UAE's Etihad Airways expands carbon offsets program with the help of Shell

Dubai — Etihad Airways, the UAE's second biggest airline and the first in the Middle East to launch a self-funded carbon offset scheme, has expanded its offsets program with the help of Shell as it seeks to become carbon-neutral by 2050, the Abu Dhabi-based carrier said Jan. 19.

"Following the purchase of 80,000 tons of carbon offsets in November, Etihad Airways is expanding its offset program in collaboration with Shell," the airline said in a statement.

The airline didn't disclose the size of the expanded offsets program.

Etihad, which is one of the three biggest long-haul flight operators in the Gulf region, plans to reduce its CO2 emissions to net zero by 2050, with an interim target of a 50% cut from 2019 levels by 2035. It will also reduce by 20% emissions intensity from its passenger fleet by 2025.

Last year it issued a $600 million Islamic bond or sukuk linked to its carbon reduction targets.

"Etihad will expand its offset program beyond the original Makame Savannah REDD project in Tanzania to include Peru's Cordillera Azul National Park and Indonesia's Katingan Mentaya Project, making Etihad's efforts geographically diverse in the promotion of climate action," the airline said.

The Katingan Mentaya and Cordillera Azul projects are certified by the Verified Carbon Standard and Climate, Community, and Biodiversity Standard, it added.

Voluntary offsets

Eithad is also introducing a voluntary offset program.

"As well as expanding our self-funded carbon offset program, we are developing the option to allow guests to offset their own journey's emissions," Etihad CEO Tony Douglas said in the statement.

Etihad will work with the New Zealand Carbon Offsetting company CarbonClick to develop its voluntary guest offset program, the CEO added.

"Until sustainable aviation fuel and technology solutions are developed and deployed at scale, offsetting is not a choice but a necessity if companies within the aviation sector are to meet net-zero emissions targets," said Anna Mascolo, president of Shell Aviation, said in the statement.

Etihad is also among the first airlines in the region to use sustainable aviation fuel in its flights.

In January 2019, Etihad flew a Boeing 787 using a blend of conventional jet fuel and SAF, derived from oil in Salicornia plants, which were grown on a two-hectare farm in clean-energy Masdar City in Abu Dhabi. State-owned Abu Dhabi National Oil Co., the UAE's biggest energy producer, was involved in the refining process of the oil.

Etihad is also excited about the possibilities of using synthetic fuel or hydrogen mixed with CO2, Douglas told the Abu Dhabi Sustainability Week summit Jan 19.