Taxation is a blunt instrument, IATA chief Willie Walsh says: ‘The carrot is far more effective than the stick’
The aviation industry requires more carrot and less stick going forward to become more sustainable, according to the director general of the International Air Transport Association.
Speaking at CNBC’s Sustainable Future Forum on Friday, Willie Walsh was asked if subsidies and tax breaks to encourage investments into cleaner energy were more effective than firms or consumers being taxed for emitting higher levels of carbon.
“Quite honestly, all of the evidence that we have available shows that the carrot is far more effective than the stick,” Walsh replied.
Expanding on his point, Walsh went on to describe taxation as being “a very blunt instrument — in many cases, actually, it would make our industry less efficient.”
“I don’t think it would stop the number of planes flying, it would definitely reduce the number of people flying on the planes,” he added. “And that would be a silly thing to do.”
“What we need to do is to ensure that our planes are more full rather than less full, and to provide incentives to produce sustainable aviation fuels which will make a genuine impact on the environmental footprint of aviation.”
The European Union is currently looking to revise its energy taxation directive. Among other things, this would see both maritime and aviation fuels taxed.
Net-zero goals
In Oct. 2021, IATA member airlines passed a resolution “committing them to achieving net-zero carbon emissions from their operations by 2050.”
Given the fact it’s a crucial cog in the global economy, conversations about aviation and its effect on the environment will undoubtedly take place at the COP27 climate change conference being held in Sharm el-Sheikh, Egypt.
This is because despite its importance, aviation has been described by the World Wildlife Fund as “one of the fastest-growing sources of the greenhouse gas emissions driving global climate change.”
The WWF also says air travel is “currently the most carbon intensive activity an individual can make.”
During his appearance at the Sustainable Future Forum, IATA’s Walsh was asked how difficult it was for the airline industry to decarbonize compared to others.
“It’s very difficult … we account for about 2.4% of manmade CO2 today,” he said.
“We recognise however, as other industries decarbonize — and for many of them there are relatively simple pathways to decarbonization — our contribution will increase, because we will continue to be dependent on kerosene to power our aircraft,” he added.
“Now, technology will provide some solutions but … we’re not prepared to depend on something being developed in the future, we recognize we have to do something now.”
“So for us, the key to our goal is the use of sustainable aviation fuels — the science there is proven.”
“What we’ve got to do is turn what is very low levels of production of sustainable fuels into widespread availability.”
This, Walsh argued, represented a real opportunity not only for the industry but “countries around the world to start producing a sustainable jet fuel.”
Such a move would “address the environmental issues but … also create jobs.”
The overarching idea behind sustainable aviation fuels is that they can be used to reduce an aircraft’s emissions.
In terms of content, aircraft maker Airbus has described SAF as being “made from renewable raw material.” It’s stated that the most common feedstocks “are crops based or used cooking oil and animal fat.”
There are major concerns in some quarters that an increased uptake of SAF could, among other things, result in significant deforestation and create a squeeze on crops crucial to the production of food, an issue Walsh touched upon earlier this year.
Back at the Sustainable Future Forum, Walsh struck an optimistic tone about his sector’s prospects going forward, whilst acknowledging that work lay ahead.
“I think the fact that we are committed to net zero by 2050 is important, but demonstrating that we have a credible pathway to … net zero is equally important,” he said.
“And people are beginning to recognize that through sustainable aviation fuels and other initiatives … we can achieve that clear goal.”
Volvo Cars took the wraps off new-for-2026 S90 plug-in hybrid, calling the big sedan the most elegant and comfortable 90 yet, promising nearly 50 miles (80 km) of all-electric range and a comprehensive suite of high-end technology and design updates … but if you’re reading this in English, you probably can’t have one.
The updated Volvo S90 is still blinking into the spotlight, but there are already reports that Volvo Cars has decided against bringing the slick new sedan to the US. And Canada. And the UK. And … you get the idea.
That’s too bad, too – because the SPA S90 has always been a comfortable and capable performer. Alas, sedans aren’t selling, you could get whiplash trying to keep track of all the tariff news these days, and Volvo (like a lot of companies in 2025, frankly), no longer needs the English-speaking world to keep it profitable.
