Dubai: The International Air Transport Association (IATA) released estimates showing that global Sustainable Aviation Fuel (SAF) production is expected to reach around 2.4 million tonnes in 2026, representing just 0.8% of aviation fuel use, at a cost to airlines of $4.3 billion.

According to Emirates News Agency, Willie Walsh, IATA's Director General, expressed concerns about the current trajectory of SAF production. Five years after the commitment to achieve net zero by 2050, SAF production is projected to account for a mere 0.8% of airline fuel use this year. Walsh highlighted the challenges posed by ineffective government policies and limited interest from oil companies, which are complicating efforts to meet the target of 65% SAF use by 2050. He emphasized the need for urgency in developing renewables, including SAF, in light of the current energy challenges, energy independence goals, job creation, and climate change mitigation.

To expedite the scaling-up of SAF, IATA has identified four key priorities for coordinated action. The first priority is expanding the renewable energy supply to support SAF production and ensure the availability of sufficient feedstocks and clean energy. Secondly, IATA advocates for open access to fuel infrastructure, such as pipelines, storage, and airport fuel systems, to promote fair competition and efficient distribution.

The third priority is to strengthen policy support through effective sequencing of production incentives and investment frameworks, providing certainty and reducing risk prior to imposing mandates. Finally, IATA calls for the establishment of a global SAF market with adequate volumes at commercially viable prices, crucial for the financial and economic sustainability of airlines. A book-and-claim system is deemed essential for transforming the SAF market into a global one, allowing accessibility to airlines and SAF producers regardless of their location. Harmonized standards are also necessary to create enduring rules and ensure fair competition.