• According to IATA, the EU's SAF rules are well-intentioned but poorly executed.
• At present, SAF supply is very low, costs are high, and production is insufficient to meet the ReFuelEU Aviation targets.
• The environmental benefits are also being questioned, given concerns over transportation emissions and the use of palm oil.

The European Union's (EU) intent to increase the use of sustainable aviation fuel (SAF) has drawn flak from the International Air Transport Association (IATA).

SAF is a clean, environment-friendly alternative to traditional jet fuel, but the EU's current approach, according to IATA, is expensive, ineffective, and counterproductive.

Willie Walsh, IATA’s director-general, said if SAF has to be transported from far-flung regions, such as Asia, to Europe, it will increase the carbon footprint. He added, "Because you are clearly increasing the environmental impact of that fuel as a result of the transportation costs."

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IATA estimates that only 2 million metric tonnes of SAF will be produced in 2025, which amounts to merely 0.7% of what airlines will require. Although SAF is currently in short supply, the EU wants airlines to use a 6% SAF blend by 2030, according to its ReFuelEU Aviation policy.

"Mandating the use of a product that isn't available doesn't lead to any environmental benefit," Walsh said.

Fuel suppliers, who are required to produce SAF, are also raising the cost of regular jet fuel exorbitantly. Walsh said these prices are much higher than the actual cost of the limited SAF available.

He added that the EU is solely responsible for allowing a few fuel producers to create a monopoly in the market and drive up prices without delivering any environmental benefits.

Also Read: SK Energy, Cathay Ink Deal for 20,000 Tonnes of SAF

Meanwhile, Walsh also criticised the use of palm oil in SAF production.

He said the industry should be more careful about which palm oil sources are truly sustainable.

"I think you could argue there is sustainable palm oil and palm oil that wouldn't be considered sustainable, and in some parts of the world it's seen too black and white," he concluded.

Ends/

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Source: Reuters