Jetrader

Sustainable Aviation’s Hard Truth: Progress Is Real, but the Path Is Fragmented

Aviation’s path to net zero is becoming clearer, but not simpler.

At the ISTAT Sustainability Symposium, held Tuesday, 28 April, at SMBC Aviation Capital’s headquarters in Dublin, speakers across the sessions returned to a shared reality: The industry has tools available today to reduce emissions, but scaling them will require better alignment across policy, capital, technology, energy markets and the broader aviation value chain.

The day’s theme, “Sustainable Skies: Investing and Financing Our Future,” framed sustainability not only as an environmental priority but as a question of resilience. For Peter Barrett, CEO of SMBC Aviation Capital, that distinction matters.

In his welcome remarks, Barrett emphasized aviation’s role as “a force for good,” connecting families, businesses, cultures and communities around the world. At the same time, he acknowledged the scale of the challenge facing the industry. There will not be one solution, he said, but several.

One tangible step is helping airlines access the most fuel-efficient new-technology aircraft. Another is supporting research and innovation, including the Trinity College Dublin SAF Research Facility at SMBC Aviation Capital, which Barrett described as an example of meaningful action that can help make the industry more sustainable over the long term.

He also connected sustainability to broader industry resilience, pointing to fuel prices, conflict in the Middle East and geopolitical volatility as reminders that aviation’s dependence on conventional fuel creates exposure well beyond emissions.

No Single Lever Will Be Enough

In the keynote presentation, “Pathways to Sustainable Aviation in Changing Times,” Stephen Dooley, professor of energy science at Trinity College Dublin and director of the Trinity College Dublin SAF Research Facility at SMBC Aviation Capital, outlined the range of levers available to aviation, including higher load factors, new-generation aircraft and sustainable aviation fuel.

His message was direct: The industry should not count on a disruptive, game-changing technology to solve the problem.

Instead, progress will depend on using the levers already available and scaling them with discipline. Sustainable aviation fuel (SAF) remains central to that outlook, but Dooley emphasized that how SAF is produced matters. Feedstock, production pathway, transport distance and carbon intensity all affect whether a fuel meaningfully advances the industry’s climate goals.

According to Dooley’s presentation, oil still accounts for nearly all aviation fuel, though SAF’s share has grown. He noted that SAF represented 0.53% of aviation fuel, up from 0.05% when he gave a similar talk the previous year. That growth is meaningful, but it also illustrates how far the industry still has to go.

Dooley also pointed to policy misalignment as a major constraint. The U.S., Europe and China are taking different approaches to SAF feedstocks and regulation. For example, some pathways available in the U.S. are not accepted in Europe. That lack of alignment can limit economies of scale, widen the price gap and weaken competitiveness.

His conclusion was less about invention than organization. The technologies needed to bridge the gap already exist in many cases, but the industry needs coordinated action, pragmatic policy decisions and a willingness to evaluate feedstocks and pathways on a case-by-case basis.

Access Dooley’s presentation.

Geopolitics Is Changing the Sustainability Conversation

The following panel, “Flying Through Turbulence: Geopolitics and Aviation,” extended that discussion into the current operating environment.

Moderated by Eduardo Mariz, senior analyst and sustainability lead at Ishka, the panel featured Claudia Huegel, senior director and head of ESG rating and reporting at Lufthansa Group; Shane Matthews, head of strategic and market analysis at SMBC Aviation Capital; Ross McKeand, senior vice president of portfolio strategy at Avolon; and Erin Smith, senior business development manager at Estuaire.

The discussion centered on how volatility affects sustainability decisions. Panelists noted that the current crisis is different from previous fuel-price shocks because it is not only about price but also supply. Airlines are responding by cutting capacity, consolidating flights and monitoring route economics closely.

For lessors, fleet composition is an important part of the response. Matthews noted that SMBC Aviation Capital’s young, liquid fleet gives it an advantage when airlines are seeking more efficient aircraft during periods of volatility. Across the market, conversations about new-technology aircraft have increased as airlines look for ways to control fuel burn and manage operating risk.

Huegel described how Lufthansa Group is managing higher fuel costs and operational uncertainty, including route decisions, aircraft profitability reviews and crisis monitoring. She also pointed to the importance of new aircraft deliveries, noting that fleet renewal remains one of the most important levers available to reduce emissions.

Other operational measures also surfaced, including in-flight optimization, route efficiency and technologies such as electric taxiing systems. Estuaire’s work with airlines on flight-level emissions and fuel-efficiency analysis illustrated how granular operational data can support immediate reductions.

A Wake-Up Call for Europe

Several speakers connected the current energy crisis to the need for faster SAF production and stronger energy security. The discussion positioned SAF not only as a decarbonization tool but as part of a broader strategy to reduce exposure to fossil fuel volatility.

Europe’s position drew particular attention. Panelists described the current situation as a wake-up call, especially as China continues to advance in areas such as electric vehicles, batteries and solar power. While there was skepticism that China would lead the next generation of aviation hardware, speakers recognized its strength in broader energy transition technologies.

The panel also reinforced the importance of aircraft availability. With structural undersupply still affecting the market, older aircraft are staying in service longer. That creates a sustainability challenge, but panelists also noted that existing aircraft can still be optimized through operational improvements and targeted technologies.

Progress Requires Alignment

Across the sessions, it was clear that aviation’s sustainability challenge is not limited by ambition. It is limited by alignment.

SAF production needs policy support and harmonization. Airlines need access to efficient aircraft. Lessors need clear signals from OEMs and customers. Governments need to help de-risk early markets. The energy system needs to support aviation’s transition without undermining competitiveness and safety.

The industry has made progress, but the next phase will be harder. Moving from pilots, mandates and early adoption to meaningful scale will require choices that are technical, financial and political.

As Barrett noted in his welcome remarks, progress is possible. But the symposium’s discussions made clear that progress will depend on whether the aviation value chain can move together quickly enough.

All ISTAT ONLINE OFFERINGS