How air cargo is moving toward net-zero emissions by 2050

Oct 31, 2024

Air cargo plays a crucial role in global trade, enabling fast, reliable transportation of goods across continents. From life-saving medical supplies to everyday consumer products, air cargo is the backbone of many industries. However, this vital sector is also grappling with a significant challenge: sustainability. As the demand for air cargo services continues to rise—driven by the growth of e-commerce, pharmaceuticals, and perishables—so does its environmental footprint. Air cargo currently accounts for around 2-3% of global carbon emissions, which is expected to grow if left unchecked.

In response, the air cargo industry is undergoing a major transformation, with stakeholders, including airlines, airports, logistics providers, and regulators, now focusing on sustainability as a top priority. But achieving sustainability in air cargo is a complex challenge. It involves rethinking fuel sources, optimising operations, and adopting new technologies—all while maintaining the speed and reliability that the industry is known for. The road to sustainable air cargo may be long, but the industry is making strides toward a greener future.

At the 80th International Air Transport Association (IATA) Annual General Meeting (AGM) and World Air Transport Summit in Dubai in June 2024, Marie Owens Thomsen, Senior VP of Sustainability & Chief Economist at IATA, cited aviation pioneer Edward Vernon Rickenbacker, who once said, "Aviation is proof that, given the will, we have the capacity to achieve the impossible," Thomsen emphasised that by working together and forging strong partnerships across the value chain, the industry can turn the impossible into reality.

Similarly, in a recent interaction with The STAT Trade Times, Chandrakala Bobba, Director, Bobba Group said, "Sustainability is a shared responsibility that the entire industry must embrace, and on World Sustainability Day (October 26), we reflect on how far we have come and the road ahead. Across sectors, companies are adopting innovative practices that reduce environmental impact and enhance resource efficiency.”

To explore initiatives how the aviation industry and the entire air cargo sector is pacing towards its goal to achieve net zero emissions by 2050, The STAT Trade Times launched - Future of Transport: Innovative and Sustainable, an air cargo series brought to you in partnership with Edmonton International Airport (YEG).

Edmonton International Airport prioritises sustainability by collaborating with airlines, tenants, and partners to lead in waste management and recycling. YEG reuses materials like asphalt millings in runway projects and adopts eco-friendly technologies like CarbonCure for greener construction. Stormwater is repurposed for construction, and materials are salvaged from electrical projects, making sustainability a key focus in all operations

The Canadian airport also claims “We are the future home of Airport City Solar, the world’s largest solar farm at an airport.” They've built a $12 million natural gas cogeneration plant, reducing the main terminal’s carbon footprint by 20%. Over 18,000 light fixtures have been replaced with energy-efficient LEDs. YEG also supports testing new fuel-efficient aviation technologies and sponsors biofuel research for aircraft at the University of Alberta.

The environmental footprint of air cargoAir cargo’s environmental impact is primarily linked to its reliance on jet fuel, a fossil-based energy source. While air cargo represents less than 1% of global trade by volume, it accounts for about 35% by value, highlighting its role in transporting high-value, time-sensitive goods. The very nature of air freight—fast, global, and efficient—means that reducing its carbon footprint is a unique challenge.

Carbon emissions from cargo planes contribute significantly to global greenhouse gases. Additionally, the extensive use of single-use packaging materials, particularly in temperature-sensitive goods like pharmaceuticals, contributes to waste. Airports and ground operations also play a role in the overall environmental impact, with energy-intensive activities such as refrigeration, lighting, and vehicle emissions adding to the sector’s carbon footprint.

“At Bobba Group, we are contributing by repurposing condensation in cold storage systems, using recycled plastic pallets, and prioritising eco-friendly packaging. Our solar-powered facilities, biodegradable pallets, and pallet pooling programmes further support our mission to reduce waste and extend the life cycles of resources,” said Bobba.

Rising regulatory pressure and c-suite commitmentAccording to The International Air Cargo Association (TIACA), there is increasing pressure from regulators for businesses to focus more on sustainability. TIACA’s Air Cargo Sustainability Insights Report from February 2024 found that the regulatory pressure has surged, with 61% of respondents indicating its importance—up from 37% in 2021. This represents a six-point increase from the previous year and a remarkable 24-point increase compared to 2021.

As a direct result, sustainability is now a priority for the C-suite. The report reveals that 91% of respondents confirmed support for sustainability initiatives from their CEO, with 97% highlighting that sustainability is equally or more important than in the previous year. TIACA’s Director General, Glyn Hughes, stated, “We see significant increases in organisations’ focus on energy efficiency and carbon footprint reductions. Fleet renewals feature in airline and ground handler strategies, as well as green, more efficient buildings and optimisation strategies leveraging innovation and digitalisation.”

This shift in mindset among top executives signifies a critical turning point for the air cargo industry. By prioritising sustainability, companies are not only adhering to regulatory pressures but are also positioning themselves as responsible players in a market increasingly concerned about environmental impact.

Sustainable aviation fuels: Is it a game-changerOne of the most promising solutions for reducing the environmental impact of air cargo is the use of Sustainable Aviation Fuels (SAF). These fuels, produced from renewable sources like waste oils, agricultural residues, and even captured CO2, have the potential to reduce lifecycle carbon emissions by up to 80% compared to conventional jet fuel. For air cargo, which is heavily dependent on long-haul flights, SAF offers a viable way to maintain operations while reducing emissions.

However, the adoption of SAF in air cargo is still in its early stages. Currently, SAF represents less than 1% of total aviation fuel usage, with higher costs and limited availability being the primary barriers to widespread adoption. Yet, the potential is undeniable. Major cargo airlines like FedEx, DHL, and UPS have already begun exploring SAF as a way to cut their emissions.

