SMBC Aviation Capital will start offering its airline customers carbon credits aligned to the United Nations' Sustainable Development Goal in leasing contracts. SMBC Aviation Capital will initially invest $53.3 million in carbon credits based on energy-efficient cookstove projects.
Chief Executive Peter Barrett said: “In a hard to abate sector carbon offsetting was an interim measure to lower its impact on greenhouse gas emissions.”
SMBC Aviation Capital said in a statement that the scheme, which is certified by Gold Standard and Verra, will reach 3.2 million households in Africa, Asia, and the Americas.
SMBC Aviation Capital owns, manages, or has commitments to buy a total of 730 aircraft, however, the company has limited options in the short term to reduce its carbon footprint, with most efforts focused on offsets, more fuel-efficient aircraft, and sustainable aviation fuel.