The Pegasus Guidelines are a voluntary standard for financial institutions to independently measure and disclose the emissions intensity and/or climate alignment of their aviation lending portfolios. This sector-specific standard was designed by the Center for Climate-Aligned Finance at RMI and shaped by a core Working Group of global financial institutions, comprising BNP Paribas, Citi, Credit Agricole CIB, Societe Generale, and Standard Chartered. Approximately 70 organizations spanning industry, finance, and civil society reviewed the proposed methodology and provided input throughout the process.
The aviation sector accounts for 2.5% of global CO2 emissions and this fraction is projected to increase significantly in the coming decades — under a business-as-usual scenario, air traffic may consume up to 10% of the planet’s remaining 1.5°C carbon budget through 2050. In addition to rising demand, the sector faces unique decarbonization challenges. Many of the identified climate solutions, such as sustainable aviation fuels (SAFs), hydrogen and battery-powered electric propulsion, and next-generation aircraft design, will require further technological development or are not yet available at sufficient commercial scale. Financial institutions can play an important role in supporting decarbonization solutions for the sector through financing the technologies, projects, and companies that can contribute to a zero-carbon future.