Iata (International Air Transport Association) recognized this Tuesday (9) that the 10% target set for the use of SAF (Sustainable Aviation Fuel) in the sector will be difficult to achieve by 2030. The problem is due to the low global production of this fuel, which pollutes up to 80% less than kerosene and is considered essential to achieve decarbonization in the years to come.
The association’s chief executive, Willie Walsh, blamed the lag in the development of green fuels on the indulgence of governments around the world. He says regulators are giving up on low production levels and allowing companies to charge predatory prices to airlines for the product.
“When we committed to net zero carbon by 2050, I said it would be extremely difficult, but what we face today is even bigger than expected. We are not progressing as expected in terms of production, despite strong demand for SAF,” Walsh told a news conference.
With production declining, airlines are relying exclusively on the few producers available in the industry today.
In Brazil, Petrobras announced last Friday (5) the first deliveries of sustainable fuel to the country, with a volume sufficient to supply approximately one day’s consumption at Rio de Janeiro airports.
In 2023, Raízen received ISCC Corsia Plus certification, which proves that the ethanol produced by the company at the Costa Pinto plant, in Piracicaba (SP), meets international requirements for the production of SAF.
Currently, less than 1% of fuel consumed in global aviation is SAF, according to IATA. The explanation comes at a price: while companies pay around $1,000 per ton for aviation kerosene, the value of SAF costs up to $3,000 per ton.
IATA, however, believes that the problem is not money, but a lack of interest in production and poor control by regulators of the quality of renewable fuels.
Without citing specific cases, Walsh said producers took advantage of SAF’s operational deficiencies and began charging abusive and artificial prices, making the decarbonization goal unachievable in the short term.
According to the director of Iata, regulatory changes in Europe, initiated last year, have been detrimental to the development of the SAF. Companies are now forced to mix a small percentage of fuel with kerosene and pay hefty fines for non-compliance.
As production is concentrated in the hands of a few companies, the cost of European SAF was even higher than the global average and producers took advantage of their position to “extract extra money” from the airline sector, according to Walsh.
The current scenario will even harm the achievement of intermediate objectives for the use of SAF worldwide, such as that designed by ICAO (International Civil Aviation Organization), which provided for at least 5% of SAF in the regular operation of companies by 2030.
Furthermore, the sector is also facing a serious supply chain crisis. IATA estimates that there is now a shortfall of more than 5,340 aircraft that should be in service but have not been delivered.
As a result, airline operating costs have exceeded $11 billion this year. This value reflects the additional expenses associated with higher fuel consumption – as companies need to keep their older aircraft in service – in addition to increased maintenance and retention costs for parts currently subject to replacement.
“It surprises me that regulators, particularly those in the European Union, stand idly by while fuel suppliers abuse their position by dramatically raising prices under the false pretense of compliance fees while protecting their profits,” Walsh said.
The IATA director general also complained about tax policy in the airline sector, especially when it is applied under the argument of environmental reasons.
“Taxation does not reduce CO2, but it reduces the number of people who can fly. Flights continue to operate, but with fewer people on board. I am encouraged that some governments recognize that taxation for environmental reasons causes economic damage and decide to cancel the taxes applied,” analyzed Walsh.
The journalist traveled at the invitation of IATA
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