Emirates announces €180 million fund to decarbonise flying

Emirates is creating a $200 million (€183m) fund to decarbonise the aviation sector.

The UAE’s flag carrier airline made the announcement on Thursday ahead of releasing its annual report.

The money will fund research and development projects aimed at reducing the use of fossil fuels in commercial aviation.

The airline, owned by Dubai’s government, said the funding would be distributed over three years.

The fund aims to help the industry hit net zero targets

“It’s clear that with the current pathways available to airlines in terms of emissions reduction, our industry won’t be able to hit net zero targets in the prescribed timeline,” airline President Tim Clark said in a statement. 

“We believe our industry needs better solutions, and that’s why we’re looking to partner with leading organisations.”

Emirates separately will aim to use so-called sustainable aviation fuel as well when possible – though it remains incredibly scarce in the market. 

In January, the airline successfully flew a Boeing 777 on a test flight with one of its two engines entirely powered by the fuel.

The announcement also comes ahead of Dubai hosting the COP28 climate talks in November.

Emirates saw record profits in 2022

The long-haul carrier also announced a profit of $2.9 billion (€2.65b) on Thursday, cementing last year as its most profitable ever.

The airline offered the figures in its annual report, which said the carrier had revenue of $29.3 billion (€26.8b).

The 2022 profit comes after the company posted a $1.1 billion (€1b) loss in 2021, when the pandemic shut down global aviation. The airline said revenue was up year-on-year by 81 per cent.

“We had anticipated the strong return of travel,” Sheikh Ahmed bin Saeed Al Maktoum, the chairman and chief executive of Emirates, said in a statement. “And as the last travel restrictions lifted and triggered a tide of demand, we were ready to expand our operations quickly and safely to serve our customers.”