IATA Warns of Sustainable Aviation Fuel Shortage and Calls for Government Incentives

Tashkent, Uzbekistan (UzDaily.com) — Sustainable aviation fuel (SAF) is becoming a key element in the aviation sector’s strategy to achieve net-zero CO2 emissions by 2050.

According to IATA leaders Willie Walsh and Mary Owens Thomsen, SAF could account for up to two-thirds of the required emissions reductions. However, current fuel production levels remain far below what is needed.

“We are disappointed by the pace of SAF production,” emphasized IATA Director General Willie Walsh. “At present, the target of 5% SAF usage by 2030 is unlikely to be met. Focus must be placed on stimulating production, because the shortage is not on the demand side, but on the supply side. Airlines have committed to purchasing fuel, showing that demand exists, but production is lagging.”

The situation in Europe and the UK is particularly concerning, where mandates to include 2% SAF in fuel blends have driven up jet fuel prices but have not significantly increased production.

“The money that could be spent on purchasing SAF is effectively boosting fuel suppliers’ profits — this is unacceptable,” Walsh noted.

IATA Senior Vice President for Sustainability and Chief Economist Mary Owens Thomsen added that there is a significant gap between the expected returns from traditional oil companies and renewable energy projects.

“In the US, some SAF projects have yielded margins over 20%, whereas renewable energy projects generally achieve about 5%. Government support should focus on renewable energy to scale up production of low-carbon fuels, including SAF,” she said.

IATA emphasizes that aviation must have priority access to feedstocks for SAF production. Walsh pointed out that electrification or hybrid technologies only cover short-haul routes, while around 80% of emissions come from flights over 1,500 kilometers. Even the most efficient modern aircraft still rely on liquid fuel, and their operational lifespan can reach 20–25 years.

Thomsen stressed that there is no shortage of feedstock for SAF production — the main obstacles are technological maturity and commercial readiness. “Without accelerating technology deployment through incentives, even available feedstocks will not translate into the necessary production capacity,” she explained.

Regarding potential adjustments to the net-zero targets amid political instability and climate skepticism, Walsh noted that despite challenges and high transition costs, the industry remains committed to its long-term goals. “The technical feasibility of SAF is resolved; now the focus must be on making it commercially viable for the industry,” he said.

Overall, IATA experts urge governments to actively incentivize SAF production, direct support toward renewable energy rather than the traditional oil sector, and ensure fair access for aviation to feedstocks.

Only by taking these measures can the aviation industry implement its carbon reduction strategy and ensure a sustainable future for air transport.