SIA’s net-zero path is not an easy one

THE ability of national carrier Singapore Airlines (SIA) to decarbonise its operations is said to be crucial for its major shareholder Temasek to hit its net-zero targets. The state investor has noted that the only way SIA can reduce its carbon emissions is by switching to sustainable aviation fuel (SAF).

But it’s tough to pass the cost of the much more expensive fuel on to customers, going by the modest take-up of SIA group’s voluntary carbon offset programme.

Temasek reported last week that the total emissions of its portfolio rose to 27 million tonnes of carbon dioxide equivalent for the year ended Mar 31, 2023, up from 26 million tonnes in the previous financial year. The state investor, which actively engages its portfolio companies on their decarbonisation plans, is aiming to be net zero by 2050.