IATA points on supportive government policies to accelerate aviation decarbonisation

Sunday, November 26, 2023

As per the agreements reached at the Third Conference on Aviation Alternative Fuels (CAAF/3) convened by the International Civil Aviation Organization (ICAO) in Dubai, the International Air Transport Association (IATA) is anxiously awaiting government action to promote aviation’s decarbonisation.

CAAF/3 marked significant progress with critical agreements:

• Creating a global framework to encourage Sustainable Aviation Fuel (SAF) production globally, with the goal of reducing the carbon intensity of aviation fuel by 5% by 2030 compared to present fossil fuel consumption.
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• Recognising the disparities in capabilities among nations, the proposal includes measures like as capacity building and a “Finvest Hub” to ensure worldwide participation in the SAF market.

• Responding to the demand for a solution that allows airlines to credit the environmental advantages of SAF purchases against their decarbonisation commitments, driven by a solid accounting framework.

Willie Walsh, Director General of IATA, underlined the importance of promptly implementing comprehensive rules to harness the potential of a global SAF market and exponentially increase production.

Airlines’ demand for SAF, which is dedicated to attaining net-zero carbon emissions by 2050, greatly outstrips existing supply, which contributes for just 0.2% of jet fuel usage in 2023. They’ve sent out strong signals:

Purchasing all available SAF in 2022, incurring an additional cost of almost USD 500 million due to SAF’s high premium over jet fuel costs.

Airlines are investing in SAF projects by vertically integrating into the supply chain and obtaining USD 45 billion in advance purchase agreements, much beyond current SAF availability.

Walsh emphasised the importance of quick government action, recommending policies that promote SAF production internationally.

IATA’s call to governments includes:

• SAF manufacturers can benefit from local feedstock availability.
• Adopting measures that encourage output without penalizing it.
• Prioritizing renewable energy sources and ensuring equitable distribution of SAF among them.
• Emphasizing the need of collaborative responsibility in reforming aviation to achieve net-zero carbon emissions.

IATA’s Senior Vice President Sustainability and Chief Economist, Marie Owens Thomsen, emphasized that achieving decarbonisation requires collaborative efforts from the whole value chain and governments. She emphasized the importance of government assistance in stimulating private investment and the need for coordinated, concentrated efforts to achieve the net-zero 2050 objective.

Source: IATA

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• IATA looks forward to accelerating aviation’s decarbonization