Meeting the net zero carbon emissions target by 2050 is a “massive challenge” for the aviation industry but it offers a huge opportunity for the sustainable aviation fuel (SAF) sector, which is already being propelled by the Covid-19 pandemic, industry experts said.
Investments in the SAF industry and work towards achieving global climate commitments have accelerated in the past few months, as the aviation industry is working hard for a green recovery, said Nancy Young, vice president of environmental affairs at the trade body Airlines for America, in Washington.
“It is remarkable to see that we continued working on the climate crisis even in the middle of the pandemic,” said Ms Young, who was speaking at a How Airlines and Fuel Producers are trying to Fly Carbon-Free session organised by the Energy Intelligence Forum.
“We have seen a lot efforts made by our members to push the SAF industry … things are moving in terms of our expectation as we are working hard for a green recovery,” she said.
The aviation sector came to a grinding halt as a result of the Covid-19 pandemic, but demand is beginning to recover because of the increased pace of vaccine distribution in many countries.
On Monday, global airlines adopted a resolution to reach net-zero carbon emissions by 2050 as they come under increasing pressure from climate change activists over the effects of their operations.
The International Air Transport Association has set out a strategy to achieve this target through the use of SAF, new aircraft technology, more efficient operations and infrastructure and developing energy sources such as electric and hydrogen power.
“The pandemic created many opportunities for the companies to take a step back and think about the future … it created a point where both companies and countries are now thinking of ways to come back strongly from the pandemic and accelerate the green efforts,” said Jimmy Samartzis, chief executive of Chicago-based sustainable fuels technology company Lanzajet.
“The pandemic was a moment when most of the companies set new climate goals … it [boosted] interest in the future and accelerated the efforts towards the commercialisation of SAFs,” he said.
Under Iata's plan, the use of SAF would contribute 65 per cent towards achieving net-zero carbon by 2050, new aircraft technologies (such as electric or hydrogen propulsion) would contribute 13 per cent, off-setting or carbon capture 19 per cent and improving infrastructure and operations (particularly air traffic management) would contribute 3 per cent.
Despite the Covid-19 pandemic, the “airlines did not stop their efforts towards achieving sustainability goals”, said Thorsten Lange, executive vice president for renewable aviation at Neste – an oil refining and marketing company in Espoo, Finland.
“Public awareness on sustainability has grown substantially and now we are seeing growing climate commitments in the aviation industry around the world.”
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
What are the main cyber security threats?
Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.
