NEW DELHI — Sustainable aviation fuel (SAF) production will double this year, according to a newly released IATA estimate.
Still, that will amount to just 0.7% of aviation fuel needs in 2025, the airline trade group says.
Overall, IATA expects approximately 660 million gallons of SAF to be produced globally this year. Approximately 60% of that supply will be required for airlines in the U.K. and EU to meet SAF mandates that went into effect this year.
Under both mandates, SAF must account for 2% of fuel supply this year.
'A great green scam'
At its annual meeting here on Sunday, IATA restated its opposition to those mandates, saying that they have doubled the cost of SAF in Europe due to compliance fees charged by SAF producers and suppliers. Those extra costs are expected to amount to $1.7 billion this year, the trade group said.
IATA director general Willie Walsh called the mandate "a great green scam" during his opening address at the IATA AGM.
IATA has longed advocated for government incentive programs to spur SAF investment, rather than mandates. The airline group said governments subsidize fossil fuel production to the tune of $1 trillion per year and is advocating for a portion of such funds to be re-allocated to SAF.
Airlines have set goal of net-zero emissions
Airlines globally have committed to achieving net-zero emissions by 2050, with 65% of the reductions to come from a ramp-up of SAF usage. IATA estimates the SAF transition will cost $4.7 trillion. Despite the enormous price tag, the trade group's chief economist, Marie Owens Thomsen, said it is achievable during a June 1 press briefing.
IATA says there is adequate SAF feedstock to meet the 2050 commitment. But it says governments aren't making the required commitments.
"The thing that's really missing is the courage and will to take on vested interest," Thomsen said.