The International Air Transport Association (IATA) has unveiled its “Net Zero CO2 Emissions Roadmap,” outlining critical steps and policy measures aimed at achieving net zero carbon emissions in the aviation sector by 2050. The roadmap, released as part of IATA’s ongoing commitment to sustainability, emphasizes the urgent need for coordinated global action to address climate change and transform the air transport industry.

The report highlights that without immediate intervention, the airline industry faces significant challenges in meeting its emissions reduction targets. It sets forth a detailed framework that includes immediate, mid-term, and long-term policy objectives designed to facilitate the transition to sustainable aviation fuels (SAF) and innovative propulsion technologies.

The roadmap identifies several immediate policy objectives that must be addressed by the end of 2025. Key actions include unlocking Eligible Emissions Units under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), prioritizing SAF production in existing refineries, and attracting investment for new propulsion technologies. Additionally, establishing robust standards for environmental integrity and building a comprehensive SAF accounting framework are deemed essential for ensuring transparency and trust in emissions reductions.

Looking ahead to 2026-2030, the roadmap emphasizes the need to eliminate barriers to SAF distribution and promote diversification in cleaner aviation energies. It calls for enhanced research and development in carbon dioxide removal technologies to support the industry’s decarbonization efforts.

From 2031 to 2050, the focus will shift towards sustaining innovation in SAF and new propulsion technologies. The roadmap stresses the importance of conducting periodic policy reviews to ensure alignment with technological advancements and environmental goals. It also advocates for continuous innovation in non-biological SAF and the adoption of new propulsion technologies.

IATA’s report underscores that effective policymaking is crucial not only for achieving environmental goals but also for driving economic growth within the aviation sector. The transition to net zero emissions is projected to incur significant costs, with total annual transition costs expected to rise from $0.12 billion in 2023 to $744 billion by 2050. However, with strategic policy interventions, these costs can be mitigated.

Bill Gates, co-chair of the Bill & Melinda Gates Foundation, recently highlighted that addressing malnutrition is critical for global health, paralleling IATA’s call for robust policies that can lead to sustainable aviation practices. Both sectors emphasize the need for immediate action and investment to secure a healthier future.

The IATA’s “Net Zero CO2 Emissions Roadmap” presents a comprehensive strategy for transforming the aviation industry into a sustainable sector capable of meeting global climate goals. By prioritizing collaboration among governments, airlines, and stakeholders, IATA aims to pave the way for a greener future in air transportation while fostering economic resilience across the industry. The success of this initiative will depend on bold policy actions and a commitment to innovation as the world moves towards a more sustainable aviation landscape.

Goh Betoch, Ethiopia’s first privately owned mortgage bank, has announced that its profits have increased due to the recent floating of the foreign exchange market. Within a few weeks of the National Bank of Ethiopia’s (NBE) change in foreign exchange management, the premium between the parallel market and the banks’ foreign exchange market has decreased rapidly.

According to NBE, the rate difference between the two markets, which was 100% before the change, dropped to just 4% between July 29 and September 4, 2024. The narrowing of the gap not only boosted foreign exchange earnings for banks like Goh Betoch, but also increased the likelihood that money going into the parallel market would be injected into the legal system.

Goh Betoch provides home loans to two main groups: Ethiopians who have saved 30% in birr and 60% in various packages, and the diaspora. Million Masresha, an International Banking Business Manager at Goh Betoch, explained that before the floating, the diaspora would often send money through proxies to bypass the system and apply for home loans. However, now the diaspora is taking advantage of the reforms by opening foreign currency accounts for home loans, making the process more transparent.

“Previously, the diaspora thought it would be better to pay in birr instead of sending money directly to the black market, because the gap in the parallel market was double,” Million said. He emphasized the significance of the unite.et application recently introduced by NBE, which allows Ethiopians abroad to send remittances digitally and open accounts anywhere.

NBE has developed these digital methods and banking solutions to enable millions of Ethiopians living abroad to spend their foreign currency wealth for the growth and prosperity of the country. To further attract foreign currency remittances, NBE launched a high-value online application called unite.et specifically for remittance senders.

The reforms implemented by NBE have had a positive impact on Goh Betoch’s operations and profitability. By narrowing the gap between the official and parallel foreign exchange markets, the bank is able to generate more revenue from home loans to both domestic and diaspora customers. This, in turn, contributes to the overall growth and development of Ethiopia’s housing sector.

The private sector, which includes companies in the industrial sector, is pleased with the banking institutions’ improved foreign exchange allocation.

According to sources, private sector players report that their requests for foreign currency are being met with favorable and somewhat quick responses from banks, in contrast to their prior experience.

“Over the past few weeks, our letter of credit (LC) has been receiving positive results,” they stated.

Manufacturing investors, who have been grumbling for years about their companies’ terrible hard currency allocation, now report that things have improved in the last few weeks.

They conveyed their optimism that the foreign exchange allotment will increase in the upcoming time frame.

Important adjustments to the foreign exchange directive have been made by the government in connection with the macroeconomic reform that went into effect on July 29.

The market has considerably reduced the difference in exchange rates between the legal and black markets, setting the direction of the foreign exchange market, according to the ruling.

The National Bank of Ethiopia (NBE) has dramatically altered the administration and distribution of foreign currency, enabling banks to generate and distribute foreign currency freely through a new directive that updated numerous earlier rules and included some new legislation.

The money transfer that was greatly impacted and captive to the parallel market and money laundering has also been made possible by the currency market reform and is now being routed through the legal system, according to banking sector observers.

Financial sector experts noted that the banking system has seen an exceptional increase in remittances over the last several weeks.

They told Capital that the amount of foreign cash received through remittances via the legal system during the last three weeks, which coincide with Ethiopia’s New Year and Meskal holiday season, is noteworthy.

A few weeks ago, NBE launched a six-month campaign to increase money transfers in partnership with financial institutions.

“The foreign currency flow through banks is growing since the foreign exchange has become equal to the illegal market, and financial institutions are offering various attractive incentives to boost their hard currency resources,” an IBD director told Capital.

He continued by saying that some of the incentives are better than the black market pricing, which, according to the most recent NBE review, differs somewhat from the legal rate.

“It may take two weeks, but our foreign currency requests are getting positive responses from banks,” said participants in the private sector.

“We hope that it will expand more in terms of amount and shorter time frames,” they said, expressing their appreciation for the new trend.

According to the government, the new reform is primarily intended to modernize the macroeconomic structure and increase foreign currency availability, which was one of Ethiopia’s biggest economic concerns.