In January 2024, Tomorrow’s Air, The Adventure Travel Trade Association, and Innovation Norway launched a year-long exploration of climate innovation. Together, we’ve explored crucial topics for businesses through articles and facilitated discussions with industry leaders, journalists and entrepreneurs.
In early October 2024, we gathered at the Norwegian Consul General’s residence in New York City with destination leaders, media, investors, policymakers and advocates. The group of about 30 people discussed a range of innovative climate actions including:
- approaches to emissions reductions within businesses;
- new types of public-private partnerships;
- the potential for new technologies to support climate conscious travel;
- the appropriate role for consumers in support of climate conscious travel; and
- the need for ongoing investment to support all these transformations.
On the topic of policy, there is recognition that policies are necessary to create the foundation for continued investment in climate action. For travel businesses, understanding the policy landscape is useful and can help inform successful strategic planning efforts. In this article we take a closer look at the policy realm and the types of governments policy necessary to support necessary innovations for climate.
Policy’s Role in Transforming Business as Usual for Climate Benefit
Policy is necessary for advancing climate action in every sector. While policies supporting innovations for climate are still in formation, there are a few taking shape that will influence the travel industry. For example, large corporate providers will adapt business strategies to meet the standards set by new regulations such as California’s Climate Corporate Data Accountability Act, while smaller businesses will adapt in light of new rules governing communications such as the E.U. 's Green Claims Directive.
In general supportive government policies help further innovation by:
- Establishing emissions standards;
- Establishing energy efficiency standards;
- Supporting research and development funding; and
- Sparking demand for climate conscious products and services, thereby motivating companies to invest in their production.
Scientists estimate that of the 50% cut to emissions needed by 2030 to stay on track for the 1.5-degree target, more than 80% can be achieved from technologies available today. Getting to net-zero by 2050 will, however, require technologies that are still under development or yet to be invented.
And yet, IMF research also indicates that momentum in so-called “green innovation” has slowed. In particular, the researchers note that “promising technologies aren’t spreading fast enough to lower-income countries, where they can be especially helpful to curbing emissions.”
Engineered forms of carbon removal make up one key area of innovation ripe for advancement. (Carbon removal means taking carbon dioxide out of the atmosphere and storing it for hundreds to thousands of years. Innovative forms of engineered carbon removal contrast with conventional carbon offsets, which often aim to avoid emissions or protect natural mechanisms for absorbing carbon dioxide such as forests.)
When it comes to policies to support carbon removal innovations, a recent survey offers a helpful perspective. Polling nearly 700 experts, the report identified several key policies necessary to overcome existing barriers, with carbon pricing and government purchase of carbon removal emerging as the most effective strategies to make large-scale carbon removal viable and efficient. Despite numerous challenges, experts are optimistic, predicting multi-gigaton scale carbon dioxide removal to occur by 2050. The experts polled reinforced that the industry will not reach the scale necessary, however, without demand-pull policies and additional support for research and development.
The report estimated that if research and development funding is coupled with policies like carbon pricing, net-negative emissions could become feasible by 2050, or even earlier. In fact, a real-time test of this approach is underway already with the new Voluntary Carbon Markets Joint Policy Statement. The statement is a collaborative declaration aiming to improve the standards, transparency and governance of voluntary carbon markets. It calls on governments, private companies, and climate startups to work together and help ensure the credibility of carbon removal credits.
The impact the Policy Statement is already having on the carbon dioxide removal market was discussed in a recent webinar hosted by Patch: the conversation highlighted Charm Industrial, a climate startup focused on bio-oil sequestration and a semifinalist in the DoE’s Purchase Pilot Prize. Through the support of the prize, Charm has doubled their machine capacity in the last year. By providing clear guidelines and financial support, these initiatives will help build trust and make investment in climate innovation more accessible to individuals and businesses of all types.
Since the 1970s, we’ve witnessed a dramatic shift in policy as environmental initiatives have gained prominence, reflecting a growing global consciousness about climate change and its impact. Some landmark policies in the United States include: The Clean Air Act, The Clean Water Act, the establishment of the Environmental Protection Agency, and international agreements like The Paris Agreement. The newer policies mentioned previously, like the Joint Policy Statement, the E.U.'s Green Claims Directive, and California’s Climate Corporate Data Accountability Act reflect the need for ongoing evolution in environmental policy to effectively support emerging carbon removal and offsetting markets, while addressing new environmental challenges such as biodiversity loss and resource depletion.
With the rapid pace of climate change, the slow development and implementation of government policies are not enough on their own. For travel businesses wanting to do their part to support climate innovations, Tomorrow’s Air offers an immediate way to help - we make cleaning our atmosphere simple with an easy way to invest in technical forms of removal as well as sustainable aviation fuel.