A recent study by the International Air Transport Association (IATA) highlights the crucial role of sustainable aviation fuel (SAF) in achieving net zero carbon emissions by 2050.
The study identifies North America, Brazil, Europe, India, China, and ASEAN nations as key drivers of global SAF output.
Key Findings:
– Regional Opportunities: Local SAF production can create jobs, stimulate economies, and support energy security goals.
– Collaboration is Key: Governments, energy producers, investors, and the aviation sector must work together to de-risk investment and accelerate rollout.
– Policy Certainty: Clear policies and cross-sector collaboration are vital to unlocking the scale needed for SAF production.
– Urgency to Act: With only 25 years to turn potential into reality, immediate action is necessary to drive progress.
Market Growth Drivers:
– Increasing Demand: Rising airline commitments to net-zero emissions and government regulations.
– Advancements in Technology: Improvements in feedstock processing and refining technologies.
– Investment and Partnerships: Growing investments in SAF production facilities and partnerships between airlines, fuel producers, and governments.
Regional Market Outlook:
– North America: Expected to account for the largest share of the SAF market, driven by favorable policy support, technology growth, and availability of large-scale aviation and energy companies.
– Europe: Targets a 6% sustainable fuel blend by 2030, rising to 70% by 2050, driving investment in SAF production.
– Asia-Pacific: Governments are offering incentives to support SAF adoption, with potential for significant growth.
According to IATA’s Director General, Willie Walsh, “we now have unequivocal evidence that if SAF production is prioritised, then feedstock availability is not a barrier”.
IATA’s Senior Vice President Sustainability and Chief Economist, Marie Thomsen, emphasised the need for collaboration and policy certainty to unlock SAF’s potential.