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Home Business & Economy

Global Aviation Faces Challenges in Scaling Sustainable Fuel Production

June 1, 2025
in Business & Economy
Reading Time: 3 mins read
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Aviation
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The International Air Transport Association (IATA) announced on Sunday that sustainable aviation fuel (SAF) production is projected to double in 2025, reaching 2 million tons.

However, this increase will account for just 0.7% of global airline fuel consumption, underscoring the aviation industry’s struggle to meet ambitious sustainability targets.

IATA, a leading industry body representing airlines worldwide, has repeatedly warned that the slow pace of SAF production threatens the sector’s goal of achieving net-zero carbon emissions by 2050.

SAF, derived from renewable sources like waste oil and biomass, is a cornerstone of this transition but remains significantly more expensive than conventional jet fuel.

According to IATA Director General Willie Walsh, the modest production increase will add $4.4 billion to the global aviation fuel bill in 2025.
“While the doubling of SAF production is a step forward, the pace must accelerate to meet both environmental goals and cost efficiencies,” Walsh said in a statement.

He stressed the need for faster progress in scaling production and reducing costs to make SAF a viable alternative.

The aviation sector’s 2021 commitment to net-zero emissions by 2050 hinges on a gradual shift to SAF, alongside improvements in fuel-efficient aircraft. However, airlines face multiple hurdles.

Limited SAF supplies have sparked tensions with energy companies, as demand outstrips availability. Additionally, airlines have criticized plane manufacturers Airbus and Boeing for delays in delivering next-generation, fuel-efficient jets, further complicating efforts to reduce emissions.

The challenges highlight a broader tension in the aviation industry: balancing environmental commitments with economic realities. With SAF production still in its infancy and costs high, airlines are grappling with how to scale up without passing excessive costs onto consumers.

As the aviation sector navigates these obstacles, stakeholders are calling for greater collaboration between airlines, energy providers, and manufacturers to drive technological advancements and secure a sustainable future for air travel.

WHAT YOU SHOULD KNOW

SAF is short for sustainable aviation fuel. It is an alternative fuel produced from non-petroleum sources like used cooking oil, algae, or agricultural waste, making it a more suitable alternative to conventional jet fuel.

The projected doubling of SAF production in 2025 offers a glimmer of hope for the aviation industry’s sustainability efforts, but the road to net-zero emissions by 2050 remains steep.

With SAF constituting less than 1% of fuel use and adding billions to costs, the industry must urgently address supply shortages, cost barriers, and delays in fuel-efficient aircraft delivery.

Stronger partnerships across airlines, energy providers, and manufacturers, coupled with robust policy support and investment, will be critical to accelerating SAF adoption and ensuring aviation’s environmental commitments are met without compromising affordability or accessibility.

Tags: IATASAFWILLIE WALSH
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