ICAO and IRENA launch Finvest platform to connect sustainable aviation projects with financiers

The International Civil Aviation Organization (ICAO) and the International Renewable Energy Agency (IRENA) have formally launched Finvest@ETAF, a global portal to connect developers of clean aviation projects with financial backers. The ICAO-IRENA collaboration, announced in Montreal ahead of the 42nd ICAO Assembly, is largely designed to accelerate production of sustainable aviation fuels. The Finvest concept was unveiled by ICAO in late 2023 during the third Conference on Aviation and Alternative Fuels (CAAF/3) held in Dubai, and the IRENA partnership now brings it to life. Initially, Finvest will be hosted on IRENA’s Energy Transition Accelerator Financing (ETAF) platform as an entry point for project developers seeking funding to be introduced to a global network of public and private financiers. Applications will be screened by ICAO and IRENA before being presented to financing and de-risking partners within the ETAF platform. As the IRENA collaboration matures, ICAO will introduce other financing partners to expand the concept.

The Finvest initiative has been launched amid growing industry concerns about insufficient production of SAF and other low carbon aviation products, the high costs to airlines of procuring the fuels and uneven access to supplies as global demand for air travel continues to soar. Passenger journeys are expected to at least double by 2045, five years before the industry’s deadline for achieving net zero carbon emissions.

The formal launch of Finvest@ETAF was the core announcement of the ICAO Innovation Fair, which preceded the Assembly and served as an incubator for policy ideas and partnerships to drive ICAO’s Long Term Strategic Plan for safe and net zero air transport operations.

The announcement was also timed to precede November’s COP30 climate summit in Belém, Brazil, during which sustainable fuels are expected to be a key focus.

“Innovation is providing the foundation for continued progress and sustainable development for future generations,” said Salvatore Sciacchitano, President of the ICAO Council at the launch of Finvest@ETAF.

“This launch marks a significant milestone in aviation’s net zero carbon emission journey,” added Juan Carlos Salazar, ICAO’s Secretary General.

“It is a first-of-its-kind gateway between project developers and financiers,” he explained, to facilitate funding to scale up SAF production and other clean energy solutions for the air transport sector.

“The success of Finvest@ETAF will depend on a strong pipeline of projects from every region. This matchmaking function, using ICAO’s sustainability criteria, helps de-risk investments while ensuring environmental integrity.”

IRENA is the primary intergovernmental agency responsible for the global transition to renewable-based energy. Comprised of 169 countries and the EU, the agency enables international collaboration to help mitigate the impacts of climate change by providing knowledge, technical assistance and capacity building to facilitate projects and investments.

Within IRENA’s scenario of a 1.5˚C increase in global temperatures by 2050, ICAO estimates that SAF could deliver 40-65% of aviation’s carbon emission reductions, the balance coming from initiatives including operational measures, new fleets and electric and hydrogen propulsion systems, early versions of both of which are progressing towards certification for commercial deployment.

“Sustainable aviation fuels will shape the future of flight but the sector has yet to take off at the scale needed,” said IRENA’s Director General, Francesco La Camera.

“By leveraging IRENA’s financing network and ICAO’s technical expertise, Finvest@ETAF will support SAF projects across their entire lifecycle, bringing visibility to bankable projects while helping promising ideas develop into fully-fledged proposals ready to attract investment and move into deployment.”

The Finvest initiative was part of a four-point Global Framework for sustainable aviation fuels, lower carbon aviation fuels and other aviation cleaner energies such as electricity and hydrogen that was agreed by ICAO member states at the CAAF/3 event in Dubai.

ICAO member states agreed at the meeting to a 2030 ‘Vision’ of “an aspirational global interim goal” of a 5% reduction in the carbon intensity of aviation fuel. In addition to financing, the plan focused on policy and planning, regulatory frameworks and implementation support.

(left to right) Jane Hupe, Deputy Director, Environment, ICAO; Juan Carlos Salazar, ICAO Secretary General; IRENA’s Director General, Francesco La Camera; and Salvatore Sciacchitano, President of the ICAO Council

Tony Harrington
Correspondent