Most SAF is being directed towards Europe: IATA
Global airline association, the International Air Transport Association (IATA), has warned that the global Sustainable Aviation Fuel (SAF) production is growing too slowly and is too expensive for the airlines to increase their usage and this poses a serious threat to the industry meeting its target of NetZero carbon emissions by 2050.
IATA says that SAF production will reach 2 million tonnes this year, representing a meagre 0.7 pc of total airline fuel use.
In a press statement, IATA says that most SAF is being directed towards Europe, where mandates by the European Union and the United Kingdom came into effect on January 1.
According to the association, SAF costs in Europe have now doubled for airlines due to additional compliance fees charged by producers and suppliers.
It adds that one million tonnes of SAF is expected to be used to meet European mandates this year. It estimates a market cost of USD 1.2 billion. On top of this, compliance fees could add a further USD 1.7 billion, which could have been used to abate 3.5 million tonnes of carbon emissions. However, SAF is now priced at five times that of conventional jet fuel in Europe.
As per statement, airline association says that to support the development of a global SAF market, it has launched two initiatives. The first is a SAF registry managed by the Civil Aviation Decarbonisation Organisation (CADO), which provides a transparent system for tracking SAF use and emissions reductions in line with international regulations such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the EU Emissions Trading Scheme.
The second is a SAF Matchmaker platform, which connects airlines seeking SAF with available suppliers.
Willie Walsh
“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7 pc of aviation’s total fuel needs. And even that relatively small amount will add USD 4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate,” says Willie Walsh, Director General, IATA.
The statement says that it has urged governments to focus on three priority areas to support SAF development. First, it called for more effective policies to remove the disadvantage faced by renewable energy producers compared with fossil fuel suppliers. It suggested that a portion of the USD 1 trillion in annual fossil fuel subsidies be redirected to support renewable energy, including SAF.
Additionally, it has called for a more integrated energy policy approach that ensures SAF receives an appropriate share of renewable energy output. This includes the development of shared infrastructure and co-production measures to support both aviation and other sectors.
As per statement, the airline association says that it called on governments to support the success of CORSIA as the sole market-based mechanism to address international aviation emissions. The association said airlines must have access to Eligible Emissions Units (EEUs), and noted that Guyana is currently the only country to have made its carbon credits available for CORSIA compliance.
According to statement, IATA says that it has highlighted India’s growing role in global SAF efforts. India is the third-largest oil consumer after the United States and China and has launched the Global Biofuels Alliance to support the use of biofuels in its energy transition. This includes a target of 2 pc of SAF blending for international flights by 2028, which is backed by guaranteed pricing, capital support for new projects, and adoption of technical standards.
The airline association says that it will work with the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and Praj Industries to provide guidance on global best practices for the life cycle assessment of feed stocks used for SAF. As the third-largest civil aviation market, India is well placed to expand its role in global SAF development through supportive policies and investment in domestic capacity.
“This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonisation. Raising the cost of the energy transition that is already estimated to be a staggering USD 4.7 trillion should not be the aim or the result of decarbonisation policies. Europe needs to realise that its approach is not working and find another way,” adds Walsh.
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