Although aviation presently accounts for a modest 2.5% of global CO2 emissions, there is growing concern within the industry that its current rate of decarbonisation, compared to other sectors, may result in a substantial increase in its proportion of global emissions by 2050. This concern is rooted in the inherent challenges of reducing emissions within the “hard to abate” aviation sector, which could potentially cause it to account for up to 15% of global emissions by 2050 according to some projections.
Sustainable Aviation Fuels (“SAF”) represent the most promising opportunity for the aviation sector to achieve rapid emissions reductions, with the potential to decrease emissions by 65% by 2050, according to the International Air Transport Association (“IATA”). This is particularly critical given that alternative fuels, such as hydrogen and electric power, are not projected to reach sufficient maturity within this timeframe. SAF provides a feasible solution, as it can be blended with conventional aviation fuels without necessitating significant infrastructure investments. Consequently, various regional authorities, including the European Union, have set ambitious targets; the EU, for instance, aims for SAF to constitute 70% of total jet fuel consumption by 2050.
Meeting these targets is crucial for the aviation sector, not only to meet the growing demand for air travel, but also to achieve global decarbonisation targets. Given the expected surge in demand for SAF production, it is imperative for all stakeholders in the aviation industry, including policy makers, fuel producers, airlines and investors, to collaborate and finance the development and scaling of SAF technologies. This collective effort will be crucial to ensure the sustainable growth of the aviation sector and its contribution to global emission reduction targets.
In this article, our Eight International team examines the key factors driving the growing demand for SAF, the technological and regulatory challenges associated with its widespread adoption, the opportunities that will arise for investors, and the key measures to ensure the viability of a SAF project.
Enjoy the read: Sustainable Aviation Fuel
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