ICAO and IRENA join forces to accelerate access to financing and implementation of aviation decarbonization projects

Montréal, 7 October 2024 - In a crucial step towards achieving the aviation sector's goal of net-zero carbon emissions by 2050, the International Civil Aviation Organization (ICAO) and the International Renewable Energy Agency (IRENA) have signed a landmark agreement to boost financing opportunities for sustainable aviation fuels (SAF) and other cleaner aviation energy projects.

The Memorandum of Cooperation signed by ICAO Secretary General Juan Carlos Salazar and IRENA Director General Francesco La Camera at the G20 Energy Ministerial meeting in Foz do Iguaçu, Brazil, will allow the exploration of pathways to operationalize the ICAO Finvest Hub by facilitating the identification of financial resources for scaling up SAF, Lower Carbon Aviation Fuels (LCAF), and other cleaner energy solutions.

"The aviation clean energy transition is fundamental to achieving our net-zero Long-Term Global Aspirational Goal (LTAG), as it has the potential to contribute to the majority of required emissions reductions. This new cooperation with IRENA is an opportunity to accelerate the energy transition of the aviation sector worldwide," said ICAO Secretary General Salazar. "ICAO is fully committed to supporting the four building blocks needed to achieve this goal - policy and planning, regulatory frameworks, implementation support, and financing."

The ICAO LTAG report estimates that approximately $3.2 trillion in investments will be needed for cleaner aviation fuel production alone. While ICAO's Assistance, Capacity-building and Training for SAF (ACT-SAF) programme already provides implementation support such as initial feasibility and economic studies, the Finvest Hub is expected to play a crucial role in facilitating the matchmaking between the financing needs of project developers and the financing priorities of States, multilateral development banks and private financers.

Secretary General Salazar emphasized ICAO's commitment to making aviation clean energy affordable, attractive, and accessible globally: "This relationship with IRENA enhances our capacity to drive investment and support project implementation, bringing us closer to our environmental goals. At the same time, we continue to work on advancing all aspects of the net zero framework."

The IRENA Director-General Francesco La Camera added: "We are delighted to partner with ICAO to mobilize investment in renewable energy and decarbonization projects in the aviation industry. Through the IRENA Energy Transition Accelerator Financing (ETAF) Platform, we find climate finance solution dedicated to advancing the global energy transition by facilitating investment. The global energy transition needs all hands on deck and this cooperation is a clear expression of it."

ICAO will continue its advocacy and outreach efforts, organizing dialogues with States and stakeholders to address financing needs, support project implementation, and identify opportunities to increase access to public and private capital for aviation decarbonization projects.