Unlocking Canada’s Sustainable Aviation Potential Through Policy Vision

The path to a climate-resilient aviation future is no longer a theoretical conversation — it is a policy imperative. Aviation stakeholders across Canada and globally are clear: the key to unlocking low-emissions air travel lies in large-scale adoption of sustainable aviation fuels. But to achieve that, an enabling environment must first take shape.

Beyond Ambition: Why Sustainable Aviation Fuel Matters

Aviation has already demonstrated collective resolve, being among the first global industries to commit to net-zero emissions by 2050. The sector’s primary lever to reach this target is sustainable aviation fuel (SAF), expected to contribute roughly two-thirds of the required emissions reductions according to the International Air Transport Association (IATA).

Yet progress is falling short. In 2024, global SAF production clocked in at just 1.3 billion litres — well under the projected target of 1.9 billion litres. The issue is not capability, but coherence. Mixed signals from governments and continued support for fossil fuels have slowed momentum.

This challenge represents a hidden opportunity: policy alignment can become the catalyst for exponential growth.

SAF Economics: A Business Case Hiding in Plain Sight

Canada holds strategic advantages in SAF development. Rich feedstock sources — from canola and used cooking oils to forestry residuals and agricultural waste — are already available across provinces. These inputs can be transformed into low-carbon fuels with lifecycle emissions reductions of up to 80 percent.

While SAF remains expensive — three to ten times the cost of conventional jet fuel — the gap can be bridged through targeted incentives. Stakeholders agree that economic viability is within reach if producers, distributors, and airlines receive coordinated support.

The missing link is policy foresight that balances environmental goals with long-term market health. Stakeholder-driven coalitions like the Canadian Council for Sustainable Aviation Fuels continue to advocate for a framework that supports scaling, innovation, and regional integration.

Airports Taking Initiative: Lessons from Vancouver

Canada’s airports are already acting as laboratories for decarbonization. Vancouver International Airport (YVR), for instance, has gone beyond carbon neutrality and is committed to achieving net-zero operational emissions by 2030.

Investments in electric and hydrogen-powered vehicles, renewable natural gas, and a geothermal exchange plant mark a systemic shift in how large-scale facilities can be powered. What is most notable is not just the technology, but the clear roadmap YVR has built — including a $135 million investment strategy through 2030.

YVR is also bringing SAF into the fold, working with provincial partners to incentivize adoption through low carbon jet fuel programs. This airport-led approach showcases how infrastructure players can create demand signals even before national mandates are in place.

Early Wins in Domestic SAF Production

While most SAF used in Canada has been imported, 2024 marked a quiet but important milestone. Parkland’s Burnaby refinery produced Canada’s first batch of domestically refined SAF, using existing biofuel lines. Though small in volume, the move demonstrated technical feasibility and commercial interest, with Air Canada purchasing the output.

What stands out in Parkland’s case is the halted ambition. Plans for full-scale renewable diesel production were shelved due to a lack of financial viability — a problem directly tied to absent policy support. This shows that the next phase is not about invention, but investment.

Collaborative Momentum: Industry Shows Readiness

Across the country, carriers are stepping up. AirSprint has committed to 100 percent carbon offsetting and aims for 10 percent SAF use by 2030. Porter Airlines continues to evolve its emissions strategy through efficient aircraft and operational innovation. Air Canada is aligning its climate targets with government roadmaps and has actively sourced both international and domestic SAF.

Each of these moves signals a readiness within industry to transition — provided that enabling conditions exist. The emerging consensus is that incentives should not merely stimulate supply but also reward demand-side participation, including airports and carriers who take early action.

Scaling for Impact: From Regional Promise to National Strategy

Canada is well-positioned to build a SAF ecosystem that is both competitive and resilient. The resource base is strong, and the technical capabilities are proven. What remains is a nationally harmonized framework that connects feedstock availability, production capacity, and downstream adoption.

Several countries are moving swiftly. The U.S., for example, has dedicated SAF production lines supported by the Inflation Reduction Act. While Canada need not replicate the scale, a bold yet practical approach tailored to local conditions can yield similar momentum.

Provincial flexibility within a national framework could enable tailored incentives, encourage innovation hubs, and support workforce transitions — particularly in regions with agricultural and forestry industries.

A Strategic Question for Policymakers

One of the most compelling insights comes from a seemingly simple reflection: Should Canada focus on meeting 2030 SAF targets at all costs, or lay down the infrastructure and market conditions for rapid scaling beyond that date?

It is a question of trajectory, not just targets. Short-term metrics must not overshadow the need for systemic durability. For meaningful climate action in aviation, the investment timeline must align with innovation cycles and production realities.

Conclusion: Policy as the Pivot

The path to a sustainable aviation future in Canada does not require reinventing the wheel. It requires putting the wheels in motion. Stakeholders across aviation, infrastructure, and energy are demonstrating intent and capacity. The private sector is building case studies. The technologies exist. What remains is a strategic policy pivot — one that connects Canada’s natural advantages with global climate ambitions.

This is more than an environmental decision; it is an economic opportunity. Policy can either be the friction point or the flywheel. In the aviation sector’s journey to net-zero, choosing the latter may well define Canada’s legacy in sustainable transportation.

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