In this episode, Sustainability Leader and Partner Holly Hill sits down with Matt Connolly, Air New Zealand's Sustainability Lead for Energy Transition, to explore the airline's leading initiatives including its Sustainable Aviation Fuel (SAF) trial, climate-related transition plan, next generation aircrafts, and fuel optimisation.
[01:14] Holly and Matt discuss that aviation is inherently unsustainable because it relies on burning fossil fuels, making it a major source of greenhouse gas emissions.
[02:19] Holly and Matt explore Air New Zealand’s current use of SAF, noting its scarcity and high cost. He explains that collaboration with corporates is critical to scaling SAF globally and that the pilot program in New Zealand is designed to foster these partnerships.
[02:49] Matt describes how SAF is chemically similar to jet fuel and can be used in existing aircraft without modification. He explains that emissions reductions come from SAF’s lifecycle, as it is produced from biogenic and waste sources rather than fossil fuels. He also outlines how emissions benefits are shared between airlines and corporate partners through scope 1 and scope 3 reductions.
[04:48] Matt shares that corporate partners purchase emissions reductions to match portions of their travel. He notes that Air New Zealand used 1.7% SAF in its fuel mix last financial year, which equates to approximately 50,000 tonnes of avoided emissions compared to fossil jet fuel.
[06:18] They explore Air New Zealand’s short-term target of 10% SAF in its fuel mix by 2030 and a long-term goal of achieving net zero by 2050. Matt explains that global aviation bodies expect SAF to make up two-thirds to 100% of jet fuel by mid-century.
[06:48] Matt says the SAF pilot has generated interest among corporates, but emphasises that scaling SAF requires broad collaboration. Air New Zealand is working with sustainability groups and auditors to build trust and create a robust system for corporate participation.
[07:48] Holly and Matt outline the economic challenges of scaling SAF, including its current cost premium and the need for large-scale, capital-intensive projects. He explains that moving SAF down the technology cost curve is essential for affordability.
[08:48] They discuss Air New Zealand’s ongoing conversations with the New Zealand government about SAF and notes that governments worldwide are approaching the challenge in different ways. He emphasises the importance of finding a solution that works for New Zealand.
[09:18] Matt explains that partnerships are key to SAF success globally. He notes that airlines making progress on SAF are those working closely with corporate partners to build commercially sustainable approaches.
[10:18] Matt summarises that aviation is difficult to decarbonise, but SAF is a viable solution today. He stresses that partnerships are essential for scaling SAF and reiterates Air New Zealand’s commitment to net zero by 2050
[11:47] They round out the episode by sharing Air New Zealand’s research into electric and hydrogen-powered aircraft, including a technical demonstrator project with Beta Technologies. He explains that while these technologies may not play a major role before 2050, they represent a long-term opportunity to move away from fossil fuels entirely.
Information in this episode is accurate as at the date of recording, 24 November 2025.
Please contact Holly Hill or our Sustainability team if you need legal advice or guidance on any of the topics discussed in the episode.
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