“The S90 is a key part of our product portfolio for the coming years in some of our Asian markets,” says Erik Severinson, Chief Product and Strategy Officer at Volvo Cars. “Together with the new fully electric ES90, the new S90 ensures we have a complete and attractive offering for customers who value safety and want to drive a large, sleek Volvo sedan.”
Invoking the electric-only ES90 EV is a key point here – and Volvo is pushing its marketing heavily into the idea that the PHEV version(s) of the face-lifted luxo-cruiser is “really” an EV, with press copy that reads:
As a plug-in hybrid, the new S90 is an electric car with a back-up plan. It offers 80 kilometers of fully electric range on a single charge under the WLTP testing cycle, while also providing more power when needed. This means that many S90 drivers will be able to do their daily commute with zero tailpipe emissions. Volvo Cars’ data shows that nearly half of the distance covered by the latest plug-in hybrid Volvo cars is powered purely by electricity.
There’s plenty to unpack there – not the least of which is whether or not the cars’ owners will ever actually plug them in. My personal experience with friends and neighbors who own T8/PHEV Volvos now would tell me that they’re more likely than, say, Jeep Wrangler 4xe owners to plug-in … but it hardly matters at this point.
The new S90 will be available to order for customers in China this summer, with selected other markets following later.
Check out some of the official press photos, below, then let us know whether or not you’ll miss seeing new S90s on English-speaking roads in the comments.
Volvo S90 photo gallery
SOURCE | IMAGES: Volvo Cars.
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On today’s fleet-focused episode of Quick Charge, we talk about a hot topic in today’s trucking industry called, “the messy middle,” explore some of the ways legacy truck brands are working to reduce fuel consumption and increase freight efficiency. PLUS: we’ve got ReVolt Motors’ CEO and founder Gus Gardner on-hand to tell us why he thinks his solution is better.
You know, for some people.
We’ve also got a look at the Kenworth Supertruck 2 concept truck, revisit the Revoy hybrid tandem trailer, and even plug a great article by CCJ’s Jeff Seger, who is asking some great questions over there. All this and more – enjoy!
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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Thanks to Trump’s repeated executive order attacks on US clean energy policy, nearly $8 billion in investments and 16 new large-scale factories and other projects were cancelled, closed, or downsized in Q1 2025.
The $7.9 billion in investments withdrawn since January are more than three times the total investments cancelled over the previous 30 months, according to nonpartisan policy group E2’s latest Clean Economy Works monthly update.
However, companies continue to invest in the US renewable sector. Businesses in March announced 10 projects worth more than $1.6 billion for new solar, EV, and grid and transmission equipment factories across six states. That includes Tesla’s plan to invest $200 million in a battery factory near Houston that’s expected to create at least 1,500 new jobs. Combined, the projects are expected to create at least 5,000 new permanent jobs if completed.
Michael Timberlake of E2 said, “Clean energy companies still want to invest in America, but uncertainty over Trump administration policies and the future of critical clean energy tax credits are taking a clear toll. If this self-inflicted and unnecessary market uncertainty continues, we’ll almost certainly see more projects paused, more construction halted, and more job opportunities disappear.”
March’s 10 new projects bring the overall number of major clean energy projects tracked by E2 to 390 across 42 states and Puerto Rico. Companies have said they plan to invest more than $133 billion in these projects and hire 122,000 permanent workers.
Since Congress passed federal clean energy tax credits in August 2022, 34 clean energy projects have been cancelled, downsized, or shut down altogether, wiping out more than 15,000 jobs and scrapping $10 billion in planned investment, according to E2 and Atlas Public Policy.
However, in just the first three months of 2025, after Trump started rolling back clean energy policies, 13 projects were scrapped or scaled back, totaling more than $5 billion. That includes Bosch pulling the plug on its $200 million hydrogen fuel cell plant in South Carolina and Freyr Battery canceling its $2.5 billion battery factory in Georgia.
Republican-led districts have reaped the biggest rewards from Biden’s clean energy tax credits, but they’re also taking the biggest hits under Trump. So far, more than $6 billion in projects and over 10,000 jobs have been wiped out in GOP districts alone.
And the stakes are high. Through March, Republican districts have claimed 62% of all clean energy project announcements, 71% of the jobs, and a staggering 83% of the total investment.
A full map and list of announcements can be seen on E2’s website here. E2 says it will incorporate cancellation data in the coming weeks.
Read more: FREYR kills plans to build a $2.6 billion battery factory in Georgia
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