In a significant move that underscores the growing realisation of the impracticality and economic strain of net zero policies, Air New Zealand has abandoned its ambitious 2030 carbon emission reduction targets.
The airline's decision reflects a broader trend among companies facing the harsh realities of such goals, which were always more pie in the sky than practical policy.
Air New Zealand's CEO, Greg Foran, cited delays in fleet renewal and the high costs and limited availability of so-called Sustainable Aviation Fuels (SAF) as major obstacles to achieving their 2030 targets.
The airline had initially aimed to cut its emissions by almost 29% compared to 2019 levels, a goal much more ambitious than the global aviation industry's 5% reduction target for the same period.
However, the challenges in securing efficient planes and sustainable fuels have proven insurmountable.
The aviation industry, responsible for about 2% of global carbon dioxide emissions, has been under pressure to reduce its carbon footprint.
However, the reality is that the infrastructure and technology required to meet these targets are not advancing quickly enough.
Boeing and Airbus have faced significant delays in delivering new jets due to supply chain issues, and SAF remains prohibitively expensive and scarce.
Air New Zealand is not alone in reassessing its climate targets.
A recent survey by Schneider Electric revealed that almost 30% of Australian companies have no intention of meeting net zero emissions by 2050.
Additionally, over 40% have yet to begin decarbonising their operations.
This trend is particularly pronounced among smaller companies, which often lack the resources to invest in sustainable technologies and strategies.
Telstra recently withdrew from the federal government's Climate Active carbon-neutral labelling programme, shifting its focus to more direct actions to cut emissions rather than relying on offsets. This move, like Air New Zealand's, signals a broader disillusionment with the feasibility of these targets.
Despite the mounting evidence of the impracticality of net zero goals, Australian state governments remain committed to their ambitious emission reduction targets.
NSW aims for a 50% reduction by 2030 and a 70% reduction by 2035.
Victoria is targeting a 75-80% reduction by 2035, with a 2045 net zero goal. Queensland is targeting a 75% cut by 2035, South Australia aims for a 50% reduction by 2030, and Tasmania targets net zero by 2030.
Western Australia, meanwhile, does not have a 2030 target at all.
What's more concerning is that both sides of the political spectrum in Australia, including the Liberals, support these state targets.
This bipartisan commitment to net zero goals, despite their clear impracticality and economic damage, highlights a concerning disconnect from the realities faced by businesses and the broader economy.
Net zero policies have proven to be economically burdensome and have caused the price of electricity to sky-rocket, putting enormous pressure on families.
The high costs associated with transitioning to so-called renewable energy, coupled with the logistical challenges, make these targets increasingly unrealistic.
Family First insists energy policy should focus on reliability and affordability and has been warning for years that net zero policies are damaging the electricity grid and forcing prices higher.