Air Canada and Airbus have announced a joint initiative to accelerate the development of a commercial-scale Sustainable Aviation Fuel (SAF) industry in Canada through a newly proposed Sustainability Co-Investment Platform. The two companies intend to jointly invest up to approximately CAD 13.7 million, equivalent to around US$10 million, to help advance domestic SAF production and support aviation’s long-term transition toward lower-carbon operations.
The announcement brings together Air Canada, the country’s largest airline, and Airbus, one of the world’s leading aerospace manufacturers with a strong industrial presence in Canada. Through the proposed investment platform, both organisations aim to support a Canadian SAF project toward a Final Investment Decision while continuing discussions with government partners on policies needed to encourage large-scale production of renewable aviation fuel.
A key objective of the initiative is to strengthen Canada’s domestic SAF ecosystem by encouraging investment, improving supply availability and helping make renewable aviation fuel more competitive for the aviation sector. Air Canada and Airbus are also continuing their advocacy alongside the Canadian Sustainable Aviation Fuel Coalition to promote supportive federal and provincial policy frameworks that can accelerate industry growth while maintaining affordable air travel.
Valerie Durand, Vice President of Airport Affairs, Corporate Real Estate and Sustainability at Air Canada, said the collaboration represents an important step in advancing the airline industry’s energy transition while supporting Canadian innovation and helping corporate customers address emissions linked to business travel.
Julie Kitcher, Chief Sustainability Officer and Communications at Airbus, said aviation decarbonisation will require long-term industry cooperation and significant investment in renewable energy sources. She noted that the co-investment platform and Airbus’ participation in Air Canada’s Leave Less Travel Programme are expected to help stimulate both demand for and production of SAF in Canada.
As part of the corporate travel partnership, Airbus has signed a five-year agreement under Air Canada’s Leave Less Travel Programme. Through the programme, Airbus will purchase verified SAF environmental attributes associated with more than 60,000 litres of SAF for its first allocation. Air Canada will track greenhouse gas emissions linked to Airbus employee business travel and retire the corresponding verified environmental attributes on the company’s behalf, supporting lower life-cycle emissions associated with corporate travel.
The initiative complements Air Canada’s ongoing fleet modernisation programme, which includes more fuel-efficient aircraft such as the Airbus A220 and the Airbus A321XLR. Both companies continue to support the aviation industry’s ambition of achieving net-zero carbon emissions by 2050, with Sustainable Aviation Fuel expected to play a central role in that transition.
A recent economic study conducted by Airbus and ICF highlighted the wider potential of domestic SAF production in Canada. According to the study, producing enough SAF to meet 40% of Canada’s aviation fuel demand by 2040 could contribute approximately CAD 32 billion to the country’s GDP and support nearly 140,000 jobs across agriculture, forestry and urban industries. The proposed investment platform is intended to act as an early catalyst for unlocking these long-term economic and environmental opportunities.
Sustainable Aviation Fuel is produced from renewable feedstocks and other non-fossil resources. Although chemically similar to conventional jet fuel, SAF offers the potential to reduce greenhouse gas emissions across its full life cycle, making it one of the most important technologies supporting the future sustainability of commercial aviation.
