Policymakers need to learn from failure and work with the airline industry to design incentives that will work to boost sustainable aviation fuels (SAF) output, according to Willie Walsh, Director General of industry body The International Air Transport Association.
SAF production growth is projected to slow and reach 2.4 Mt in 2026, at a time when production needs to scale up to meet emissions targets.
“SAF production growth fell short of expectations as poorly designed mandates stalled momentum in the fledgling SAF industry,” said Walsh. “If the goal of SAF mandates was to slow progress and increase prices, policymakers knocked it out of the park.”
SAF production in 2025 represents only 0.6% of total jet fuel consumption. At current price levels, the SAF premium translates into an additional $3.6bn in fuel costs for the industry this year.
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