation industry's efforts to achieve its goal of zero net carbon emissions by 2050, carbon offset and carbon capture mechanisms will also play a key role in the industry meeting its targets - particularly in the short term.

Carbon offsets in particular have endured perception problems due to questions regarding their credibility. But even as the debate over the effectiveness of offsets continues, there are changes occurring in the marketplace to bolster the legitimacy of those mechanisms.

In the short term, as companies, institutions and other industries worldwide work towards their respective sustainability targets, supply challenges could emerge in the carbon offset markets.

More broadly, questions are arising about whether the industry should set interim goals, perhaps to stimulate more investment in technologies that will help airlines meet their longer term aspirations and reinforce the aviation industry's sustainability commitments.

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