Aviation's Path to Climate-Neutral Skies

This technical report from Allianz Research outlines the challenges and pathways for achieving climate neutrality in the aviation sector by 2050. It details the current emissions footprint of aviation, which accounts for approximately 2.5% of global CO₂ emissions, and the additional impacts from non-CO₂ emissions, increasing the sector's contribution to climate change. The report presents a roadmap that emphasizes the importance of Sustainable Aviation Fuels (SAFs) to reduce CO₂ emissions significantly, despite their current limited deployment. It discusses the financial implications of carbon credits and market-based mechanisms, such as CORSIA and EU ETS, which aim to offset emissions while supporting the transition to sustainable practices. Additionally, the report highlights the necessity for investment in new technologies, aircraft modernization, and operational efficiencies to align with net-zero targets. By 2050, an estimated $5.1 trillion investment will be required across multiple areas, including renewable electricity and SAF production, to mitigate the sector's carbon footprint while accommodating rising global demand for air travel.