In recent years, Sustainable Aviation Fuel (SAF) has emerged as a key player in the aviation industry’s efforts to reduce its carbon footprint. As noted in the International Air Transport Association’s (IATA) Net Zero Roadmap, aviation is one of the hardest sectors to decarbonize. However, with its contribution to 14 of the United Nations’ 17 Sustainable Development Goals (SDGs), including SDG 13 (“Take urgent action to combat climate change and its impacts”), the focus is clear: aviation must transform, and SAF is set to be at the heart of that transformation.
The Critical Role of SAF in Achieving Net Zero
IATA’s central scenario predicts that by 2050, SAF will make up 80-90% of aviation fuel, contributing to a 62% reduction in emissions. This ambitious target aligns with global climate objectives and has catalyzed action from both governments and the private sector across the globe. In the U.S., the 2021 “Sustainable Aviation Fuel Grand Challenge” seeks to cut lifecycle greenhouse gases by 50% and meet 100% of fuel demand by 2050. Meanwhile, the European Union and the UK have implemented SAF mandates, bolstering production and ensuring there’s a market for these cleaner alternatives.
Though SAF currently accounts for less than 0.1% of total airline fuel consumption, production is expected to double in 2024. The EU’s ReFuelEU initiative and the UK’s new SAF mandates are helping to drive this growth by ensuring supply and demand meet increasing sustainability goals.
Government Incentives and Mandates Driving SAF Growth
To meet these ambitious targets, incentives are key. The U.S. government continues to incentivize SAF production through tax credits and regulatory support, with bipartisan initiatives offering hope for further longevity. The Internal Revenue Service (IRS) has developed the 40BSAF-GREET model to calculate SAF-related tax credits based on lifecycle emissions reductions, making it easier for producers to claim credits and boosting investment in cleaner technologies. Similarly, Europe’s Emissions Trading Scheme provides up to €2 billion in financial incentives, ensuring that airlines adopt SAF in their operations.
The UK, with its recent confirmation of SAF mandates, has taken an innovative approach. From 2025 onwards, mandates will increase yearly, reaching 22% by 2040. The inclusion of new feedstock innovation requirements and the imposition of separate mandates for power-to-liquid (PtL) fuel shows a comprehensive strategy to ensure the long-term sustainability of SAF.
Addressing Lifecycle Emissions and Greenwashing Concerns
One of the most significant aspects of SAF development is ensuring transparency around lifecycle emissions. As regulations tighten, airlines are becoming increasingly accountable for proving how much their fuel contributes to emissions reductions across its entire production cycle. This focus on traceability is essential for both meeting regulatory requirements and preventing accusations of “greenwashing,” which have recently affected airlines in Europe.
At VURDHAAN, we understand the complexity of decarbonizing the aviation sector. As active participants in this transformative journey, we support organizations navigating the evolving SAF landscape. Through initiatives like CORSIA and EU ETS compliance, we help airlines meet emission reduction targets while embracing sustainable practices. Our expertise extends beyond compliance to providing strategic support, education, and implementation for organizations committed to making aviation greener.
The Road Ahead: Collaboration is Key
As the aviation industry continues to tackle its decarbonization challenges, the role of SAF is only set to grow. Governments, airlines, and producers must continue to work collaboratively to overcome barriers, including scaling production, ensuring feedstock availability, and meeting cost competitiveness. Research initiatives such as the U.S. Department of Energy’s ASCENT program, which funds research into alternative fuels, provide the foundation for continued innovation in SAF technologies.
By working together, stakeholders across the aviation ecosystem can help achieve the ambitious goal of net-zero emissions by 2050, with SAF leading the charge.
Conclusion
As the aviation industry faces increasing pressure to reduce emissions, SAF provides a viable and scalable solution. With government support, industry collaboration, and stringent safeguards against greenwashing, SAF is set to be a cornerstone of the sector’s decarbonization efforts. VURDHAAN, with its expertise in regulatory compliance and sustainable strategies, is committed to supporting aviation stakeholders in this green transition, ensuring a cleaner and more sustainable future for air travel.