New Delhi – The International Air Transport Association (IATA) announced that it expects Sustainable Aviation Fuel (SAF) production to reach 2 million tonnes (Mt) (2.5 billion liters) or 0.7% of airlines’ total fuel consumption in 2025.
“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs. And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate,” said Willie Walsh, IATA’s Director General.
>> In Other News: Ballard Announces 1.5 MW Fuel Cell Engine Order for Sierra Northern Railway
Most SAF is now heading toward Europe, where the EU and UK mandates kicked in on 1 January 2025. Unacceptably, the cost of SAF to airlines has now doubled in Europe because of compliance fees that SAF producers or suppliers are charging. For the expected one million tonnes of SAF that will be purchased to meet the European mandates in 2025, the expected cost at current market prices is $1.2 billion. Compliance fees are estimated to add an additional $1.7 billion on top of market prices—an amount that could have abated an additional 3.5 million tonnes of carbon emissions. Instead of promoting the use of SAF, Europe’s SAF mandates have made SAF five times more costly than conventional jet fuel.
“This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonization. Raising the cost of the energy transition that is already estimated to be a staggering $4.7 trillion should not be the aim or the result of decarbonization policies. Europe needs to realize that its approach is not working and find another way,” said Walsh.
To support the development of a global SAF market, IATA has worked on two initiatives:
IATA urges governments to focus on three areas:
India, one of the emerging economies on the world stage today, is the third-largest oil user after the US and China. India launched the Global Biofuels Alliance to position biofuels as a key to energy transition and economic growth. This includes a target for 2% SAF blending for international flights by 2028 with enabling policies such as guaranteed pricing, capital support for new projects, and technical standards. IATA will be working with the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) and Praj Industries Limited, to provide guidance on global best practices for life cycle assessment of the use of feedstocks in the country.
As the third-largest global civil aviation market, India can strengthen its leadership in biofuels with the accelerated adoption of SAF through progressive policies.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🪣 Shovels Hit the Ground on California’s First Carbon Storage Hub 🤝 CHARBONE Announces a Strategic Alliance with a Leading U.S. Industrial Gas Producer 📜 Gold Standard Approves M...
Inside This Issue 🧠 From Mars to AI: Fuel Cells Power $28B Boom 🏆 Svante Technologies Wins Global Award for Breakthrough Carbon Capture Innovation 🚧 California Resources Corporation Breaks Ground ...
Inside This Issue 💰 Where the $6.5 Trillion Goes: Carbon Tech Fights for Funding 🔋 Douglas PUD Commission Cuts Ribbon At Renewable Hydrogen Production Facility 🍁 Quinbrook Acquires First Canadian ...
Sustainable Jet Fuel Developer Moves Priority From SD to ND Amid Summit Pipeline Delays
Gevo Inc. Plans Sustainable Aviation Fuel Shift From South Dakota To North Dakota Amid Summit Carbon Pipeline Delays Gevo Inc., a Colorado-based developer of sustainable aviation fuel (SAF), annou...
CapturePoint’s CENLA Hub Project Advances On Louisiana’s Short List For Carbon Storage Permitting
CapturePoint Solutions LLC’s CENLA Hub Project Advances On Louisiana Department of Conservation and Energy (C&E) Short List For Carbon Storage Permitting ALLEN, Texas, Oct. 15, 2025 (GLOBE NEW...
Pacific Harbor Line Expands Sustainability Efforts With Remora Partnership
Anacostia Rail Holdings (ARH) is pleased to announce that its Pacific Harbor Line (PHL) subsidiary has entered into a development agreement with Remora, a Michigan-based climate technology startup ...
CATACARB® Wins Carbon Remover Award At Carbon Capture Canada 2025
CATACARB is proud to announce it has been awarded the Carbon Remover Award at Carbon Capture Canada (Canada's National Carbon Capture and Storage Event) held in Edmonton. The Carbon Remover Award r...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.