Green Jet Fuel Shortage Risks Higher Airfares
Many governments are investing in sustainable-aviation fuel, but given the shortages, net-zero targets will be tough to meet.
A lack of sustainable-aviation fuel (SAF) could push up the cost of flying and limit travel options for consumers, the World Travel and Tourism Council warned on Thursday.
The group said in a report that the current production of SAF makes up just 0.3% of global jet fuel use, totaling about 1.25 billion litres.
But to meet airline net-zero targets and comply with emerging government rules, the industry will need four times that amount, or more than 450 billion litres.
Several countries are already rolling out SAF polices that require airlines to use it in their jet-fuel mix.
China will require airlines to use a 2% SAF blend by 2025, rising to 15% by 2030. The EU will start with a 2% blend in 2025 and increase it to 70% by 2050.
Similar rules are in place in the UK, Sweden, France, Norway, Brazil and Japan, while discussions are underway in India, Turkey, and Australia.
Could SAF Drive up Travel Costs
WTTC warned that SAF prices could be up to 10 times higher than conventional jet fuel, due to high production costs, and a lack of infrastructure and feedstock. It said this could drive up air fares and discourage travel.
SAF is typically made from sources such as cooking oil, animal fats, plant oils, municipal waste, agricultural residues. and forestry waste.
'Sustainable fuel is the single biggest game changer for travel and tourism, but right now, supply falls dangerously short of demand,' said Julia Simpson, WTTC president and CEO. 'Every hotel, tour operator, travel agency, cruise line and airline has a role to play.'
She added: 'Sustainable fuel is not just an environmental necessity. It's a business imperative. Governments must incentivize SAF production, not just set targets.'
Many governments say they are investing in SAF. The European Union for example said it will publish its plan to overcome market challenges and a lack of investment later this year.
The aviation sector has repeatedly raised concerns about the lack of progress on SAF. But the fuel industry has rejected these claims.
Fuels Europe, which represents major oil and gas companies and fuel producers, said its members are on track to meet the mandates.
'We reject claims suggesting a lack of sustainable-aviation fuel,' a Fuels Europe spokesperson told Skift. "SAF output has grown tenfold in just two years, prices are falling, and new capacity is coming online, despite unclear policies and investment hurdles,' the spokesperson said.
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Skift's in-depth reporting on climate issues is made possible through the financial support of Intrepid Travel. This backing allows Skift to bring you high-quality journalism on one of the most important topics facing our planet today. Intrepid is not involved in any decisions made by Skift's editorial team.
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