Why Must Governments Boost Sustainable Aviation Fuel for Net-Zero 2050?
Key Points
- 1SAF is critical for 65% of the emissions reduction needed to reach net-zero 2050.
- 22024 SAF production was 1 million tonnes, only 0.3% of global jet fuel use, falling short of projections.
- 3IATA urges governments to replace fossil fuel subsidies with strategic production incentives to hit a 30 billion liter 'tipping point' by 2030.
- 4The high cost of SAF (2-4x fossil fuel price) and slow production growth threaten airlines' 2030 sustainability targets.
The International Air Transport Association (IATA) is urgently calling for government action. Global airlines call for governments to accelerate sustainable aviation fuel production (SAF). This push is vital to reach the industry’s ambitious net-zero 2050 carbon emissions target. SAF is the most important tool for aviation decarbonization. IATA estimates SAF will provide about 65% of necessary emissions reduction.
SAF is a liquid fuel that reduces CO2 emissions up to 80%. It is compatible with current aircraft technology from manufacturers like Boeing. SAF can be blended directly into existing airport fuel infrastructure. This makes it crucial for long-haul commercial aviation news.
The Production Challenge
SAF production volumes are growing, but too slowly. In 2024, production reached 1 million tonnes. This doubled the 2023 output but was below projections. This volume accounted for only 0.3% of global jet fuel use. IATA projects 2025 production will reach 2.1 million tonnes. This still represents less than 1% of total fuel needs.
A significant supply gap remains between current output and future demand. The high cost of SAF is a major barrier. It is currently two to four times more expensive than fossil jet fuel. In mandated markets, prices can be up to five times higher.
Government Action and Incentives
IATA stresses that market forces alone cannot solve the supply issue. They argue that governments must provide SAF incentives governments can use. These incentives should be large-scale and strategic. This approach mirrors policies that successfully boosted solar and wind energy production.
Governments must wind down existing fossil fuel production subsidies. These funds should be redirected toward renewable energy projects. This will help scale up sustainable aviation fuel production. With effective policy support, IATA believes production could hit 30 billion liters by 2030.
- Redirect fossil fuel subsidies to SAF development.
- Allow existing refineries to co-process renewable feedstocks.
- Invest in alternative SAF pathways beyond HEFA.
Poorly designed mandates, such as those in Europe, can be unhelpful. They have not led to greater production. Instead, they have increased the price of SAF for airlines. Regulators like EASA and the FAA must prioritize production incentives.
Industry Impact and Future Outlook
Decarbonization of aviation requires massive infrastructure investment. IATA estimates 3,000 to 6,500 new renewable fuel plants are needed. This requires an annual capital expenditure of about $128 billion. Airlines are eager to buy SAF and have signed purchase agreements. However, many airlines may miss their 2030 SAF targets. This is due to the current slow pace of production growth.
The global airlines call is an urgent plea for policymakers. They must turn targets into tangible SAF production. Feedstock availability is not the main barrier. The challenge is accelerating technology rollout and investment. This is essential for the industry to meet its IATA net-zero 2050 commitment. For more commercial aviation news, visit flying.flights.
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