Travel Industry News at TravelNewsAsia.com since 1997
Mon, 27 June 2022

Incentives Needed to Increase SAF Production

(27 June 2022, 10:57 +07)  IATA has called on governments to urgently put in place large-scale incentives to rapidly expand the use of sustainable aviation fuels (SAF) as aviation pursues its commitment to achieving net zero carbon emissions by 2050.

To fulfill aviation’s net zero commitment, current estimates are for SAF to account for 65% of aviation’s carbon mitigation in 2050. That would require an annual production capacity of 449 billion liters. Investments are in place to expand SAF annual production from the current 125 million liters to 5 billion by 2025. With effective government incentives, production could reach 30 billion liters by 2030, which would be a tipping point for SAF production and utilization.

Aircraft flying overhead with contrails. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.
Aircraft flying overhead with contrails. Picture by Steven Howard of TravelNewsAsia.com

“Governments don’t need to invent a playbook,” said Willie Walsh, IATA’s Director General. “Incentives to transition electricity production to renewable sources like solar or wind worked. As a result, clean energy solutions are now cheap and widely available. With similar incentives for SAF, we could see 30 billion liters available by 2030. Though still far from where we need to be, it would be a clear tipping point towards our net zero ambition of ample SAF quantities at affordable prices.”

In 2021, irrespective of price (SAF is between two and four times the price of conventional jet fuel), airlines have purchased every drop of the 125 million liters of SAF that was available. And already, more than 38 countries have SAF-specific policies that clear the way for the market to develop. Taking their cue from these policy measures, airlines have entered into $17 billion of forward-purchasing agreements for SAF.

Further investment in production needs support from the right policies. This would boost supply and drive down costs.

Electricity production through solar or wind power faced similar hurdles as these technologies replaced fossil fuels. With effective policy incentives, both are now affordable and widely available.

By applying similar incentive-based policies to SAF, governments can support global SAF production to reach 30 billion liters by the end of the decade. This would be a tipping point as it would send a clear signal to the market that SAF is playing its intended long-term role in aviation’s decarbonization and encourage investments to drive up production and drive down the price.

The market for SAF needs stimulation on the production side. The United States is setting an example for others to follow. Its SAF production is expected to reach 11 billion liters in 2030 on the back of heavy government incentives.

Europe, on the other hand, is the example not to follow. Under its Fit for 55 initiative, the EU is planning to mandate that airlines uplift 5% SAF at every European airport by 2030. Decentralizing production will delay the development of economies of scale. And forcing the land transport of SAF will reduce the environmental benefit of using SAF.

Hydrogen and electrically powered aircraft are part of aviation’s plan to achieve net zero emissions by 2050, but they are likely to be limited to short-haul routes. SAF is the proven solution for long-haul flying.

“Hydrogen and/or electric propulsion systems will most likely be available for short haul commercial flights by 2035, but the majority of emissions come from long-haul widebody flights and to tackle these emissions, SAF is the only proven solution. We know it works, and we need to double down our efforts to get all actors of the industry on board, including governments, to increase production, availability, and uptake” said Sebastian Mikosz, IATA’s Senior Vice President for Environment and Sustainability.

In October 2021, IATA member airlines came together and took the monumental decision to commit to achieving net zero emissions by 2050, a huge challenge as the expected scale of the industry in 2050 will require the mitigation of 1.8 gigatons of carbon.

To provide the right set of consistent policies and long-term stability needed for investments, the aviation industry is calling on all governments to support the adoption of a long term climate goal for air transport at the 41st Assembly of the International Civil Aviation Organization (ICAO) this September, aligned with industry commitments.

This climate goal is critical to back up the industry’s decarbonization ambitions and would provide a global multilateral framework for action without distorting competition.

Latest exclusive video interviewsFuture of Air Travel - Interview with Sumesh Patel, President of SITA Asia Pacific; Miss International Queen 2024 (MIQ 2024) - Interview with Alisa Phanthusak, MD, Tiffany's Show Pattaya, Thailand; 16 HD Video Interviews from Routes Europe 2024 in Aarhus, Denmark; 9 HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia; Standard to Open Residences in Hua Hin and Phuket, Thailand; Video Interview with Amar Lalvani, Executive Chairman; 9 Exclusive Video Interviews from ASEAN Tourism Forum 2024 in Vientiane, Laos; 8 NTO Press Conferences from ASEAN Tourism Forum 2024 in Vientiane, Laos; 13 HD Video Interviews from World Travel Market 2023 in London, England; 5 HD Video Interviews from APG World Connect 2023 in Monaco, France; and 15 HD Video Interviews from Routes World 2023 in Istanbul, TĂĽrkiye.

