Cathay launches sustainable fuels programme to achieve carbon reduction despite higher costs

Sustainable aviation fuels are three to five times more expensive than traditional fuels, said Cathay Pacific Airways (0293).

Therefore, the company said it has launched the Sustainable Aviation Fuels Programme, which enables clients to collaborate with Cathay within the supply chain by paying a premium to achieve carbon reduction.

As SAF was produced from feedstocks such as used cooking oil, which can be used directly in aircraft and engines, the firm believed that it could help reduce carbon emissions per flight by up to 80 percent.

Meanwhile, Hong Kong Exchanges and Clearing (0388) is building a sustainable finance ecosystem to support market participants in their transition, said chief executive Bonnie Chan Yi-ting.

HKEX is expected to provide products including ESG-traded funds and sustainable bonds, Chan said.

It also published Carbon Credits: A Buyer’s Guide, which can help companies make more informed decisions when selecting carbon credits that align with their corporate values and sustainability objectives.

In addition, HSBC (0005) said it would consider more developments of infrastructure, energy storage, and power grid, as renewable energy financing became mainstream.

With strong power demand in Asia, such as high power consumption of data centers in Southeast Asia, it's necessary to speed up the relative construction, said Surendra Rosha, co-chief executive of Asia and the Middle East.

HELEN ZHONG