The World Travel & Tourism Council (WTTC) is calling on governments around the world to “get serious” about incentivizing Sustainable Aviation Fuel (SAF) production and setting ambitious targets to produce adequate quantities. SAF is expected to deliver the majority of greenhouse gas abatements needed to achieve net-zero carbon emissions by 2050.
Unfortunately, SAF production rates are insufficient to meet demand, and prices remain high.
Our Analysis: SAF Needs to Be Developed on a Wider Scale
For people to continue to want to travel despite the industry’s negative effects on climate change, SAF needs to be developed on a wide scale. To address this issue, the WTTC is calling on governments to provide strong incentives to encourage investment in SAF production. The aviation industry expects to reach net-zero carbon emissions through the use of SAF and other innovative new propulsion technologies, such as hydrogen and electric; by deploying modern fuel-efficient aircraft fleets; by making operational efficiency improvements; and with a range of other initiatives such as offsetting or carbon capture.
The demand for SAF has never been higher, airlines all over the world want to use SAF and have used every molecule ever made.
Fast Facts: The Sustainable Aviation Fuel Landscape and WTTC's Ambitions
- WTTC called on governments to provide strong incentives to encourage investment in SAF production, including tax credits, grants or other financial incentives; work with the sector to set ambitious SAF production targets; and coordinate their actions through the International Civil Aviation Organization (ICAO), the specialized UN agency for aviation.
- The WTTC said an example of a successful incentive program is the recent Inflation Reduction Act in the U.S., which created tax incentives for SAF production that are already bearing fruit.
- According to the WTTC, at today’s prices, SAF is, on average, three to five times more expensive than traditional fossil fuels.
- The International Air Transport Association (IATA) recently launched a new policy aimed at accelerating SAF production. The policy calls for governments to take a leading role in facilitating the scale-up of SAF production. It also underscores the need for policies which are harmonized across countries and industries to provide a level playing field for the global civil aviation industry.
What They Are Saying: Rapid and Sustained Development of This Fuel Is the Answer
“It is time for governments to take bold action and prioritize the production of sustainable aviation fuel,” said Julia Simpson, president and CEO of the WTTC. “We are calling on all governments to act now. The demand for SAF has never been higher, airlines all over the world want to use SAF and have used every molecule ever made. However, current SAF production only meets 0.1% to 0.15% of requirement, despite a 200% increase in production in 2022 vs 2021. This leaves a massive gap that can only be filled through rapid and sustained investment. The G7 leaders have an opportunity to deliver critical leadership on this issue by following-up on the commitment of their Climate, Energy and Environment ministers to accelerate efforts to decarbonize the aviation industry, including through the promotion of SAF.”
