With the price of sustainable aviation fuel (SAF) climbing as production increases lag, IATA is calling for policy changes in Europe.
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A recent report from the International Air Transport Association (IATA) predicts worldwide unblended sustainable aviation fuel (SAF) production will top 2 million tonnes (660 million gallons) this year. That still equates to less than 1% of the airlines’ total fuel consumption for the year.
“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs,” said IATA director general Willie Walsh, adding that even that minuscule amount will add $4.4 billion to customers’ fuel cost. “The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate.”
The report noted that most SAF is now being directed to Europe, which saw the widespread introduction of SAF use mandates at the beginning of the year. In response to the imposed mandates and associated compliance fees, IATA stated that the cost of SAF to air carriers there has doubled, making it up to five times more costly than jet-A.
“This highlights the problem with the implementation of mandates before there are sufficient conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonization,” said Walsh. “Europe needs to realize that its approach is not working and find another way.”
He called attention to three areas where governmental action is required: creating more effective policies like subsidies to support the growth of SAF; ensuring proper allocation of renewable energy production to SAF; and accepting Corsia as the sole market-based program to address international aviation’s CO2 emissions.
A recent report from the International Air Transport Association (IATA) predicts worldwide unblended sustainable aviation fuel (SAF) production will top 2 million tonnes (660 million gallons) this year. That still equates to less than 1% of the airlines’ total fuel consumption for the year.
“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs,” said IATA director general Willie Walsh, adding that even that minuscule amount will add $4.4 billion to customers’ fuel cost. “The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate.”
The report noted that most SAF is now being directed to Europe, which saw the widespread introduction of SAF use mandates at the beginning of the year. In response to the imposed mandates and associated compliance fees, IATA stated that the cost of SAF to air carriers there has doubled, making it up to five times more costly than jet-A.
“This highlights the problem with the implementation of mandates before there are sufficient conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonization,” said Walsh. “Europe needs to realize that its approach is not working and find another way.”