How Can We Secure the Future of SAF Production?
Around 2.5% of global CO₂ emissions derive from the aviation industry, making flying one of the most carbon-intensive activities.
As global air travel continues to grow, decarbonising the aviation industry is essential to reduce carbon footprint and reliance on fossil fuels.
The International Air Transport Association (IATA) reports that figures for Sustainable Aviation Fuel (SAF) production in 2024 reached 1 million tonnes (1.3 billion litres).
This figure may seem optimistic on the surface — with production volumes doubling since 2023 — but it is notably lower than the 1.5 million tonnes predicted to see in 2024.
This highlights the urgency in tackling the lethargic growth of the aviation industry to help propel our journey to a greener future.
Why is SAF production slowing?
Even though SAF supports the aviation industry in meeting its net zero goals whilst fostering a circular economy, production is continuing to fail to meet demands due to several reasons, including:
- High costs due to complex refining processes
- Feedstock limitations
- Insufficient infrastructure
- Policy and market barriers
- Demand- supply imbalance
These reasons, combined with the fact that oil companies are still receiving support from subsidies, is resulting in SAF production failing to reach predicted targets.
Willie Walsh, IATA’s Director General, explains: “SAF volumes are increasing, but disappointingly slowly.
"Governments are sending mixed signals to oil companies which continue to receive subsidies for their exploration and production of fossil oil and gas. And investors in new generation fuel producers seem to be waiting for guarantees of easy money before going full throttle.
“With airlines, the core of the value chain, earning just a 3.6% net margin, profitability expectations for SAF investors need to be slow and steady, not fast and furious. But make no mistake that airlines are eager to buy SAF and there is money to be made by investors and companies who see the long-term future of decarbonization.
“Governments can accelerate progress by winding down fossil fuel production subsidies and replacing them with strategic production incentives and clear policies supporting a future built on renewable energies, including SAF.”
Meet the International Air Transport Association (IATA)
IATA is a trade association of the world’s airlines.
All member airlines pledge a commitment to reach net zero carbon emissions by 2050 after the 77th IATA Annual General Meeting in Boston.
To reach net-zero by 2050, the IATA has created a strategy that consists of:
- 65% SAF
- 13% new technology, electric and hydrogen
- 3% infrastructure and operational efficiencies
- 19% offsets and carbon capture
How can we increase SAF production?
We must increase SAF production to support global sustainability efforts and secure the aviation industry’s competitiveness in a green economy.
Numerous methods can enhance SAF production, including:
- Financial incentives from governments to make SAF more competitive with fossil-based jet fuel
- Expand feedstock availability through innovation
- Investment in infrastructure to scale SAF production facilities
- Foster global policy alignment
- Partnerships with airlines, fuel producers and technology developers
- Raise consumer awareness
- Foster international collaboration
Marie Owens Thomsen, IATA’s Senior Vice President of Sustainability and Chief Economist, says: “The airline industry’s decarbonisation must be seen as part of the global energy transition, not compartmentalised as a transport issue.
"That’s because solving the energy transition challenge for aviation will also benefit the wider economy, as renewable fuel refineries will produce a broad range of fuels used by other industries, and only a minor share will be SAF used by airlines.
“We need the whole world to produce as much renewable energy as possible for everybody. Airlines simply want to access their fair share of that output.”
Willie echoes this need to drive renewable energy adoption and highlights the urgency for government support.
“Governments must quickly deliver concrete policy incentives to rapidly accelerate renewable energy production," he says. "There is already a model to follow with the transition to wind and solar power.
"The good news is that the energy transition, which includes SAF, will need less than half the annual investments that realising wind and solar production at scale required. And a good portion of the needed funding could be realised by redirecting a portion of the retrograde subsidies that governments give to the fossil fuel industry.”
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