The all-out push for more sustainable transport has led to worthy action by the government. The aviation sector is no different and the European Union has agreed to a binding mandate requiring the use of sustainable aviation fuel (SAF). However, many airlines have questioned the EU’s direction on the matter, including the head of the International Air Transport Association.
According to Reuters, At the annual meeting of the global aviation trade association, Director General Willie Walsh said: “I think it is fair to describe the EU as an anti-aviation country, while other regions of the world. very positive and supportive of aviation.” Earlier this year, the European Union required fuel suppliers to ensure that two percent of fuel available at EU airports is SAF by 2025. The required percentage will increase to six percent in 2030, 20 percent in 2035 and finally 70 percent in 2050.
The aviation industry is concerned that EU regulations will distort the market as the rules will not apply to flights into Europe. Carriers will be encouraged to purchase SAF in Europe to meet requirements and use conventional fuel elsewhere to save money.
Walsh added, “Just as location makes no difference in the impact of CO2 emissions, it also does not affect where the SAF is upgraded and used. A global approach to applying for and claiming SAF credits will help facilitate economies of scale in SAF production.”
SAF is at least twice the cost of conventional fuel. Airlines would prefer it if sustainable production could be expanded at a lower cost and if they didn’t have to transport financial burden of expansion. The US government has followed this path. The US Department of Energy currently has a tax credit of $1.25 for SAF manufacturers to subsidize fuel costs for airlines. While there should be a global approach to SAF, it should not be done at the expense of the average taxpayer.
