Just transition, environmental & social considerations for the aviation fuel transition: An investor guide

Introduction

The SASHA Coalition together with the Climate Catalyst have released a guide to help investors ensure alternative aviation fuel projects on their portfolios do not have negative implications that may increase investment risk in three categories:

1. Environmental — increased emissions and biodiversity damage from biofuel production processes and indirect land us change (ILUC).

2. Just transition — adverse impacts to communities without deep community engagement and re-skilling for workers.

3. Social — human rights abuses across supply chains and production creating water, food or energy insecurity.

With the most sustainable alternative aviation fuels, produced with green hydrogen, in need of investment to scale at pace, ensuring finances are invested in the most sustainable projects is crucial.

What’s in the guide?

The report outlines the negative impacts different biofuel and e-kerosene projects could have. It provides investors with questions to ask companies in their portfolios to minimise risk and ensure stable returns, also found in the engagement questions document.