T&E’s Post

Sustainable Aviation Fuel (SAF) is a key lever in the airline industry’s #decarbonization efforts, however, air passengers’ views on SAF highlight a number of challenges that lie ahead. Passengers understand the magnitude of the task to ramp up SAF production as quickly as possible, from its current low level. Consumers consider that both oil companies and governments have a responsibility to address the issue of making sufficient quantities of #SAF available; 86% of respondents noted that SAF production should be a priority for the major oil companies, and 71% agreed that oil companies should do more to produce SAF in larger quantities. Passengers also concurred that the role of government policy is critical in helping establish sufficient SAF supply and incentivizing #airlines to use SAF, at 86% of respondents for both questions. Without a supportive policy environment, scaling SAF production, and achieving aviation’s decarbonization more broadly, becomes increasingly difficult. More on the #WeeklyChart and SAF https://bit.ly/3S6HO8J

The 5 Asia Pacific countries included in this survey are at different stages of SAF policy development, so it is interesting to see what passengers in these countries think. Two consultations are ongoing in Australia - on the opportunity to tap into Low Carbon Liquid Fuels and the development of the Transport and Infrastructure Net Zero Roadmap and Action Plan. Japan and Singapore have introduced a variety of demand and supply side measures. India and Indonesia, ranked among the top 5 global aviation markets in the next decades, will play a pivotal role in both the supply and adoption of SAF. It is reassuring that passengers in these markets also understand the importance of ramping up SAF, and the crucial ingredient of supporting policy as an enabler. While supply vs demand is often discussed as a chicken and egg - which comes first issue, I'm glad to see that a large majority of passengers agree governments and oil companies must do more to boost SAF production. Policymakers should ensure sufficient supplies of SAF before implementing demand side measures. Otherwise, airlines will struggle to comply and everyone would be chasing after limited supply, which would put further pressure on prices.

American Airlines Discusses #SAF Potential In 2023 #Sustainability Report American Airlines has set a goal to achieve 10% SAF usage by 2030. The recently released Sustainability Report outlines actions the airline is taking to achieve that goal and highlights policy mechanisms and stakeholder actions that can support the growing SAF industry. #biofuel #buodiesel “Scaling the SAF market so fuel is available at the volume and price needed to make a real dent in aviation’s climate impacts — and to help American reach our climate goals — depends on bolder action by policymakers, increased investment by energy companies and more innovative financing approaches,” American Airlines said in the report. “We’ve seen progress — the recently enacted SAF blenders tax credit and similar efforts in states like Illinois are key steps forward — but we need more.” https://lnkd.in/dCmSeECg

Air New Zealand on Tuesday dropped its 2030 carbon emissions intensity target and announced it is withdrawing from the Science Based Target initiative (SBTi), citing uncertain regulatory support and lack of sustainable aviation fuel (SAF) supply. The carrier had set itself a target of reducing its emissions intensity by 28.9% below 2019 levels by the end of this decade on its way to hitting net zero by mid-century, working with the SBTi on how to achieve it. However, those plans have now been scrapped and the goal removed from the carrier’s website. “Many of the levers needed to meet the target, including the availability of new aircraft, the affordability of alternative jet fuels, and global and domestic regulatory and policy support, are outside the airline’s direct control and remain challenging,” Air NZ said in an announcement to NZX, the New Zealand stock exchange. The company said it remains committed to its 2050 net zero emissions target, and that it has begun work to consider a new near-term emissions target. Read our coverage in full 👉 https://lnkd.in/dyBvn4f7

From my point of view, the key is to re-evaluate the setting of emission reduction targets, achieving a balance between feasibility, scientific validity, and urgency of emission reductions. In this context, it is essential to consider industry best practices. Industry professionals may have a more comprehensive understanding of the challenges faced in reducing emissions, but from a news communication perspective, this could leave more people with the incorrect impression that the targets are useless or that emission reduction efforts are being abandoned. Of course, this does not mean that big brands can just set only easily achievable targets. What I would like to emphasise is that while ambition is important, implementation is equally crucial. This is something we have been tirelessly emphasising since Paris. Obviously, offsetting is not a master key. Companies cannot just apply the same simple, even lazy, solution to every difficult challenge. And therefore, the SBTi technical team should not be blamed or criticised for not backing on allowing offsetting in corporate scope 3 targets.

The UK government has announced ambitious targets to ensure that 10% of jet fuel used in UK flights originates from sustainable sources by 2030 through its Sustainable Aviation Fuel (#SAF) mandate, set to be enforced from January 2025 pending parliamentary approval. It has also included a cap on how much SAF made through the HEFA (Hydroprocessed Esters and Fatty Acids) pathway can contribute to the UK market. This mandate, one of the first globally, follows the successful completion of the world’s first commercial 100% SAF transatlantic flight operated by Virgin Airlines from London to New York, and aims to supply approximately 1.2 million tons of SAF annually, contributing to economic growth and job creation. While acknowledging the potential initial cost disparity between SAF and traditional jet fuel, the government assures consumers that decarbonization efforts will not lead to increased flight costs through demand management. The plan includes a review mechanism to mitigate price impacts on ticket fares, with safeguards to prevent significant fare hikes. https://lnkd.in/eQvxuyrb

Government Sets Ambitious Goal: Aiming for 10% of Jet Fuel to be Sustainable by 2030 The government has announced a forthcoming Sustainable Aviation Fuel (SAF) Mandate, scheduled to take effect next year. This mandate will require all flights departing from the UK to utilize at least 10 percent sustainable-certified fuel by 2030. Once approved by parliament, this mandate is expected to boost the production capacity of SAF in the UK significantly. https://lnkd.in/e4C8c5A5 #Policy #Legislation #Transport #Aviation #sustainableaviationfuel #MarkHarper #Biofuel #AirportOperatorsAssociation #TimAlderslade #KarenDee #JetZeroStrategy

Many airlines have promised to get at least 10% of their fuel from cleaner sources by the end of the decade, the use of #SAF grew from 0.04% of global aviation fuel in 2021 to 0.17% in 2023, according to estimates from the International Air Transport Association (IATA). 100% of SAF produced in 2023 was derived from HEFA – used cooking oils are vital in SAF but there is a global shortage on the horizon and security of supply risk. Increased demand for SAF has seen 80% of EU’s used cooking oils imported from Asia. In Europe, and globally, production of SAF cannot keep pace with mandate requirements. GAFT brings best available technology components together with unique patents for a first of a kind and future proof SAF production feedstock. GAFT tackles the HEFA feedstock shortage GAFT with unique and patented technology to meet the rapidly increasing SAF market demand. Read more here from Bloomberg: https://lnkd.in/eCGgdCB5

As airlines look to #decarbonize and governments crack down on heavy industry carbon emissions, some in the #AviationIndustry are turning to sustainable aviation fuel (#SAF). Dive deeper with S&P Global Commodity Insights>> https://okt.to/uwSmLs

Really interesting post. We are working with many airports in respect of their energy transitioning, and helping others at the start of this journey. What’s your plan for the move to SAF? #sustainableaviationfuel