How government sustainability policy impacts business travel

Australia’s government has set a new target of reducing greenhouse gas emissions. The new goal is to reduce emissions by between 62% and 70% below 2005 levels, by 2035. This target is in addition to its goal to achieve net zero by 2050. Read more on AP.  

In 2025, the Australian Government committed $1.1 billion to support the production of low carbon liquid fuels (LCLF) in Australia. This includes renewable diesel and sustainable aviation fuel (SAF). Read more about the announcement here. 

In 2024, a white paper released by the Australian government outlined investment into more sustainable fuel and steps to reduce the noise from aircraft. Read the white paper. 

The Canadian government’s 2035 Emissions Reduction Plan aims to cut emissions by at least 45-50% by 2030, before eventually achieving net-zero emissions by 2050. Read more on the initiatives. 

Green air travel is also one of Canada’s priorities, with the launch of the Initiative for Sustainable Aviation Technology (INSAT) to drive projects in 2023. Read more. 

The Civil Aviation Authority of China (CAAC) launched the country's first technical centre for sustainable aviation fuel (SAF). The centre will focus on standard setting and product research. It will also take the lead in mapping out industry policy and setting up standards for products and quality control, according to two SAF industry executives with direct knowledge of the launch. Read more here.

In 2023, the European Union (EU) launched the Corporate Sustainability Reporting Directive (CSRD) to standardise sustainability reporting across the EU. The first wave of reporting requirements started in 2025 for large, listed companies, banks and insurance firms. More companies will have to report in a phased approach from 2026 – 2029 depending on the size of the company or its European entities. Learn more on the EU website. 

For FCM Consulting’s advice on CSRD, head here. 

Additionally, the European Council aims to reduce emissions by 90% compared to 1990 levels. Plans include packages to decarbonise road transport, aviation and maritime transport. Read more on European Council website.  

France introduced a ban on short-haul domestic flights in 2023. The ban initially affected three routes between Paris Orly and Nantes, Lyon and Bordeaux, where travellers will have to use trains instead. Read more on Le Monde. 

Private jet usage is also under scrutiny in France and could see higher taxes or restrictions to reduce the country’s pollution levels. In June 2025, France was among the countries that pledged to tax premium class flying and private jets. Read more on Reuters. 

Meanwhile, the French Transport Regulatory Authority (ART) has presented its plan for up to 2029, and a mandate on the use of sustainable aviation fuel (SAF) has been proposed, which you can read more on here. 

Additionally, it is now forbidden to advertise products in France as ‘carbon neutral’ without having documentation to prove it, so when a company says it is net zero, it really is.     

Germany amended its Climate Protection Act in 2021, setting a goal of greenhouse gas neutrality by 2045. Read more on Germany’s Federal Government website. In the Environmental Performance Index which ranks countries on climate change indicators, Germany features third in 2024. 

Aside from phasing out the use of coal for energy, the German government is focused on transport initiatives. VAT has been reduced on long-distance rail travel, alongside an increased levy on air tickets, while more car charging points are installed across the country.  

Clean air has also been a big focus to improve the air quality of cities, through the electrification and digitalising of transport. Read more about these initiatives.

The Indian government introduced a string of measures to encourage sustainable practices. The Ministry of Civil Aviation prepared a roadmap towards carbon neutrality and net zero and launched Carbon Offsetting & Reduction Scheme for Aviation (CORSIA) to reduce emissions from international aviation. Meanwhile, the Airports Authority of India (AAI) floated a roadmap for achieving 100% Renewable Energy for airports. Read more here.  

Also, the ministry, in partnership with the International Civil Aviation Organization (ICAO) and with support from the European Union officially released the Sustainable Aviation Fuel (SAF) Feasibility Study for India to assess the potential for producing and utilising drop-in Sustainable Aviation Fuel (SAF) in India. Know more. 

To ensure sustainable practices across hotels, the Global Sustainable Tourism Council (GSTC) and The Hotel Association of India (HAI) signed a Memorandum of Understanding (MoU) to promote sustainable practices and the GSTC criteria. Here are the details. 

Ireland has a commitment to reach a climate neutral economy by 2050. Its focuses include air quality, drinking water, noise reduction and working to reduce carbon emissions. Read more from the Environmental Protection Agency. 

Additionally, changes made in food production will have a much larger impact on the travel industry, and in any business or location that sells meals, drinks or snacks. Many hotels, not just in Ireland but around the world, are increasingly looking at ‘farm to fork’ style dining or choose to support local communities and resources.    

The Japanese government proposed to replace 10% of its jet fuel demand with SAF by 2030. In line with Japan’s Green Growth Strategy, the government, along with the expertise from various industry stakeholders, outlined several initiatives. Read more here.

Meanwhile, in a major step towards decarbonisation, major Japanese companies launched Japanese-made SAF. Here are the details. 

Mexico’s Ministry of Tourism established a new strategy called México Renace Sostenible, or Sustainable Mexico Reborn, aimed at designing and implementing programmes that work to create harmony between social welfare and the environment. It’s based on part of the 17 Sustainable Development Goals (SDGs) of the United Nations (UN), adopted in 2015, which outline sustainable opportunities to improve the lives of all people around the world by 2030. 

