Daijiworld Media Network - New Delhi
New Delhi, Jun 7:Global production of Sustainable Aviation Fuel (SAF) is projected to remain significantly below the levels needed for the aviation sector’s decarbonisation targets, according to new estimates from the International Air Transport Association (IATA).
The industry body expects SAF output to reach only 2.4 million tonnes in 2026, which would make up just 0.8 per cent of total global aviation fuel consumption. The figure underscores the widening gap between current production capacity and the industry’s long-term net-zero ambitions.
Despite limited supply, airlines are projected to spend around $4.3 billion on SAF in 2025. However, IATA notes that production growth continues to fall short of what is required to meet climate commitments made by the aviation sector, which aims for net-zero emissions by 2050.
Willie Walsh, IATA’s Senior Vice President for Sustainability and Chief Economist, said progress over the past five years has been underwhelming. He pointed out that SAF is expected to account for less than 1 per cent of total airline fuel use in 2026, making it increasingly difficult to achieve the industry’s goal of covering about 65 per cent of future emissions reductions through SAF.
Walsh attributed the slow expansion to what he described as weak government policy frameworks and limited participation from major oil producers in scaling up alternative fuel output. He added that recent disruptions in global energy markets have not translated into stronger investment momentum for renewable aviation fuels.
To address these challenges, IATA has urged governments and industry stakeholders to take coordinated action. Its recommendations include expanding renewable energy supply chains, improving access to fuel infrastructure, strengthening financial incentives, and building a commercially viable global SAF market.
The association also emphasised the need for a global “book-and-claim” system, which would allow airlines and producers to trade SAF credits irrespective of physical location, alongside harmonised international standards to ensure fair competition and market consistency.