Sustainability Quarterly – May 2026

Transportation and Industry face complex and expanding sustainability regulatory regimes, including emissions trading schemes, mandatory fuel blending and supply targets, carbon pricing and monitoring, reporting and verification obligations.

Across these sectors, we are entering a decisive phase in the global transition to a low-carbon economy. In this edition, we explore some of the policy, strategic and regulatory issues shaping that journey.

We interview Kristof van Passel, Head of Procurement Operations and Sustainability at Cathay Pacific, on Cathay Pacific’s leadership in accelerating the adoption of sustainable aviation fuel (SAF), outlining how corporate collaboration, strategic investment and supportive policy frameworks are essential to scaling production and reducing lifecycle emissions.

Against this background, we also examine the possibility that the UK government may permit the use of crop-based biofuels to meet SAF supply targets, balancing concerns over land use change and carbon intensity with the practical realities of meeting rising mandate obligations.

HFW Partner Adam Topping and Associate Violet O’Gorman also analyse the forthcoming UK Carbon Border Adjustment Mechanism, a major policy development designed to prevent carbon leakage and align importers with domestic carbon pricing, setting out a practical guide for importers ahead of the entry into force on 1 January 2027.

We also feature our charity partner, the Air League, exploring how its 2026 Global Innovators’ Challenge is helping young people aged 11 to 25 develop Net Zero innovations for the aviation, aerospace and space industries, a timely reminder that talent and creativity sit alongside regulation and market frameworks in driving decarbonisation.

Together, these articles illustrate the interplay between innovation, regulation and market dynamics in driving meaningful decarbonisation.

Finally, we were very proud to win ‘Environmental/Sustainability Initiative of the Year’ at the recent Legal 500 ESG Awards.