Within Mexico’s Sustainable Tourism strategy, which also applies to the corporate travel sector, a strategic partnership exists between the government, tourism service suppliers, travellers, and private companies to ensure tourism is carried out in an eco-friendly and equitable manner. Another initiative within this sector is ADAPTUR, which, in coordination with corporates, proposes to implement climate change mitigation measures to guarantee the conservation of biodiversity, ecosystems, and environmental services in destinations that depends on tourism for economic development. 

Mexico’s Secretary of Energy publishes a yearly report that details in country’s strides in energy and sustainability. You can read the report here (Spanish). 

As one of Europe’s busiest airports, Amsterdam’s Schiphol has been under the spotlight. The Dutch government previously tried to cut capacity at the airport by 20% but the plan was dropped in November 2023.  

In May 2024, the Dutch government submitted a proposal to limit night flights and ban certain aircraft, as reported in BTN Europe. A full night flight ban is not in place, but watch this space for this on-going story.  

New Zealand aims to achieve net zero by 2050 and reduce emissions by 51-55% by 2035 compared to 2005 levels. As of late 2025, it is yet to be decided whether international aviation and shipping will be included in the targets. Read more here. 

All four countries in this region rank in the Environmental Performance Index top 10 in 2024. Finland in 4th, Sweden in 6th, Norway in 7th and Denmark at 10th.  

Finland has been leading affordable clean energy and is now predominantly powered by green energy. It is aiming to be carbon neutral by 2035. Read more on RatedPower. 

Sweden was the first country to pass an environmental protection act in 1967, and around 60% of its national energy supply comes from renewables.  

Singapore aims to reduce domestic aviation emissions from airport operations by 20% in 2030. The government wants to achieve net zero domestic and international aviation emissions by 2025 by deploying renewables. Read more here. 

The southeast Asian country has also called for using SAF to achieve 1% target. Singapore has asked all flights departing from the country to use sustainable fuel and plans to raise it to 3-5% by 2030. More info here. 

South Africa plans to reach net-zero emissions by 2050 under its Low-Emission Development Strategy. While aviation impacts are unclear, experts are looking into sustainable aviation fuel, industry policy changes, and a focus on balancing travel with environmental goals. Read more here. 

The Climate Change Act 22 of 2024 mandates emissions measurement, reduction, and reporting for all South African businesses, with sector-specific targets and penalties focused on high-emission industries. More info here.   

Spain has joined France in an agreement to tax premium flyers and private jets, as reported by Reuters.  

Already a leader in renewable energy, Spain is also well positioned to focus on power in its efforts to decarbonise. Electrification, green hydrogen and biofuel are all innovations that Spain could use across multiple sectors including aviation and transport.  

As a major tourist hub in Europe, Spain’s Ministry of Industry, Commerce and Tourism pledged to plug EUR1.9 billion into tourism destinations to strengthen their environmental, socio-economic and territorial sustainability efforts over 2021-2024. 

Since May 2025, UAE climate law requires companies to monitor and reduce their emissions or face fines. Called the Reduction of the Effects of Climate Change, emission reporting and climate adaptation measures are now mandatory across all sectors. Read more from KPMG. 

In January 2023, UAE companies began exploring the production of sustainable aviation fuel (SAF), while the MEA region's first 100% SAF flight was operated in the same month. 

In Turkey, Istanbul Airport has set the bar high for a sustainability-focused airport, aiming to become carbon neutral by 2050 through multiple initiatives. Read more about the approach here  

Aligning with the Paris Agreement, the UAE and Oman have committed to achieving net zero by 2050. Read more about the UAE's commitment to net zero here. Meanwhile, some other Middle East countries are working towards their own goals: Qatar (2030), Saudi Arabia (2060), Oman (2050). 

The General Policy for Sustainable Aviation Fuel (SAF) aims to decarbonise the aviation sector and position the UAE as a regional hub for low-carbon aviation fuel. To achieve this, the UAE intends to develop its local capacity for SAF, enabling the production of 700 million litres of SAF annually by 2030. It will then use this supply to meet 1% of the fuel needs for national airlines by 2031. More on this here.   

In the Environmental Performance Index which ranks countries on climate change indicators, the UK was ranked fifth in 2024.  

A legally binding framework for reducing emissions was created with the Climate Change Act 2008. Goals include achieving net zero emissions by 2050 and an independent advisory body to provide expert advice. Read more on LSE website. 

However, there have been criticisms of approved plans to move and enhance a second runway at London Gatwick Airport, due to the additional thousands of flights that would operate from the airport. Read more on BBC News. 

Since assuming office for the second time in January 2025, the Trump administration has taken major steps to roll back and replace previous environmental legislation in favour of fossil fuels and nuclear energy. 

In March 2025, the Environmental Protection Agency announced 31 steps the agency will take to deregulate itself in line with Trump’s executive orders and support the “Powering the Great American Comeback” initiative. The Executive Order “Unleashing American Energy” paused all environmental funds appropriated by the Biden Administration’s Inflation Reduction Act and the Infrastructure Investment & Jobs Act.