Dear Mr Florian Pfaff, Vice President Lufthansa (LH) Cargo APAC

Ladies and Gentlemen,

It is a great honor for me to welcome you all to the Lufthansa Cargo Sustainability Conference 2024 here in Singapore.

This conference brings together the best minds to discuss and collaborate on achieving our shared goals.

I assume we all agree that air freight plays a crucial role in connecting people, cultures, and economies worldwide.

From the early days of cargo transport, air freight has promoted trade and integration.

It significantly contributes to economic development and prosperity.

It remains a backbone for global supply chains and the transportation of essential goods.

People all around the globe heavily rely on solid supply chains.

At the same time, we acknowledge the need for emission reduction and ressource efficency.

The challenge lies in balancing the competitiveness of air freight while achieving sustainability goals.

A challenge everyone in this room has accepted.

It honors you that you are committed to these goals.

Ladies and Gentlemen,

Germany, as many of you know, is on its sustainability path, guided by its Sustainable Development Strategy – first established in 2002 and regularly adjusted.

A central aspect of this strategy is to transition to a low-carbon economy.

In the context of this conference, the German Sustainability Strategy is particularly relevant because it provides a framework for sustainable development and climate protection, which also affects the air freight and logistics sector.

The strategy emphasizes the need for international cooperation and innovative technologies to achieve sustainability goals.

To better achieve these goals, the German Climate Neutral Aviation Task Force was established in 2022.

Key initiatives include:

1. Increased Sustainable Aviation Fuel Production:

Germany now produces around 2 million tons of Sustainable Aviation Fuel annually, demonstrating a strong commitment to renewable fuels.

2. Technological Innovations Made in Germany:

The introduction of shark-skin technology, advanced wingtip devices, and pilot support systems for fuel-efficient landings are just some of the measures being implemented to enhance efficiency and reduce emissions.

3. Research and Development:

Projects like UpLift H2 Aviation are testing hydrogen technologies, while initiatives like the D-KULT project focus on optimizing flight trajectories to reduce climate impact.

Importantly, addressing the issue of contrails and contrail-cirrus, which are significant contributors to climate impact, is a major focus.

These cloud formations can be mitigated through optimized flight paths and advanced aircraft technologies.

4. Market Incentives:

The government is working to create favorable conditions for private investment in Sustainable Aviation Fuel production, including de-risking instruments and long-term contracts.

Ladies and Gentlemen,

Not only Germany, but also the European Union has introduced crucial legislative initiatives through its “Fit for 55” package to meet climate targets.

These include the reform of the EU Emissions Trading System and the revision of the Energy Taxation Directive.

The ReFuelEU Aviation initiative aims to increase both the demand for and the supply of sustainable aviation fuels, which cause fewer CO₂ emissions than fossil jet fuel, and ensure equal competitive conditions in the entire EU aviation market.

While these measures are necessary for a sustainable future, a fair treatment of EU and non-EU airlines and the introduction of a European climate protection levy system are essential.

Another pressing challenge is the widespread availability of Sustainable Aviation Fuel.

Significant investments are needed to make Sustainable Aviation Fuel more accessible and cost-effective. Collaboration and raising awareness are essential to encourage investment, which will eventually reduce costs over time.

Ladies and Gentlemen,

Not only Germany is ambitious with its sustainability goals.

Singapore's Green Plan 2030 aims to enhance environmental sustainability, including reducing carbon emissions and increasing the adoption of green technologies.

Specific initiatives under the Singapore Sustainable Air Hub Blueprint include

• increasing solar power deployment at Changi and Seletar Airports,
• boosting the use of Sustainable Aviation Fuel with targets to achieve 3-5% Sustainable Aviation Fuel use by 2030,
• and exploring waste-to-energy solutions at the airports.

Between the Singaporean and German Government the Framework for Sustainability and Innovation (FSI), a bilateral agreement established in 2022, exemplifies the commitment of both nations to sustainable development and technological innovation.

Moreover, then DPM and now Prime Minister Laurence Wong and Chancellor Olaf Scholz announced in April this year to upgrade the bilateral relations between Germany and Singapore to the level of a strategic partnership.

It clearly highlights the dedication to an enhanced cooperation in areas such as green technology and sustainable practices.

All these initiatives align seamlessly with Lufthansa's strategies, making them perfect examples of how international collaboration can drive significant progress in global sustainability efforts.

Ladies and Gentlemen,

I am more than confident this conference provides a unique opportunity for mutual learning.

It is only through a holistic approach that we can address the complex challenges of climate change and create a sustainable future for logistics and air freight.

All stakeholders must be heard and must contribute.

So let us continue to work together, with dedication and innovation, to shape a sustainable future for logistics and air freight.

Thank you!