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Eric Ng

HSBC has signed Hong Kong’s first deal for the direct 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.
All of its output has been exported to Europe since its first plant in Jiangsu province started production in 2021.
Lam Sai-hung, Hong Kong’s Secretary for Transport and Logistics, said the partnership aligns with the government’s policy vision for increasing the use of SAF to help the city maintain its status as a leading international aviation hub.

The government will set a target for SAF use within the next year and devise a plan to develop a fuel supply chain to reduce emissions and meet rising demand from international carriers, Chief Executive John Lee Ka-chiu said in his policy address last month.
In February, Singapore set a target for flights departing from the city-state to use fuel blends that contain at least 1 per cent SAF from 2026, rising to 3 to 5 per cent by 2030. European Union regulations require airports of member countries to supply fuel containing at least 2 per cent SAF next year, rising to 6 per cent by 2030.
Since 2022, Cathay has operated a corporate SAF programme, which some 15 customers – mainly logistics and financial firms – have joined, committing to pay for the additional cost of 2,600 tonnes of SAF use this year.
This can eliminate 8,000 tonnes of carbon-dioxide emissions, more than triple the volume a year ago, said Grace Cheung, Cathay’s general manager of sustainability.
Aviation is difficult to decarbonise because of long innovation cycles, the prioritisation of safe operations and the high costs of key technologies, consultancy McKinsey said last year. SAF is three to five times more expensive than conventional jet fuel, according to industry media outlet AvBuyer.
EcoCeres executive chairman Matti Lievonen said the deal will help HSBC trace its travel supply chain and track its carbon-reduction efforts.
Separately, global oil and gas firm Shell on Tuesday launched a blockchain technology-enabled “book and claim” platform to allow air freighters, forwarders and shippers to pay for and claim carbon-reduction benefits based on their use of SAF.
Unveiled at the Asian Logistics, Maritime and Aviation Conference in Hong Kong, the system promises to provide supply-chain players with verifiable and auditable climate benefits for their use of SAF, based on the amount of financing they contribute, without having to physically own and handle the logistics of the SAF, said Doris Tan, head of Shell Aviation Asia-Pacific and Middle East.


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Business of climate change

HSBC, Cathay Pacific, EcoCeres join forces on Hong Kong sustainable aviation fuel push

A Cathay Pacific Airways  plane takes off from Hong Kong International Airport in Chek Lap Kok. Photo: Yik Yeung-man

(L-R) Ronald Lam Siu-por, CEO of Cathay Group, Luanne Lim, CEO of HSBC Hong Kong, Lam Sai-hung, secretary for transport and logistics, Clara Chan Ka-chai, CEO of Hong Kong Investment Corp, and Matti Lievonen, executive chairman of EcoCeres, at a press conference on November 19, 2024. Photo: Sun Yeung 

Cathay Pacific: sustainable aviation fuel needs Hong Kong government push

A Cathay Pacific plane taxis at Hong Kong International Airport, Chek Lao Kok on October 28, 2024. Photo: Jonathan Wong

Grace Cheung, general manager of sustainability at Cathay Pacific Airways, participates in a panel discussion at the ASIFMA Sustainable Finance Conference 2024 in Wan Chai on October 30, 2024. Photo: May Tse

Hong Kong’s aviation future hinges on sustainable fuel policies, experts say

About 80 per cent of sustainable aviation fuel globally is produced in North America and Europe. Photo:  Shutterstock

98 per cent of Cathay Pacific’s greenhouse gas emissions is attributed to jet fuel use. Photo: May Tse

DB Schenker joins Cathay’s sustainable fuel programme, pledging to cut carbon emissions

DB Schenker sign on transportation service office. DB Schenker is a division of the German rail operator Deutsche Bahn AG that focuses on logistics  Photo: Shutterstock Images

Tom Owens, Director Cargo at Cathay Pacific is pictured at Cathay Pacific City in Chek Lap Kok. Photo: Jonathan Wong

Rivals Cathay Pacific, Singapore Airlines team up to source sustainable aviation fuel

A Cathay Pacific passenger airplane takes off at the Hong Kong International Airport, Chek Lap Kok.  Photo: Yik Yeung-man

Cathay Pacific continues to make progress towards achieving its goal of using Sustainable Aviation Fuel (SAF) for 10% of its total fuel use by 2030 by uplifting SAF onto its commercial flights for the very first time outside its Hong Kong hub. Photo: Cathay Pacific

From hotpot waste to jets: Cathay Pacific joins Hong Kong group in diving into sustainable aviation fuel

Cathay Pacific has already been collaborating with partners on SAF procurement and usage, BEC’s Ng says. Photo: Sam Tsang

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Deal eliminates emissions equal to 10,000 round-trip flights between Hong Kong and London, lender says


Deal eliminates emissions equal to 10,000 round-trip flights between Hong Kong and London, lender says.


HSBC, Cathay Pacific, EcoCeres join forces on Hong Kong sustainable aviation fuel push

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Deal eliminates emissions equal to 10,000 round-trip flights between Hong Kong and London, lender says

Deal eliminates emissions equal to 10,000 round-trip flights between Hong Kong and London, lender says