By South China Morning Post | Created at 2024-11-19 11:21:43 | Updated at 2024-11-19 13:28:42
2 hours ago
HSBC has signed Hong Kong’s first deal for the corporate purchase of sustainable aviation fuel (SAF) to cut its travel-related carbon emissions, ahead of government policies aimed at driving the use of the fuel to help the city meet its climate goals.
In a three-party agreement announced on Tuesday, the city’s largest bank agreed to a one-time deal to buy 3,400 tonnes of SAF from EcoCeres, a biofuel maker spun off in 2021 from the city’s dominant piped gas supplier, Hong Kong and China Gas (Towngas).
The fuel will be used in flights operated by flagship carrier Cathay Pacific that depart from Hong Kong International Airport.
“This is the largest SAF purchase HSBC has ever done,” said Luanne Lim, CEO of the global bank’s Hong Kong operation. “The Hong Kong initiative will serve as a pilot programme, which could help pave the way for broader implementation.”
The deal will eliminate around 11,800 tonnes of carbon emissions, equivalent to the carbon footprint of 10,000 round-trip, economy-class flights between Hong Kong and London, she added.
Cathay accounts for around 80 per cent of the bank’s air travel in Hong Kong, said Alice Suen, head of the lender’s sustainable finance operations.
Derived solely from waste biomass, primarily used cooking oil, EcoCeres’ SAF can reduce greenhouse-gas emissions by up to 90 per cent compared with conventional jet fuel, the company said, citing certification by Germany-based International Sustainability and Carbon Certification.
