The International Air Transport Association has warned that sustainable aviation fuel production is on track for another underwhelming year, with output expected to reach just 2.4 million tonnes in 2026, covering a mere 0.8% of global aviation fuel demand at a cost of $4.3 billion to airlines.
IATA Director General Willie Walsh called the figures a disappointment, noting that five years after the industry committed to achieving net zero by 2050, progress remains far behind where it needs to be. He pointed to poorly sequenced government policies and a lack of engagement from oil companies as key obstacles, warning that the path to meeting 65% of fuel needs through SAF by mid-century is becoming harder to navigate with each passing year.
Walsh also argued that the current global energy crisis should be pushing governments to accelerate renewables development, including SAF, given the opportunity to build energy independence and create jobs alongside climate benefits. So far, he said, that urgency has not translated into the incentives needed to build a viable market.
To drive meaningful scale-up, IATA is pressing for action on four fronts: expanding renewable energy supply to support production, ensuring open access to fuel infrastructure including pipelines and airport systems, strengthening policy frameworks with production incentives that reduce investor risk ahead of any mandates, and enabling a truly global SAF market through commercially viable pricing.
Central to that last point is the adoption of a book-and-claim system, which IATA says would allow airlines and producers anywhere in the world to participate in the SAF market regardless of location, supported by harmonised international standards to ensure fair competition and long-term regulatory certainty.
News Source: Emirates News Agency
