Airline partners from oil companies, to engine makers, plane manufacturers, air traffic controllers and others must do their part in helping the industry to achieve its accelerated climate goals, according to the director general of the International Air Transport Association.
Mr Walsh pressed these partners to contribute in helpIng the industry achieve its net-zero carbon emissions goal, rather than laying the responsibility and cost squarely on carriers' shoulders as they seek to change public perceptions about the industry's environmental impact.
“The ball can’t keep getting passed around, that’s the issue,” Willie Walsh told The National on the sidelines of last week's Iata annual general meeting in Boston.
Among the intermediate steps towards reaching net-zero carbon emissions by 2050, the most important will be for oil majors to ramp up the production of sustainable aviation fuels (SAF) available to airlines, he added.
At the Iata meeting, member airlines pledged to achieve net-zero carbon emissions from their operations by 2050, aligning air transport with the objectives of the 2015 Paris Accord to limit global warming to 1.5°C. The first milestone towards that target is in 2025, when SAF production, with appropriate government policy support, is expected to reach 7.9 billion litres, or 2 per cent of the total fuel requirement.
Airlines are committed to using more SAF, but it was “very difficult” to get a sufficient supply of sustainable biofuel and fuel suppliers have to be pushed to produce more of it, Mr Walsh said. Current engines can theoretically run on 50 per cent sustainable blends.
“Flights are operating with sustainable biofuels, but it’s not at 50 per cent; it’s at about 30 per cent because that’s all the supply that they can get,” he said.
Mr Walsh criticised some oil companies’ announcements to produce extra litres of SAF without any follow-up or action, saying the importance of climate goals has now “gone beyond words”.
“People see that the problem is the airline. They don’t look behind the airline to say, ‘Well, hang on, we don’t produce the fuel, we don’t build the engines, we don’t build the aircraft’," Mr Walsh said. “It’s not that you have to push the airlines. We’re there.”
The Iata chief also urged air navigation service providers to take action to help the industry reach its climate target.
“We hear ANSPs say that they’re committed to net-zero by 2050, and we say, ’That’s great, but what are you going to do to achieve it?’ And they’re not going to do anything because they’re going to expect us to achieve it,“ Mr Walsh said. “And I’m saying sorry, that’s not good enough.”
Air traffic management must also become more efficient to minimise fuel burn and reduce airlines’ costs, he said.
What I’m saying is, sorry guys, if this is an industry heading in the same direction with a single goal, you’re all going to have to contribute
Willie Walsh,
director general of the International Air Transport Association
Airports also expect the airlines to deliver the climate targets, Mr Walsh said.
“What I’m saying is, sorry guys, if this is an industry heading in the same direction with a single goal, you’re all going to have to contribute. The idea that you can sit back and expect airlines to pay for it all is nonsense. For one, we don’t have the money. We’re an industry that was bordering on bankruptcy,” Mr Walsh said. “So it’s not good enough that you’re making these very nice public statements but you’re not prepared to deliver on what needs to be delivered.”
Sustainability was the main theme dominating the panels and discussions at the 77th Iata meeting, where airlines accelerated their climate goals as they come under increasing pressure from environmental activists and politicians.
We’re not doing this to satisfy the critics, we’re doing this because it’s the right thing to do and we’re doing this because we believe that we can achieve this
Willie Walsh,
director general of the International Air Transport Association
Asked if the new targets will satisfy the industry’s critics, Mr Walsh said there would be those who criticise airlines regardless, those who would like to see it constrained and others who would like to see it address the climate change issue.
“We’re not doing this to satisfy the critics, we’re doing this because it’s the right thing to do and we’re doing this because we believe that we can achieve this,” Mr Walsh said.
While the airline sector’s 2050 net-zero goal is challenging, the Iata board passed the resolution by a majority vote.
“It’s not without its challenges; I’m not going to convince anybody that it’s easy. The fact that we didn’t have a unanimous position in relation to supporting it should indicate to people that it’s more challenging,” Mr Walsh said. “It’s the first time ever in the history of Iata that something was adopted without a unanimous vote. From that point of view, it was a change.”
While the Iata board normally operates on consensus, the issue was “too important”, so a vote was taken and a majority decision was adopted.
Some members of the board said the industry could not afford to commit to the goals, while others believed the time frame was too aggressive or not soon enough. Others said SAF would not be available at the scale needed and some members wanted to pursue investment in other technologies.
“If you were to wait for everybody to get in the same place, you’d never get anywhere,” Mr Walsh said.
Middle East airlines were supportive of the decision and are doing a lot of work “behind the scenes” on sustainability, he said.
“There’s no hesitation on the part of the carriers in the Middle East to commit to this, none whatsoever.”
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2003 Beat Mark Philippoussis
2004 Beat Andy Roddick
2005 Beat Andy Roddick
2006 Beat Rafael Nadal
2007 Beat Rafael Nadal
2008 Lost to Rafael Nadal
2009 Beat Andy Roddick
2012 Beat Andy Murray
2014 Lost to Novak Djokovic
2015 Lost to Novak Djokovic
2017 Beat Marin Cilic
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Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
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The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
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August 2025
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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