In this episode of our ‘Sustainability in the Air’ podcast, Anna Stratton, Associate Director, Aviation at ClimateWorks Foundation, speaks with SimpliFlying’s CEO Shashank Nigam and shares how philanthropic funding can accelerate aviation’s transition to net zero.
As one of the few foundations with a dedicated aviation strategy, ClimateWorks has granted over $2 billion to more than 850 grantees across 50 countries, establishing itself as a pivotal force in climate action. Their focus spans crucial areas including sustainable aviation fuels (SAF), zero-emission aircraft development, contrail mitigation, and thoughtful demand management initiatives.
[Please note: This interview was recorded in September 2024. ClimateWorks has since updated its 2024 transportation grants, with $5.5M allocated to aviation, $72.3M to road transportation, and $13.3M to maritime shipping, bringing the total to $91.1M. The updated data is available on their website.]
Here are the key highlights of the conversation:
ClimateWorks’ unique role as a philanthropy re-granter (3:24)
Aviation decarbonisation strategy and focus areas (5:31)
Business travel demand reduction and the Travel Smart campaign (7:05)
Europe’s ReFuelEU policy as a model for SAF development (13:54)
Hydrogen’s potential for short and medium-haul flights (20:55)
Contrail mitigation as a near-term opportunity (28:47)
The importance of civil society in driving change (32:45)
Global equity in aviation’s green transition (35:56)
Rapid fire! (42:49)
Keep reading for a quick overview of the episode.
Why strategic philanthropy matters in aviation’s net-zero transition
ClimateWorks operates as what Stratton describes as a “re-granter,” taking a unique approach to funding climate solutions. “We receive money from other philanthropic organisations, and then in collaboration with those organisations, as well as our partners, we come up with strategies specific to sectors or regions,” she explains.
The foundation’s work spans three essential services:
Providing insights and data on opportunities for philanthropy
Convening funders with implementing partners and
Developing strategic programmes for specific sectors or regions
Stratton emphasises that civil society must drive change, with philanthropy playing a key role in funding and supporting the development of a comprehensive plan for the transition.
She adds that “philanthropic dollars do not compete with government dollars, with industry dollars. But what we can do really effectively is see the research and analysis, create the public discourse needed to then advance the policy, the regulation, the investments that are really needed to drive decarbonisation.”
5 ways ClimateWorks is thinking about sustainable aviation
1. Setting the standard for SAF policy
When discussing effective SAF policies, Stratton points to Europe’s ReFuelEU legislation as the benchmark. She outlines three crucial features: “It’s long-term, it starts now and it goes to 2050. So you have that regulatory certainty that we need for this nascent market.” The policy also includes specific e-fuel SAF mandates and robust safeguards preventing bio-feedstock SAF from competing with food crops or leading to deforestation.
This contrasts sharply with the U.S. approach, where Stratton notes “the US has missed out on the opportunity to create that long-term certainty. The credits for SAF end at the end of 2027. It doesn’t have dedicated support for e-fuels, and then the safeguards for biofuels are either missing or they’re very actively under threat by industry.”
Addressing concerns about feedstock availability, Stratton acknowledges the need for geographic specificity while maintaining standards:
“We need to try to set consistent standards in terms of the impacts feedstocks have on land use, on food and feed crops. Feedstocks that are available in Europe will, of course, differ from what’s available in China versus what’s available in the US versus what’s available in Brazil. But what are the common sustainable principles that we are applying?”
2. Rethinking growth and demand management
A central theme in Stratton’s vision is the need to reimagine aviation growth. “We’ve known for a long time now that the combination of technology deployment timescales and the climate crisis means that if we’re going to put the sector on a credible pathway to aviation decarbonisation, we have to reimagine growth and we have to acknowledge that business-as-usual growth trajectories are incompatible with the achievement of our climate goals.”
She highlights their work with corporate travellers through the Travel Smart campaign, which “provides thought leadership in terms of how companies can start to reimagine their policies.” She adds, “What’s exciting about it is that it’s not about stopping travel altogether, but rather about creating a more methodical policy so that air travel becomes the last resort, not the default, for employees.”
3. The hydrogen and infrastructure challenge
On hydrogen’s potential, Stratton presents an optimistic but measured view. “We are excited about its potential both for short and medium haul,” she says, suggesting hydrogen could service “a majority of short and medium haul by 2035, which would be about a third of passenger aviation demand.”
She outlines three fundamental requirements: “The first is, of course, the available supply of green hydrogen needs to increase. And we also need to ensure that aviation is positioned as an offtaker for that supply. The second is we need much more significant investment in the R&D of hydrogen powered aircraft. And the third is the [necessary] infrastructure.”
Stratton also highlights ClimateWorks’ Unlocking the Potential of Green Hydrogen report, which offers an in-depth analysis of the challenges and opportunities for scaling green hydrogen, and explores broader applications across multiple sectors, not just aviation
4. The contrails opportunity
One of the most promising immediate opportunities lies in contrail mitigation. “We are super excited by non-CO2 and contrail solutions as being a really near-term implementable climate mitigation opportunity,” Stratton emphasises. She outlines some key solutions for contrail mitigation: “Route optimisation would be the first and foremost solution, followed by hydro treatment of jet fuel for both its non-CO2 and public health benefits. Longer term, we’re excited to see how SAF and zero emissions planes could reduce contrails.”
Regarding industry resistance to the European Commission’s monitoring regulation, Stratton notes: “The European Commission’s monitoring, reporting and verification regulation, would have led to new insights about contrails and their formation. There was a lot of pushback from industry on the regulation, in particular the US airlines. And so the commission has now amended that regulation, so it doesn’t apply until 2027 onward.”
She challenges this delay, stating, “If there is so much uncertainty, if we want to understand [contrails] better, we should be doing exactly [what the EU legislation proposed] – monitor, report, and verify.”
She further urges industry action, emphasising the opportunity contrail reduction entails, especially given the amount of heat contrails can trap in the earth’s atmosphere and contribute to global warming.
5. Global equity in aviation’s net-zero transition
ClimateWorks’ vision for aviation equity extends beyond just technology access. It encompasses a fundamental rethinking of how the sector grows and who bears the responsibility for its transformation.
“Historically, the US and Europe have flown the most and contributed the largest share of emissions from aviation. Therefore, we believe they must take the lead by investing in and paying the green premium for the new technologies we need. They should also reconsider their growth strategies and projected demand to ensure there is room for other regions to enjoy the privilege of travel.”
This pragmatic yet ambitious approach to aviation decarbonisation seeks to ensure that emerging markets are not left behind on the path to sustainable aviation, while historically high-emitting regions are held accountable for leading the transition.
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