2 1 Shi Ji Jing Ji Bao Dao·2025-10-28 09:37Core Insights - Cathay Pacific Group and Airbus have announced a joint investment agreement to support sustainable aviation fuel (SAF) projects, committing up to $70 million (approximately HKD 545 million) for development in Asia and globally [1][7]. Industry Trends - Major airlines are increasingly investing in the upstream SAF industry to address the financial challenges of achieving net-zero emissions, with initiatives like "green ticket pricing" being introduced [2][4]. - The International Air Transport Association (IATA) predicts that SAF will contribute over 65% of the aviation industry's emissions reductions by 2050, with a demand forecast of 35.8 million tons [4]. Financial Challenges - The aviation industry faces a significant gap between current profit margins and the costs associated with transitioning to net-zero emissions, with estimated annual costs of $174 billion compared to projected net profits of $36 billion [4][6]. - The supply of SAF is expected to fall short of demand, with a projected supply gap of 45% by 2030 due to economic uncertainties and capital-intensive production processes [4][8]. Consumer Engagement - Airlines are launching sustainable flight programs to encourage passengers and corporate clients to pay for SAF or carbon offset credits, with Cathay Pacific's additional charge for 100% SAF contribution on a round trip from Hong Kong to Beijing estimated at HKD 1,578.78 [5][6]. - The willingness of corporate clients with ESG commitments to pay for "green flights" is stronger compared to individual travelers, indicating a potential market for SAF initiatives [6][8]. Government Initiatives - Local governments in regions like Hong Kong, Sichuan, and Shanghai are actively working to establish SAF supply chains, with Hong Kong aiming to develop a local SAF industry and enhance its competitive edge [9][10]. - The Singapore government is exploring a sustainable aviation fuel tax to fund SAF procurement, which could serve as a model for other regions [6][7]. Market Opportunities - The strong raw material advantages in the Chinese mainland market are creating more opportunities for SAF development, with various projects underway to establish a comprehensive SAF industry chain [11].