The Qantas Airways Limited (ASX: QAN) share price is in the red in early trading today after the airline outlined its plan to reach net-zero emissions by 2050, which includes new interim targets.
Additionally, Qantas has unveiled a partnership with Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Inpex to explore a Western Australian carbon farming and biofuels project.
At the time of writing, the Qantas share price is down 0.86% at $5.215.
Let's take a closer look at the news released by the iconic airline today.
Image source: Getty Images
Qantas share price in focus on new emissions pledge
The Qantas share price is falling following the release of the airline's Climate Action Plan this morning.
The national carrier has also announced an interim target that will see it cut its carbon emissions by 25% by 2030 (based on 2019 levels).
"Having a clear plan to decarbonise Qantas and Jetstar so we can keep delivering these services in the decades ahead is absolutely key to our future," said Qantas CEO Alan Joyce.
The flying kangaroo's approach to net zero relies on sustainable aviation fuel (SAF), waste reduction, fuel efficiencies, and offsets to hit carbon neutrality over the coming 28 years.
In fact, it's aiming to increase its use of SAF by 10% by 2030 and approximately 60% by 2050.
It has also pledged $50 million to help create an Australian SAF industry, calling on governments to add their own support. The company notes Australia already produces much of the fuel's feedstock.
Qantas is also aiming to improve its fuel efficiencies by an average of 1.5% each year until 2030. It will engage in fleet modernisations and flight planning to do so.
The airline will continue researching what it calls "next-generation technologies" such as battery and hydrogen power.
Finally, Qantas has committed to ditching single-use plastics by 2027 and cutting ties with landfill by 2030.
"We've had a zero net emissions goal for several years, so today's interim targets are about accelerating our progress and cutting emissions as quickly as technology allows," commented Joyce.
"One benefit of setting these targets now is sending a clear signal that we're in the market for large volumes of sustainable aviation fuel, for carbon offset projects, and for products that can be recycled. That will hopefully encourage more investment and build more momentum for the industry as a whole."
Qantas enters Australian biofuel partnership
Also potentially affecting the Qantas share price today is news of an agreement to investigate an Australian biofuels hub.
The airline announced it has entered a new memorandum of understanding with ANZ and Inpex.
The agreement will create a feasibility study into producing low-carbon renewable biofuels in Western Australia's wheat belt.
According to the airline, it could support reforestation and decarbonisation by planting drought-resilient native tree crops, integrating them with farming systems.
The entities have already assessed the potential of a carbon farming project.
Now, they will investigate harvesting and processing native biomass crops and selected agricultural waste residues to produce biofuels.
If all goes to plan, native trees will begin to be planted in 2023.
Qantas share price snapshot
The Qantas share price has been outperforming the broader market in 2022 so far.
Right now, it is 2% higher than it was at the start of the year. In that time frame, the S&P/ASX 200 Index (ASX: XJO) has slipped nearly 1%.
Though, the airline's stock has only grown 3% over the last 12 months. For comparison, the ASX 200 is sporting a 10% gain.
