Support sustainable aviation fuels with stimulus packages, governments told

By Luke Barras-hill |

Sustainable Aviation Fuel is currently too expensive and limited in supply.

The International Air Transport Association (IATA) has called on governments around the world to support the development of what is at present ‘costly’ Sustainable Aviation Fuel (SAF).

IATA has made clear that SAF is a critical component in cutting net emissions to half of 2005 levels by 2050, a target reinforced by a resolution made yesterday at the association’s 76th Annual General Meeting.

Stimulus packages could help promote SAF via direct investment, loan guarantees and incentives for the private sector, says IATA.

Meanwhile, regulations could channel feedstock towards hard-to-abate sectors such as aviation as opposed to other low-carbon transport sectors.

PRICE LEVELS ‘UNCOMPETITIVE’ 

According to IATA, SAF is currently on average two to four times more expensive than fossil fuels, with a current global production of approximately 100 million litres a year; a fraction (0.1%) of the total aviation fuel consumed by the industry.

Such stimulus investments could assist in boosting SAF production to the 2% (six to seven billion litres) required to potentially bring SAF in line with the competitive price levels of fossil fuels.

Source: IATA. Click to enlarge.

Alexandre de Juniac, Director General and CEO at IATA said: “We have long known that an energy transition to SAF is the game-changer. But energy transitions need government support. The cost of SAF is too high and supplies too limited. This crisis is the opportunity to change that.

“Putting economic stimulus funds behind the development of a large-scale, competitive SAF market would be a triple win—creating jobs, fighting climate change and sustainably connecting the world.”

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