Global production of Sustainable Aviation Fuel (SAF) is projected to hit 2.4 million tonnes by 2026, making up just 0.8% of total aviation fuel consumption. The International Air Transport Association (IATA) estimates reveal the challenge faced by the airline industry in decarbonizing efforts. Airlines are set to invest approximately $4.3 billion in SAF this year, but production levels fall short of meeting the sector’s climate targets.
Willie Walsh, IATA’s Senior Vice President Sustainability and Chief Economist, expressed disappointment in the slow pace of SAF development despite commitments to achieve net-zero carbon emissions by 2050. SAF is anticipated to make up less than 1% of airline fuel usage in 2026, complicating the journey to fulfill future fuel requirements through SAF. Walsh attributed the sluggish progress to ineffective government policies and a lack of interest from oil companies in expanding production capacity.
The aviation industry has been urged by IATA to take coordinated action to boost the growth of sustainable aviation fuels. This includes expanding renewable energy supplies, ensuring open access to fuel infrastructure, enhancing production incentives and investment frameworks, and fostering the development of a global SAF market with ample volumes and economically feasible pricing. Establishing a global “book-and-claim” system has been emphasized to allow airlines and fuel producers to engage in the SAF market universally, while promoting standardized norms and fair competition.
