By Jamie Freed

SYDNEY (Reuters), Qantas Airways Ltd aims to cut carbon emissions by 25% by 2030. Partly, it will increase sustainable aviation fuel use to 10% and improve the efficiency of flight by 1.5% per annum.

Qantas was one of the first airlines to make a pledge to reduce carbon emissions by net zero by 2050. Qantas has since been working to better align with corporate clients looking to drastically cut emissions in business travel long before this date.

On Thursday, Chief Executive Alan Joyce stated that “What we’re seeing in our customer base” was that a large number of people would pay more to sustainably travel.

Several companies, such as HSBC, Zurich Insurance, Bain & Company and S&P Global (NYSE:), have already announced plans to quickly cut business travel emissions by as much as 70%.

Joyce explained that hydrogen or electric-powered aircraft were still decades away. This is especially true for flights of long distances. Joyce suggested that Joyce’s plan was to focus on technology today.

It is consistent with the goal of 10% sustainable aviation fuel by 2030, which was set in October 2021 by oneworld, an alliance that includes it.

IAG, British Airways’ owner (LON) set a goal of 20% net emission reductions by 2030. Finnair sets a higher target for a 50 percent cut in 2019 emissions levels by 2020.

Qantas purchased SAF from London in order to cut carbon emissions by 10%. From 2025 it will be using biofuels for flights between Los Angeles (LA) and San Francisco.

Joyce stated that the airline would invest A$50million ($37.54 Million) in Australia to develop an SAF industry. However, Joyce indicated that more government support was needed.

He said, “It would not be fair if Qantas achieves its 10% sustainable aviation fuel goal in 2030 by purchasing offshore.”

Industry-wide targets of zero net emissions by 2050 are dependent on increasing SAF use from 0.1% to 65% today and new engine technologies.

Qantas has placed a large order for Airbus’ new generation of narrowbody aircrafts. These planes will replace the older Boeing 717s and 737-800s. This would allow for fuel savings up to 15-20%. Qantas announced on Thursday that a firm order was expected to be in place by mid-year.

Andrew Parker, Chief Sustainability Officer at the airline, stated that within 10 years there will be hybrid-electric turboprops.

Qantas announced that they would take into account the carbon cost when making investment decisions. They also said that climate change performance targets will be linked to the executive salaries starting with the July financial year.

Qantas has also announced plans to phase out single-use plastics within its wider environmental objectives.

($1 = 1.3321 Australian dollars)