How is Air Canada using Sustainable Aviation Fuel to hit its 2050 net-zero goal?

ByUjjwal Sukhwani•January 19, 2026 at 06:40 AM•3 min read

ENVIRONMENTAL How is Air Canada using Sustainable Aviation Fuel to hit its 2050 net-zero goal?

Air Canada confirmed a major purchase of 77.6 million liters of Sustainable Aviation Fuel (SAF) from Neste to meet its 2025 targets and advance its net-zero GHG emissions 2050 goal.

Key Points

1Air Canada committed to a $50 million investment fund for Sustainable Aviation Fuel (SAF) and carbon reduction technologies.
2The airline secured 77.6 million liters (20.5 million US gallons) of Neste MY Sustainable Aviation Fuel to meet its 1% SAF procurement target for 2025.
3SAF is a critical component of the airline's plan to achieve net-zero GHG emissions by 2050, alongside 2030 interim reduction targets.
4A key challenge remains the limited global supply and high cost of SAF, prompting Air Canada to advocate for domestic Canadian production.

Air Canada has made a significant commitment to reducing its environmental impact. The airline is focusing heavily on Sustainable Aviation Fuel (SAF). This is a critical part of its long-term climate action plan.

Air Canada has an ambitious goal. It aims to achieve net-zero GHG emissions across its global operations by 2050. The use of SAF is a core pillar in this strategy.

Key Investment and Procurement

To meet its near-term goals, Air Canada recently signed a major procurement agreement. The airline will purchase 77.6 million liters (20.5 million US gallons) of Neste MY Sustainable Aviation Fuel. This fuel is supplied by Finland-based producer Neste.

This large purchase contributes significantly to a key interim target. Air Canada aims to procure SAF for one percent of its estimated jet fuel use in 2025. The fuel will be supplied to the Vancouver marine terminal. This marks Air Canada's first commercial import of SAF into Canada.

In a broader context, Air Canada previously pledged a $50 million investment. This funding supports SAF and other low-carbon aviation fuel development. This investment is part of its commitment to advancing climate change sustainability.

Decarbonization Strategy and Targets

The Sustainable Aviation Fuel is produced from 100% renewable waste and residue raw materials. These materials include used cooking oil and animal fat waste. When used in its unblended form, Neste's SAF can reduce lifecycle greenhouse gas (GHG) emissions by up to 80% compared to traditional fossil jet fuel.

Air Canada's climate plan includes absolute midterm GHG net reduction targets by 2030. These targets use a 2019 baseline.

20% GHG net reductions from air operations.
30% GHG net reductions from ground operations.

Beyond SAF, the airline's strategy involves other key pillars:

Fleet Renewal: Deploying more fuel-efficient aircraft, such as the Airbus A220 and Boeing 737 MAX.
Ground Operations: Phasing out carbon-intensive ground equipment and advancing electric vehicle use.
Innovation: Exploring new technologies like carbon negative emission technologies.

Industry Impact and Challenges

This significant SAF procurement highlights a major challenge. The current global supply of SAF remains extremely limited and costly. Air Canada's CEO has stressed the need for domestic sources. The airline is actively working with Canadian governments. The goal is to support a cost-competitive, Canadian-made supply of low-carbon aviation fuel.

Developing a strong domestic SAF industry is crucial. It supports Canada's environmental goals. It also drives economic growth and job creation within the Canadian aviation industry. The airline's efforts demonstrate a commitment to long-term sustainable emission reduction solutions. This action helps advance de-carbonization in the global airline industry. Aviation bodies like IATA recognize SAF as a key lever for the industry's net-zero goal.

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