Aviation Industry's Progress on Sustainable Aviation Fuel

By Joanna Plucinska and Emma Farge

GENEVA (Reuters) – The aviation industry isn't moving fast enough to reach its targets for producing and using sustainable aviation fuel (SAF), said Willie Walsh, head of airline trade body IATA, on Tuesday, as it aims for net-zero emissions by 2050.

"We're not making as much progress as we'd hoped for and we're certainly not making as much progress as we need," Walsh stated at an IATA media day in Geneva.

Currently, sustainable aviation fuel constitutes only about 1% of the world's jet fuel usage. Experts emphasize that the production rate of this green fuel must accelerate for the sector to meet its emissions goals.

Walsh highlighted a lack of biorefineries under construction, which are essential for producing green jet fuel. Many of these facilities require significant capital expenditure to build.

He noted that Europe is falling behind the United States in creating incentives that could enhance this investment.

The U.S. 2022 Inflation Reduction Act (IRA) includes hundreds of billions of dollars in subsidies for clean energy and is considered outgoing President Joe Biden's key law in the fight against climate change.

Walsh expressed uncertainty about the incoming administration of President-elect Donald Trump and its stance on the IRA and its effects on ongoing SAF production. "There was quite a lot of progress in the first Trump administration in this area as well. So I don't think this is a black and white issue," he explained to reporters.