The Environmental Impact of Air Freight in Sydney and How Companies Can Offset It

Air freight carries a small share of world trade by weight but a large share by value. It keeps medicines, fresh food, electronics and urgent spare parts moving quickly between Australia and the rest of the world. It also has a significant environmental cost. For many Sydney businesses, customers and investors are now asking a simple question: what is the carbon footprint of your freight, and what are you doing about it?

This guide explains where air freight emissions come from, how to measure them and how companies can reduce and offset their impact in a credible way. It is part of our broader Air Freight Sydney guide.

Where air freight emissions come from

Most of the climate impact of air freight comes from burning jet fuel. Every kilogram of fuel burned releases carbon dioxide, along with other gases and particles. At cruising altitude, some of these create additional warming effects, such as contrails, which is why many studies suggest aviation's total climate impact is higher than its carbon dioxide emissions alone.

Smaller sources include ground handling at terminals, refrigeration for perishable cargo, and the trucks that carry freight between warehouses and airports. For a shipment leaving Sydney, these first and last-mile legs are small compared with the flight, but they still count.

How air compares with other transport modes

Measured per tonne-kilometre, air freight is the most carbon-intensive way to move goods. Sea freight produces a tiny fraction of the emissions for the same weight and distance, and rail and road also sit well below air. The exact figures depend on aircraft type, load factor and route, but air freight can produce dozens of times more emissions than sea for the same shipment.

This does not mean air freight should never be used. For perishable, urgent or high-value goods, it may be the only practical choice, and it can reduce waste by getting products to market before they spoil. The goal is to use air when it adds real value and to reduce its footprint when you do. Our comparison of air freight and sea freight from Sydney can help you decide which mode suits each shipment.

Why it matters for Sydney businesses

• Reporting requirements. Australia's mandatory climate-related financial disclosure regime is being phased in for larger companies from 2025. Scope 3 emissions, which include freight purchased from others, form part of these disclosures for reporting entities after their first reporting year.
• Customer expectations. Retailers, government buyers and multinational customers increasingly ask suppliers for emissions data and reduction plans.
• Brand reputation. Consumers are paying closer attention to how products reach them, particularly in e-commerce, where express delivery is often by air.
• Cost. Fuel is one of the largest parts of the air freight price. Reducing fuel use through smarter shipping usually lowers costs too.

Step 1: Measure your air freight emissions

You cannot manage what you do not measure. Start by collecting data on your air shipments: origin, destination, weight and, where possible, routing and aircraft type. Many forwarders and airlines now provide emissions estimates with their quotes or reports.

Look for calculations based on recognised methods. ISO 14083 is the international standard for quantifying transport emissions, and the GLEC Framework, developed by the Smart Freight Centre, provides practical guidance aligned with it. Using these methods makes your figures more consistent and easier to compare between providers and over time.

At a minimum, record emissions per shipment and total emissions per year. This baseline lets you set targets and track progress.

Step 2: Reduce before you offset

Offsets should never be the first answer. The most credible approach is to cut emissions where you can, then offset what remains. Practical steps include:

• Shift suitable volume to sea. Regular, predictable stock often does not need to fly. Moving even part of it to sea freight can cut emissions sharply.
• Plan further ahead. Many air shipments happen because orders were placed late. Better forecasting reduces the need for emergency air freight.
• Consolidate shipments. Fewer, fuller shipments usually mean lower emissions per kilogram than many small ones.
• Reduce packaging weight and volume. Lighter, right-sized packaging lowers both chargeable weight and fuel burn. Our guide to calculating air freight costs shows how much volume affects the price as well.
• Choose direct routings. Take-off and landing burn a lot of fuel, so a direct flight is usually more efficient than a route with extra stops, although modern aircraft on a hub routing can sometimes perform well.
• Ask about modern aircraft. Newer aircraft are significantly more fuel-efficient than older models. Your forwarder may be able to prefer carriers with younger fleets on key lanes.
• Clean up the road legs. Electric and low-emission trucks are becoming more common for pick-up and delivery around Sydney.

Step 3: Consider sustainable aviation fuel

Sustainable aviation fuel, or SAF, is made from sources such as used cooking oil, agricultural waste and, in future, renewable electricity. It can be blended with conventional jet fuel and used in today's aircraft. Depending on the feedstock, SAF can cut lifecycle emissions substantially compared with fossil jet fuel.

Supply in Australia is still limited, and SAF costs more than regular fuel. However, several airlines and forwarders offer programs where cargo customers pay a premium to fund SAF use. Under these schemes, the SAF is often used elsewhere in the network, and customers receive a certificate showing the emissions reduction attributed to them. This approach, known as book and claim, is growing in acceptance, but check how the claims are verified before you rely on them in reports.

Step 4: Offset residual emissions responsibly

After reducing what you can, you may choose to offset the remaining emissions by buying carbon credits. Each credit represents one tonne of carbon dioxide equivalent that has been reduced or removed elsewhere. Quality varies widely, so choose carefully.

Options available in Australia

• Australian Carbon Credit Units (ACCUs). Issued under the Australian Government's scheme for projects such as native vegetation regeneration, savanna fire management and landfill gas capture.
• Climate Active. A government-backed certification program for businesses, products and services that reach carbon neutrality using recognised methods and eligible offsets.
• International standards. Credits certified under programs such as Gold Standard and Verra are also widely used, though quality still depends on the individual project.

What to look for

• Additionality. Would the reduction have happened anyway without the credit funding?
• Permanence. How long will the carbon stay stored, especially for forest projects?
• Verification. Has an independent third party checked the results?
• No double counting. Is the credit retired in a public registry in your name?

Step 5: Report clearly and honestly

Share your approach with customers and stakeholders in plain language. Explain how you measured emissions, what you did to reduce them, how much was offset and through which program. Transparent reporting builds more trust than bold marketing claims.

What is changing in Sydney

The opening of Western Sydney International brings new, modern cargo facilities and a location close to the city's distribution hubs, which may shorten some truck journeys. At the same time, airlines are renewing fleets and investing in SAF, and freight technology is making emissions data easier to collect. Growth in online shopping is also driving more air parcels, which is why many retailers are now balancing speed with sustainability. Our article on how e-commerce is shaping Sydney's air freight industry looks at this trend.

Questions to ask your forwarder about emissions

• Which method do you use to calculate emissions, and does it follow ISO 14083 or the GLEC Framework?
• Can you report emissions per shipment and per month?
• Do you offer sustainable aviation fuel programs, and how are the reductions verified?
• Can you suggest lower-emission alternatives on my main lanes, such as sea-air or consolidated services?
• Do you use low-emission vehicles for pick-up and delivery in Sydney?

The answers will show how seriously a forwarder treats sustainability and how much support they can give you with reporting.

Frequently asked questions

Does using WSI reduce emissions?

It may shorten truck journeys for businesses in Western Sydney, which slightly reduces road emissions. The flight itself still accounts for most of the footprint, so reduction efforts should focus there first.

Can I ask my forwarder for emissions data?

Yes. Most large forwarders and many smaller ones can now provide emissions estimates per shipment or per period. Ask which calculation method they use.

Is offsetting enough on its own?

Offsetting alone is increasingly seen as insufficient. Customers and regulators expect to see real reductions first, with offsets used for what cannot yet be avoided.

A balanced approach

Air freight will remain essential for many Sydney businesses. The aim is not to stop using it but to use it wisely, measure its impact honestly and take practical steps to reduce and offset what remains. To learn more about air cargo services across the city, return to our Air Freight Sydney guide.