Governments and industry organisations are also pushing for the widespread adoption of SAF. IATA has set a goal for the aviation industry to achieve net-zero carbon emissions by 2050, with SAF expected to contribute around 65% of that reduction. This ambitious target underscores the importance of SAF in the future of sustainable air cargo.

YEG is advancing hydrogen fuel infrastructure through its Airport City Sustainability Campus, hosting North America's leading Hydrogen Hub. This initiative supports hydrogen-powered shuttle buses, industrial fuel conversions, and SAF development. YEG aims to unlock Edmonton’s hydrogen potential and bolster the hydrogen economy, with the Edmonton Metro Region producing 60% of Canada's hydrogen, making it a global leader.

In fact, YEG and Toyota Canada are introducing Alberta’s first fleet of 100 hydrogen fuel cell vehicles (FCEVs) to support YEG’s net-zero goal. These Toyota Mirai vehicles will reduce emissions and be used by YEG operations and partners. YEG is also collaborating with companies to develop retail hydrogen fueling stations for FCEVs, advancing Alberta's clean fuel infrastructure. In an exclusive interview with The STAT Trade Times, Myron Keehn, President & CEO of Edmonton International Airport (YEG), shared that he personally drives a hydrogen-powered vehicle whenever he is at the airport.

Technological innovations in aircraft and operationsWhile SAF offers a promising solution for reducing emissions, technological advancements in aircraft design and operations are also essential for making air cargo more sustainable. Aircraft manufacturers are already working on next-generation cargo planes that are lighter, more fuel-efficient, and equipped with advanced aerodynamics. These innovations help reduce fuel consumption, which is the largest contributor to carbon emissions in air cargo operations.

The Airbus A350 and Boeing 777X are examples of modern aircraft that offer greater fuel efficiency, reducing emissions per ton-kilometre transported. Moreover, electric and hybrid-electric aircraft, while still in development, have the potential to revolutionise short-haul air cargo operations in the future.

In addition to aircraft design, optimising air cargo operations is another critical aspect of sustainability. Airlines and logistics companies are increasingly adopting data-driven solutions to improve fuel efficiency, reduce empty cargo space, and streamline supply chains. By using machine learning algorithms and advanced analytics, cargo operators can forecast demand more accurately, optimise flight routes, and minimise the need for last-minute, fuel-intensive operations. These improvements not only reduce emissions but also lower operational costs, making sustainability a win-win for the industry.

The role of airports and ground handlingSustainability in air cargo goes beyond the aircraft itself. Airports and ground handling operations also play a significant role in the environmental footprint of the industry. Many airports are now investing in green infrastructure, such as solar power, electric ground support equipment, and energy-efficient lighting. For example, Los Angeles International Airport (LAX) and Amsterdam’s Schiphol Airport have made significant strides in reducing their carbon footprints by installing solar panels and transitioning to electric vehicles for ground operations.

Electric cargo handling equipment, such as forklifts and tugs, is also becoming more prevalent, reducing emissions from airport operations. Moreover, smart warehousing technologies, such as automated storage systems and energy-efficient refrigeration units, help minimise energy consumption in cargo handling facilities.

Packaging waste is another area where the air cargo industry can improve its sustainability. Single-use plastics, often used to protect and transport goods, are a significant source of waste. In response, some logistics providers are exploring reusable and recyclable packaging options. For instance, DHL has introduced eco-friendly packaging solutions for its temperature-controlled shipments, reducing the environmental impact of pharmaceutical and perishable cargo.

Collaboration across the industryAchieving sustainability in air cargo requires collaboration across the entire value chain—from airlines and airports to shippers, freight forwarders, and regulators. Industry organisations like IATA and TIACA are working to align stakeholders on sustainability goals and develop best practices for reducing the environmental impact of air cargo operations.

Public-private partnerships also play a crucial role in accelerating the adoption of sustainable practices. Governments can support the transition to greener air cargo by providing incentives for the use of SAF, investing in sustainable airport infrastructure, and promoting research and development in alternative propulsion technologies.

In 2022, Heathrow launched a SAF incentive programme to reduce its environmental impact. The scheme supports the use of up to 155,000 tonnes of SAF in 2024, aiming to cut over 340,000 tonnes of carbon from flights. With £71 million in funding, airlines are incentivised to switch to cleaner fuels.

Furthermore, transparency and visibility in the supply chain are becoming increasingly important. Customers and consumers are demanding more information about the environmental impact of their shipments. Cargo operators that can provide data on carbon emissions, fuel efficiency, and sustainable practices will have a competitive advantage in a market that is increasingly driven by sustainability concerns.

The way forward: A greener future for air cargoThe journey toward sustainable air cargo is fraught with challenges, but the industry is making significant progress. By adopting SAF, embracing new technologies, and optimising operations, air cargo can continue to support global trade while reducing its environmental impact.

The future of air cargo lies in innovation, collaboration, and a commitment to sustainability. With the right investments and a collective effort from stakeholders across the industry, air cargo can play a key role in building a greener, more sustainable global economy. The path ahead is challenging, but it is one that the industry must navigate to secure its future.

Stay tuned and keep watching the series Future of Transport: Innovative and Sustainable, an air cargo series brought to you in partnership with Edmonton International Airport (YEG).

Rajarshi is an editorial professional with nearly a decade of experience in writing content for print and online publications. He has hosted numerous entrepreneurship events and moderated sessions at various events, including Flower Logistics Africa. He has previously worked with reputable organizations such as YourStory, YouGov, Inc42, and Sportskeeda and has catered to a diverse range of clients, including Google, PhonePe, the Karnataka State Government, and the Rajasthan State Government. In addition to writing, he enjoys watching films, cooking, and exploring offbeat locations in India.