Headlines: Mandarin Oriental Opens Special Hotel in Beijing, China  AirAsia to Launch Penang - Shenzhen and Kota Kinabalu - Shantou Flights  Boeing Forecasts Passenger and Cargo Needs of China's Aviation Industry  Air Corsica Takes Delivery of ATR's 1,700th Turboprop Aircraft  Minor Hotels to Open Anantara Resort Ubud Bali in October  Uruguayan Air Force to Add A-29 Super Tucano Aircraft to Fleet  Air Astana to Increase Flights to Phuket, Thailand; Signs Codeshare Deal with JAL  Hong Kong Airlines to Resume Long-Haul Flights with Seasonal Gold Coast Service  IHG Signs Two Hotels in Quang Binh, Vietnam  Marriott Opens Moxy Hotel in Mumbai, India  Torsten Richter Returns to Minor Hotels as AGM of Indonesia and Malaysia  Minor Set to Open World's Third NH Resort in Maldives  Asiana Airlines and Air Serbia Appoint APG as GSA  IndiGo to Launch New Delhi - Vijayawada Flights  Hong Kong Airport Reports Strong Increases in Cargo and Passenger Traffic  Delta Begins Rollout of Free Wi-Fi on Long-Haul International Routes  Thai AirAsia X to Resume Flights Between Bangkok and Sydney, Australia  Marriott Partners Sonder to Add Over 9,000 Rooms to Portfolio  IHG Opens Hotel Indigo in Bandung, Indonesia  IndiGo Enhances Operations with Aviobook, an Electronic Flight Folder from Thales  Boeing Invests in Wagner SAF Refinery in Brisbane, Australia  Aeroflot to Resume Flights Between Yekaterinburg and Bangkok, Phuket and Goa  Air Astana Takes Delivery of 56th Aircraft; Confirms Plan to Launch Phu Quoc Flights  Seibu Prince Rebrands Hotel in Singapore  airBaltic Appoints APG as GSA in Egypt  Korean Air and Delta Air Lines Partner Habitat for Humanity to Make a Difference in Cheonan  Air New Zealand, Garuda, Qantas and Singapore Airlines Begin UPR Trials on 38 Routes  Thai AirAsia Reports Q2 and H1 2024 Results; Confirms Full-Year Targets  EL AL Israel Airlines Finalises Deal for 31 Aircraft  Cebu Pacific to Launch Davao - Hong Kong and Iloilo - Singapore Flights  Poland to Become Largest Operator of Apache Combat Helicopters Outside of USA  Singha Estate Partners Ascott for Rebranding of Two Hotels in the United Kingdom  IndiGo to Launch Coimbatore - Singapore Flights; Increase Frequency of Select Services  Parveen Kumar Joins Grand Hyatt Jakarta as General Manager  Azerai Appoints Jimmy Tran as Group Director of Sales & Marketing  South Korea to Strengthen Airborne Surveillance and Reconnaissance Capabilities  AirAsia to Launch Flights from Kuala Lumpur to Port Blair in Andaman and Nicobar Islands  Virgin Australia to Replace Fokker 100s with Embraer E190-E2 Aircraft  Cross Adds Two Hotels in Bangkok, Thailand to Portfolio  airBaltic Exercises Options on 10 Airbus A220-300 Aircraft  Etihad to Increase Thailand Flights; Resume A380 Service to Singapore  Dusit Signs Hotel and Condo on Rama 3 Road in Bangkok, Thailand  Cape and Kantary Hotels to Expand Portfolio with Serviced Suites in Korat, Thailand  Thai Airways Reports Q2 and H1 2024 Results  China Airlines Extends Cargo Handling Contract with FCS  Goldfinch Becomes First Piloted Electric Aircraft to Fly at NASA's Langley Research Center  Rosewood Signs Luxury 33-Suite Resort in Exuma, Bahamas  British Airways Expands Codeshare with Bangkok Airways  Aeroflot Unveils Most Popular International Destinations in H1 2024  Marriott Executive Apartments Open on Sukhumvit Soi 49 in Bangkok, Thailand  Uday Rao Appointed RVP and GM of Four Seasons Hotel Tokyo at Otemachi in Japan  Cebu Pacific to Resume International Flights and Increase Domestic Services from Davao  CapitaLand Ascott Trust Secures OCBC 1.5°C Loan  Sabre Hospitality Enhances SynXis Booking Engine with Trip Protection Services  Cathay Pacific Orders 30 Airbus A330-900 Aircraft  Haytham Said Appointed GM of Four Seasons Hotel Miami  Hong Kong Airport Launches World's First Smartphone Express Bag Drop Service  Marriott Signs W Hotel in Hangzhou, China  IndiGo Selects Recaro's R2 and R5 Seats for New A321neo Aircraft  Scoot to Take Delivery of Jalan-Jalan and Travel Kaki E190-E2s in September and October  Ali Mohammed Appointed Regional Vice President and GM of Four Seasons Resort Orlando  Marriott Opens Fourth Executive Apartments Property in Bangkok, Thailand  AirAsia X to Resume Kuala Lumpur - Chongqing Flights  Norse Operates Non-Stop Charter Flight from Oslo to Darwin, Australia  Wyndham Reports Record H1 Growth in Asia Pacific  LOT Polish Airlines