IATA Reports Sustainable Aviation Fuel to Represent Only 0.8% of Aviation Fuel Use by 2026

The International Air Transport Association (IATA) has reported that the production of Sustainable Aviation Fuel (SAF) is significantly lagging behind demand, projecting that by 2026, only 0.8% of the required supply will be met. This situation poses a substantial financial challenge for airlines, which are expected to incur costs totaling $4.3 billion this year due to the reliance on SAF.

The current low levels of SAF production are largely attributed to inadequate policy support and investment in the sector. Experts in aviation and environmental policy have raised concerns that overly ambitious regulatory mandates, particularly those regarding the adoption of electro-fuel SAF (e-SAF), could lead to higher fuel prices. Additionally, they caution that such mandates may divert investment away from genuine initiatives aimed at reducing carbon emissions in aviation.

SAF is considered essential for the aviation industry’s efforts to decarbonize and meet climate goals, including the International Civil Aviation Organizations (ICAO) commitment to reaching net-zero emissions by 2050. As of now, the majority of airlines are exploring various alternatives and strategies to increase SAF production and boost the sustainability of air travel, but concerted policy measures and investment are needed to drive meaningful progress in this area.