Lufthansa to Buy $250 Million of Green Fuel to Curb Emissions
(Bloomberg) -- Deutsche Lufthansa AG said it would buy $250 million of sustainable jet fuel, although its greenhouse gas emissions will still rise substantially as the German carrier adds back flights.
Europe’s largest airline group will acquire the alternative stocks over the next three years, with the investment equivalent to about 1% of its bill over that period, according to Bloomberg calculations.
Lufthansa has a mixed record when it comes to curbing emissions. While the company has invested in more fuel efficient jets, its planes are usually emptier than those of rivals including Ryanair Holdings Plc, meaning a Lufthansa flight typically generates more emissions per passenger.
The three-year period in question is also likely to coincide with a significant upturn in air traffic as the corporate and leisure travel industries recover from the coronavirus pandemic. Lufthansa is expecting to offer 70% of normal capacity in 2022, according to an earnings report released Wednesday, with that figure like to rise in subsequent years.
Still, the airline has taken initial steps toward reducing its environmental impact, differentiating itself from some major rivals. Lufthansa aims to halve its emissions by 2030 compared with 2019 and achieve a neutral balance by 2050, helped by offsets.
The carrier’s greenhouse gas emissions hit an all-time record of more than 32 million tonnes in 2019, before the pandemic burst a decades-long boom in aviation. Lufthansa’s emissions then fell to 11 million tonnes in 2020, while the carrier’s plans for next year imply a figure of about 22 million tonnes of carbon dioxide.
“We stand by our responsibility with full conviction and are doing everything we can to make aviation even more sustainable in the future,” Lufthansa Chief Executive Officer Carsten Spohr said.
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