Takes Delivery of First Embraer E195-E2  Vietnam Airlines Takes Delivery of Fifth Boeing 787-10 Aircraft  Marriott Expands Executive Apartments Brand to Penang, Malaysia  AirAsia Group Expands Fleet with Four Airbus A321neo Aircraft  IATA Reports Latest Airline Passenger Traffic Data  China Airlines Signs SAF-Related MOU with Morrison Express  Fairfield by Marriott Hotel Opens in Terengganu, Malaysia  IATA Reports Latest Global Air Cargo Data  Marriott Opens Fifth Autograph Collection Hotel in Japan  Matthew Smith to Succeed Monique Arnoux as CEO of Destination Asia  American Airlines Renews Subscription to Prism  IndiGo to Increase Domestic Connectivity from Hyderabad and Ahmedabad  Shanghai Pudong Airport Installs 52 Kiosks and 14 Self-Service Bag Drops from SITA  Hong Kong Airport Handled 4.3 Million Passengers and 29,590 Flight Movements in June  Croatia Airlines Takes Delivery of First Airbus A220  Ryanair to Implement Boeing's Jeppesen FliteDeck Pro 5.0 EFB  Asia Pacific Airlines Carried 28.9 Million International Passengers in June  Singapore Changi Airport Reports Q2 2024 Traffic  Cat Wu Returns to Singapore as Executive Director of Revenue for Two Hotels  Langham Appoints Jack Xiao as Senior Vice President of Operations - China  NATO Selects Sikorsky X2 Rotorcraft for Integrated Platform Concept Study  Malaysia Airlines Expands Retailing Strategy with NDC Content on Travelport  Air Tahiti Orders Four ATR 72-600 Aircraft  AirAsia Airlines Implement Flight Tracking and Monitoring Solution from SITA  One Air to Expand Fleet with Third Boeing 747-400 Freighter  FCM Travel Expands Cytric Distribution Agreement with Amadeus  Cathay Pacific Expands 1 Ticket, 1 Tree Initiative to Include Cargo  Japan Airlines Confirms Order for 20 Airbus A350-900s and 11 A321neos  Embraer E190 Freighter Receives ANAC Type Certification  Libya's Berniq Airways Orders Six A320neo Family Aircraft  Qatar Airways Adds 20 Boeing 777-9 to Order Book  Accor Signs Raffles Hotel in Tokyo, Japan  Thai AirAsia to Launch Bangkok - Hyderabad and Phuket - Siem Reap Flights  Courtyard by Marriott Hotel Opens in Sapporo, Japan  Qatar Airways Unveils Qsuite Next Gen at Farnborough Airshow 2024  British Airways Increases Number of Funded Places in Speedbird Pilot Academy  Mandarin Oriental Signs Hotel and Residences in Bali, Indonesia  Minor Hotels Signs Dual-Branded Property in Yining, China  Korean Air Takes Delivery of First Boeing 787-10 Dreamliner  Two Senior Promotions at IHG Asia Pacific  Airbus A321XLR Powered by CFM LEAP-1A Engines Receives EASA Type Certification  Thai AirAsia X to Relocate All Flight Operations to Don Mueang Airport in Bangkok  New Dusit Thani Bangkok Hotel to Open 27 September 2024  CWT Upgrades Airfare Optimization Service with AI and Machine Learning  Small Luxury Hotels of the World Returns to India with MRS Group Partnership  SATS and SF Group Sign MOU to Expand Global Footprint  Thai AirAsia to Launch Don Mueang - Lampang Flights  Hong Kong Welcomed 3.13 Million Visitor Arrivals in June 2024  China Airlines Launches Direct Flights Between Taipei and Seattle, USA  London Heathrow Airport Expands Partnership with SITA  bp Partners Audi Formula 1 Team  Qantas Launches Non-Stop Flights Between Perth and Paris, France  SITA Reports Record Results; Future of Air Travel Interview with Sumesh Patel, President, SITA Asia Pacific  Miss International Queen 2024 - Video Interview with MD of Tiffany's Show Pattaya  High-Speed Fun in Denmark! HD Video Interview with Aarhus Sea Rangers  16 Exclusive HD Video Interviews from Routes Europe 2024 in Aarhus, Denmark  9 Exclusive HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia  9 Exclusive Video Interviews with VIPs at ASEAN Tourism Forum 2024 in Vientiane, Laos  8 NTO Press Conferences from the ASEAN Tourism Forum 2024 in Vientiane, Laos  13 Exclusive HD Video Interviews from World Travel Market 2023 in London, England  5 Exclusive HD Video Interviews from APG World Connect 2023 in Monaco, France  15 Exclusive HD Video Interviews from Routes World 2023 in Istanbul, TĂĽrkiye  Electric Airport Taxis at Almaty Airport in Kazakhstan - Video Interview with Co-Founder  Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand  Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants  Living With One Eye - Six Years On by Steven Howard  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2024 TravelNewsAsia.com