Global transport sector: On the flight path to net zero

​This edition of Pathways concludes our examination of opportunities and challenges in reducing carbon emissions within global transport. Take a detailed look at the aviation sector, and learn more about the implications for investors across transport sectors on the path to net zero.

Carbon emissions

Despite initial efficiency gains to help offset the level of emissions, aviation accounts for roughly 10% of transport sector CO2 emissions.

Sustainable aviation fuel (SAF) impact

For SAF to play a key role in decarbonising aviation would require production of around 350 million tonnes (Mt) of SAF per annum. ​

Fuel demand vs. ticket price

As the volume of SAF being utilised grows, airline operating costs and consumer ticket prices are likely to increase.

Expanded public charging infrastructure

To see a significant shift in lowered emissions across the transport sector may require as much as $US25 trillion in capital expenditures (capex). 

Upfront investment considerations

An estimated $US5.5 trillion in fuel alternatives may be needed to decarbonise the aviation and shipping sectors. 

Technological advancements and policy changes are driving significant shifts in the transport sector globally. The drive to reduce carbon emissions across all transport modalities is rapidly transforming market dynamics and presenting investors with both interesting opportunities and difficult challenges.

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Pathways provides market leading analysis on real assets and private markets to help investors navigate these new and rapidly growing asset classes.”

Daniel McCormack, CFA
Head of Research

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