{ "docId": "019dd923-5de0-76bd-a169-0df03e051770", "docSlug": "60710839fd76036e", "documentTitle": "Transport & Logistics Barometer", "authorId": "PwC", "authorName": "PwC", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "strategy_consulting", "sourceTypeLabel": "Strategy consulting", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.778, "pageNumber": 26, "pageCount": 39, "prevPage": 25, "nextPage": 27, "slideType": "industry_trends", "function": "establish_context", "density": "overcrowded", "nDataPoints": 2, "notes": "The slide discusses the importance of SAF as a primary lever for reducing GHG emissions in aviation, citing a need for 1,000 billion EUR in CapEx.", "elementsJson": [ "headline_text", "paragraph", "photo" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-5de0-76bd-a169-0df03e051770/26", "deckHref": "/decks/019dd923-5de0-76bd-a169-0df03e051770", "deckJsonHref": "/decks/019dd923-5de0-76bd-a169-0df03e051770.json", "deckAnchorHref": "/decks/019dd923-5de0-76bd-a169-0df03e051770#slide-26", "components": [ { "bbox": null, "kind": "callout", "text": "SAF is expected to contribute more than 50% to the net-zero ambition of the aviation industry.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-3be6-7628-b9c4-45d0e87b7233", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 1, "w": 0.49, "x": 0.51, "y": 0 }, "kind": "image", "text": null, "attrs": null, "subkind": "photo", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "06e49ac4-7cd5-44f6-91c6-6982e33f21c5", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "CapEx: 1,000 billion EUR", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-3be6-7628-b9c4-4837f7a1a06b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.38, "w": 0.45, "x": 0.036, "y": 0.175 }, "kind": "paragraph", "text": "While there are alternative propulsion technologies to reduce emissions in airfreight and partnerships driving these new technologies (e.g., ADP Group preparing for aircraft hydrogen era, Korean Air and Incheon International Airport for hydrogen infrastructure), they will only come into effect in the mid- to long-term. Other ways to reduce emissions include e.g. fleet renewal with more energy-efficient aircrafts. However, the current focus is on sustainable aviation fuels (SAF) as the key option for reducing airfreight GHG emissions of existing fleets. SAF is expected to contribute more than 50% to the net-zero ambition of the aviation industry and we have investigated potential cost impacts, relevance and different technologies in a separate study (refer to Strategy&'s SAF Study on ramp-up scenarios and cost implications). The high significance of SAF manifests itself in dedicated programs by carriers and their collaboration with forwarders. Etihad Cargo's partnership with DSV, Bolloré Logistics and United Airlines and the news on DHL Global Forwarding's agreement with IAG Cargo are just some examples of major SAF programs that secure capacities and enable forwarders to offer GHG emission-reduced air freight services to shippers. These offtake agreements are key in providing security for investments in the build-up of SAF capacity.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "20916263-4c69-404c-a3c6-2a6dd6176ecf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.45, "x": 0.036, "y": 0.56 }, "kind": "paragraph", "text": "A shortage of supply and high-level investments required under significant uncertainty will be the bottleneck for the extensive use of SAF going forward. As highlighted in Strategy&'s recent SAF Study, an estimated up to 1,000 billion EUR in CapEx will be required to establish SAF refineries to satisfy net zero-enabling demand by 2050. This poses a huge challenge for the whole ecosystem of public and private stakeholders. We already see examples of cooperation in wider industry networks to create SAF infrastructure and supply chains (e.g., Vancouver airport on BioPortYVR initiative). But concerted actions shall go further and remove roadblocks by (1) investing in demonstration facilities and plant development projects to prove that the technology can produce at mass scale, (2) diversification of feedstock to reduce dependence on availability and price fluctuations, (3) hedging of financial risk to ensure significant investment, (4) clarification of regulations to provide greater certainty for stakeholders and (5) further upskilling of corporate customers to increase awareness around SAF and attract new investment. With targeted action, SAF is a considerable lever in reducing the 2.5% CO2 emissions currently contributed by global aviation.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b20bd1df-d0f7-47b7-8aed-0bbb40fb740f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.45, "x": 0.036, "y": 0.92 }, "kind": "source-note", "text": "Sources: Air Liquide, Nasdaq, Strategy&, Transportandlogisticsme.com, Bolloré Logistics, Environmentenergyleader.com, Caafi.org", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2b8ae083-9733-4090-8435-195c5851e637", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.45, "x": 0.036, "y": 0.135 }, "kind": "title", "text": "Air freight with focus on Sustainable Aviation Fuels (SAF)", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "22d3938b-59d9-47dd-a8e6-199c02083b04", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Scenario planning", "slug": "scenario-planning", "agent": null, "layer": "block", "matchId": "d9b64a3c-dfc0-469a-86f4-a2ff199a0193", "evidence": "keyword-coverage: scenario, uncertainty", "confidence": 0.2 } ], "frameworks": [], "arcBeats": [ { "to": 27, "from": 21, "beatId": "e2f306cd-400f-4466-bbbf-d4bc27124158", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Solution & Approach", "beatSlug": "consultants-gambit-solution-approach", "evidence": "The deck presents solutions and approaches for transformation in ports and decarbonization.", "position": 3, "confidence": 0.8, "parentBeatName": "Turn", "parentBeatSlug": "turn" } ], "loops": [ { "to": 27, "from": 21, "name": "Golden Circle", "slug": "11-golden-circle", "bestFor": "Visionary leadership, brand positioning, mission statements", "matchId": "83d53bbc-3ccf-437e-bcbe-b925f167f4d6", "evidence": "The deck explains the importance of decarbonization and its impact on the industry.", "position": 1, "objective": "Why is decarbonization a major transformation challenge?", "structure": "The Why (Belief) -> The How (Process) -> The What (Result)", "confidence": 0.7, "description": "Invert the typical pitch by starting with why you exist, rather than what you do" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }