Air New Zealand (NZ, Auckland International) is axing its 2030 science-based carbon intensity reduction target and withdrawing from the UN-backed Science Based Targets initiative (SBTi), becoming the first major carrier to abandon its medium-term carbon reduction goals.

In a July 30 New Zealand Stock Exchange filing, the airline said the unavailability of new aircraft, the affordability and unavailability of alternative jet fuels, and local and international policy support and regulations were factors in its decision.

"In recent months, and more so in the last few weeks, it has also become apparent that potential delays to our fleet renewal plan pose an additional risk to the target's achievability," said Air New Zealand's CEO Greg Foran. "It is possible the airline may need to retain its existing fleet for longer than planned due to global manufacturing and supply chain issues that could potentially slow the introduction of newer, more fuel-efficient aircraft into the fleet."

Air New Zealand has heavily promoted its sustainability targets, which among other things included using sustainable aviation fuel for 10% of its uplift by 2030. The airline had said it wanted to reduce carbon intensity by 28.9% by 2030 compared with 2019. However, last year, Foran said the SBTi set in 2022 would be difficult to achieve and some of what was needed to make it happen was beyond the airline's control. "It takes a village," he said.

Recently, one of the next-generation green fuel start-up aircraft manufacturers that Air New Zealand had partnered with to help meet its carbon emission goals, went bust. Universal Hydrogen successfully conducted a hydrogen fuel cell-propelled demonstration flight using a 40-passenger ATR - Avions de Transport Régional aircraft in 2023, but called it a day in late June after investors declined to tip more cash into the enterprise.

A change of government in New Zealand in October 2023 has also taken some of the heat out of local environment campaigns, with the new centre-right government winding back some of the more ambitious targets set by the previous government.

Air New Zealand says it remains committed to an industry-wide goal of achieving net zero emissions by 2050 and is working on a new near-term climate target.