Air Canada and Airbus Launch Canadian SAF Investment Platform to Cut Aviation Emissions
Air Canada and Airbus have announced a joint initiative to accelerate the development of a commercial-scale sustainable aviation fuel (SAF) industry in Canada, supporting aviation decarbonisation and helping reduce the life-cycle emissions associated with corporate travel.
The two aviation companies intend to establish a jointly funded Sustainability Co-Investment Platform, with a shared commitment to invest up to approximately CAD 13.7 million (US$10 million) to support the growth of domestic SAF production.
The initiative aims to advance a Canadian SAF project towards Final Investment Decision (FID) while helping create the policy and investment conditions needed to scale renewable aviation fuels across the country.
Air Canada and Airbus said continued collaboration with federal and provincial governments will be essential to developing a competitive SAF market in Canada. Both companies are working alongside the Canadian Sustainable Aviation Fuel Coalition (C-SAF) to promote policies that support domestic production, affordability and long-term industry growth.
The partnership also includes a corporate travel emissions initiative through Air Canada’s Leave Less Travel Programme. Airbus has committed to a five-year agreement under which it will purchase SAF environmental attributes linked to more than 60,000 litres of SAF for its initial allocation.
Through the programme, Air Canada will track Airbus employees’ business travel emissions and retire verified SAF environmental attributes on the company’s behalf. The initiative is designed to support demand for SAF while helping corporate customers address the life-cycle emissions associated with business travel.
Air Canada said SAF will complement its wider fleet modernisation strategy, which includes more fuel-efficient aircraft such as the Airbus A321XLR and the Canada-built Airbus A220. Both companies support the aviation sector’s ambition to achieve net zero carbon emissions by 2050, with SAF expected to play a central role in reaching that goal.
The development of a domestic SAF industry could also provide significant economic benefits for Canada. A new macroeconomic study by Airbus and ICF found that scaling SAF production to meet 40% of Canada’s aviation fuel demand by 2040 could contribute CAD 32 billion to national GDP and create approximately 140,000 jobs across agriculture, forestry and urban sectors.
The Air Canada and Airbus initiative is intended to provide an early catalyst for investment in Canada’s SAF ecosystem, helping build renewable fuel supply chains while supporting the aviation industry’s transition towards lower-carbon operations.
