IATA Chief: Sustainable Aviation Fuel Prices to Stay High but Industry Remains Committed to Net-Zero Goals

Willie Walsh, the head of the International Air Transport Association (IATA), recently discussed the outlook for sustainable aviation fuel (SAF) prices and the aviation industry’s commitment to achieving net-zero emissions by 2050. Walsh’s insights were shared during a conference in Lisbon. Here are the key takeaways:

Walsh acknowledged that even with large-scale production, SAF prices are expected to remain higher than traditional kerosene. This reflects the current challenges associated with SAF production and affordability.

Industry’s Commitment to Sustainability
Despite the price disparity, Walsh expressed confidence in the aviation sector’s dedication to meeting its carbon emission reduction targets. He emphasized that the aviation industry is fully aware of the environmental challenges and is taking proactive measures to address them. According to Walsh, there is no alternative but to achieve these targets.

SAF, derived from renewable sources like waste oils, biomass, and synthetic fuels, plays a pivotal role in reducing aviation’s environmental footprint. However, its limited availability and higher cost pose significant barriers to widespread adoption.

To accelerate SAF production and make it more cost-effective, Walsh called for increased government support and incentives. He emphasized the importance of creating a harmonized global framework for SAF certification and taxation.

Walsh stressed the need for closer collaboration among airlines, fuel suppliers, airports, and regulators to drive the sustainable aviation agenda forward. Such cooperation can help overcome challenges and facilitate the transition to cleaner aviation.

IATA estimates that SAF could contribute up to 65% of the emissions reduction required for the aviation industry to achieve its net-zero emissions target by 2050. The remaining reductions would come from advancements in technology, operational efficiencies, and carbon offset initiatives.

Walsh concluded by highlighting the alignment of IATA’s members, including major global airlines, with the industry’s net-zero emissions objective. These airlines are actively implementing measures to reduce their environmental footprint and embrace sustainable practices.

While SAF prices may remain elevated compared to traditional fuels, the aviation industry remains resolute in its commitment to sustainability and the pursuit of net-zero emissions by 2050. Collaboration, government support, and innovation will be instrumental in overcoming the challenges associated with SAF adoption and achieving these ambitious environmental goals.

Sources: AirGuide Business airguide.info, msn.com, iata.org