Sustainable Aviation Fuel Production Set to Double Amidst Policy Challenges, ET TravelWorld
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The International Air Transport Association ( IATA ) has cautioned that policy and market inefficiencies could obstruct the scaling up of sustainable aviation fuel (SAF), even as global production is forecast to double to 2 million tonnes in 2025. Despite this growth, SAF will still account for just 0.7 per cent of total airline fuel consumption.'While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7 per cent of aviation's total fuel needs. And even that relatively small amount will add USD 4.4 billion globally to the fuel bill,' said Willie Walsh, IATA's Director General. He noted the need for rapid acceleration in production and cost-efficiency gains.European mandates that came into force in January 2025 have driven up SAF costs. Airlines purchasing SAF to meet the EU and UK targets are now facing costs five times higher than conventional jet fuel. Of the USD 1.2 billion market price for the 1 million tonnes expected to be used to meet mandates, an additional USD 1.7 billion in compliance fees could have otherwise reduced carbon emissions by 3.5 million tonnes.'This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonisation,' Walsh added.To support global market development, IATA has launched two initiatives: a SAF registry under the Civil Aviation Decarbonization Organization (CADO), and a SAF Matchmaker to connect buyers and suppliers.IATA is also urging governments to redirect fossil fuel subsidies, integrate SAF into broader energy policy, and uphold the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Only Guyana has made eligible emissions units available for airlines so far.India, the third-largest oil consumer globally, has set a SAF blending target of 2 per cent for international flights by 2028. Through partnerships with ISMA and Praj Industries, IATA aims to support India's biofuel ambitions using global standards and lifecycle assessments.
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