If we go through all the human obligations for a second, the biggest one we’ll find is our obligation to change. You see, no matter how good of a situation we are in, we have to make some tweaks every once in a while, as that’s pretty much how we grow. Nevertheless, the sheer significance of it doesn’t make the process any easier, so to aid our cause, we would develop certain avenues along the way. While all these avenues went on to play an integral role in our individual and collective growth, none of them even came to doing what technology did. As soon as it turned up on the block, technology had our attention like nothing else. There was surely some hesitation too, but it will dissipate over time, freeing up the space for a full-fledged tech revolution. Before we knew, we were in a whole new reality, a reality that was much better than our wildest dreams. However, make no mistake, there was still a flipside present in the picture, and it talked to technology’s impact on the environment. With the issue of climate change getting more and more severe every day, we now face an urgent need to take an action. Fortunately, a recent coalition takes us into that very direction.
Six of the leading aviation lenders, including Societe Generale, Bank of America, Crédit Agricole CIB, Citi, Standard Chartered, and BNP Paribas, have come together to create a climate-aligned finance framework (CAF), which will focus on decarbonizing the aviation industry. At present, aviation industry is responsible for over 2.5% of global C02 emissions. This number is expected clock 10% by 2050. Knowing we cannot afford to get there, CAF provides a timely antidote by bringing greater transparency within the operations of all financial institutions. As per certain reports, CAF is designed to enable these organizations in regards to having a better knowledge about their aviation loan books’ emission. Beyond that, the framework notably gives a thought to funding lower carbon solutions and other technologies. For instance, the aviation industry and its partners are actively looking to invest in more efficient aircrafts, make sustainable aviation fuels (SAF) a part of the mainstream setup, and develop newer aviation systems.
“Our intention is to propose a robust and effective framework for the benefit of all stakeholders in aviation finance including banks, investors, airlines and lessors. We firmly believe that decarbonization is key to ensure the long-term future of the aviation industry,” said José Abramovici, the global head of asset finance group at Crédit Agricole CIB.