• Etihad Airways has joined up with World Energy to operate its first net-zero emissions flight powered entirely by Sustainable Aviation Fuel (SAF). All photos: Etihad Airways
    Etihad Airways has joined up with World Energy to operate its first net-zero emissions flight powered entirely by Sustainable Aviation Fuel (SAF). All photos: Etihad Airways
  • 'This initiative is about proving net-zero commercial aviation is possible,' said Mariam Alqubaisi, head of Sustainability and Business Excellence at Etihad Airways.
    'This initiative is about proving net-zero commercial aviation is possible,' said Mariam Alqubaisi, head of Sustainability and Business Excellence at Etihad Airways.
  • The airline's net-zero flight will be operated on its Boeing 787 'Greenliner'.
    The airline's net-zero flight will be operated on its Boeing 787 'Greenliner'.
  • Since 2019, when the Greenliner programme began, Etihad and Boeing have operated several flights aboard the 787 Dreamliner jet.
    Since 2019, when the Greenliner programme began, Etihad and Boeing have operated several flights aboard the 787 Dreamliner jet.

Etihad Airways to operate net-zero emissions flight to Egypt's Cop27


Deena Kamel
  • English
  • Arabic

Etihad Airways is set to operate a net-zero emissions flight from Washington Dulles Airport to Abu Dhabi via Sharm El Sheikh that will carry delegates to Egypt's Cop27 climate change conference as part of the airline's push for sustainable travel.

The Abu Dhabi-based airline is joining up with net-zero services provider World Energy to operate the flight powered entirely by sustainable aviation fuel (SAF) through a book-and-claim system, Etihad Airways said in a statement on Thursday.

This means Etihad will buy — or book — SAF for the flight provided by fuelling partner World Energy. The flight will use conventional Jet-A1 fuel, while the physical SAF that Etihad has purchased will be delivered to the Los Angeles International Airport (LAX) fuel system to be used on flights by other airlines, as LAX has the infrastructure to take delivery of and distribute World Energy’s SAF.

Etihad Airways said this will be the first net-zero flight powered entirely by the SAF book and claim system, showing a “feasible path” to net-zero commercial aviation using current technology while underscoring the challenges and opportunities of using SAF.

“This initiative is about proving net-zero commercial aviation is possible, but equally facing up to the significant logistical challenges the industry faces to turn the possible into the routine,” said Mariam Alqubaisi, head of Sustainability and Business Excellence at Etihad Airways.

Etihad Airways has already committed to a target of net-zero carbon emissions by 2050 and halving its 2019 net emission levels by 2035. The UAE has also pledged to reduce its carbon emissions to net zero by the year 2050, earmarking Dh600 billion ($163.37bn) for investments in clean and renewable energy sources over the next three decades.

The airline's net-zero flight will be operated on its Boeing 787 “Greenliner”.'

The sustainable features of Etihad's Greenliner. Etihad
The sustainable features of Etihad's Greenliner. Etihad

Since 2019, when the Greenliner programme began, Etihad and Boeing have operated several flights aboard the 787 Dreamliner jet, focusing on plastic-free in-flight products, optimised airspace management, flight deck tools for more eco-friendly take-offs, noise reduction and the use of sustainable aviation fuel.

Etihad Airways is also using its new A350 passenger jet as part of the programme aimed at decarbonising aviation.

“Through these programmes, we have run a series of ecoFlights over the past two years to test and validate several concepts, and we have made refining and implementing sustainability initiatives an intrinsic part of our day-to-day operation,” Ms Alqubaisi said.

The net-zero flight is “the next logical step” after Etihad's flight EY20 from London Heathrow to Abu Dhabi in October last year succeeded in reducing emissions by 72 per cent compared to the same flight in 2019, she said.

“This isn’t about solving only Etihad’s emissions, but about supporting the entire industry to address the biggest challenge we face over the next three decades,” she added.

Last year, airlines pledged net-zero carbon emissions from their operations by 2050, bringing the air transport industry in line with the objectives of the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels. Airlines are facing pressure from environmental groups to lower their carbon footprint and make operations greener after the Covid-19 pandemic.

“Aviation is on an unsustainable trajectory, as it is projected to continue to account for an ever-greater share of global carbon emissions,” said Gene Gebolys, chief executive of World Energy.

“But there is a way off this course. The course correction will come from the fuel tank rather than the cockpit. Together, we can efficiently change the fuel we fly on so we can change the impact of flying.”

Guests on board Etihad's net-zero flight to Cop27 will not be charged any premium for their fare but preparing a net-zero flight without charging a surcharge for each passenger and cargo shipment is a challenge, given that the cost to produce SAF is four times higher than traditional jet fuel, Etihad said.

The extra costs will be mitigated by several sources, including government subsidies reducing the SAF cost by 50 per cent, Etihad's Corporate Conscious Choice programme contributing 28 per cent and the Etihad Guest Raffle providing 22 per cent, it said.

A final 10 per cent to partially offset additional operational and handling costs will be generated by tokenising and trading CO2 avoidance credits, Etihad said.

Watch: Etihad to offer Armani/Casa products in business class

UAE currency: the story behind the money in your pockets

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.”

The Laughing Apple

Yusuf/Cat Stevens

(Verve Decca Crossover)

TRAP

Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue

Director: M Night Shyamalan

Rating: 3/5

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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

The years Ramadan fell in May

1987

1954

1921

1888

It Was Just an Accident

Director: Jafar Panahi

Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr

Rating: 4/5

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WISH
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Updated: October 27, 2022, 5:08 AM