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IATA criticizes Europe's SAF strategy

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Pilotcenter.net

Pilotcenter.net News has reported a significant development in the aviation industry, as the International Air Transport Association (IATA) announced that the production of Sustainable Aviation Fuel (SAF) is set to double to 2 million tonnes by 2025. Despite this growth, SAF will only account for approximately 0.7 percent of total airline fuel consumption globally.

IATA's Director General, Willie Walsh, commended this progress as a positive step forward but emphasized the substantial costs associated with SAF production. The estimated $4.4 billion required to produce this amount of SAF is a significant addition to the global fuel expenses. Walsh stressed the urgent need for the industry to accelerate efforts to expand production and lower costs. He stated, "The pace of progress must speed up [...] both in ramping up production and in finding ways to bring costs down."

Currently, a significant portion of the available SAF supply is being directed to Europe to meet new mandates imposed by the EU and the UK as of 2025. However, the implementation of these rules has resulted in a sharp increase in fuel prices. Airlines are now facing doubled expenses for SAF due to additional fees imposed by producers and suppliers. To comply with the regulations in Europe, airlines are expected to spend around $2.9 billion, including $1.7 billion in extra compliance fees.

Walsh criticized this outcome as "unreasonable" and highlighted the challenges of implementing mandates without sufficient market conditions and safeguards in place. He emphasized that raising the cost of the energy transition, which is already projected to reach $4.7 trillion, should not be the intended consequence of decarbonization policies. Walsh urged Europe to reassess its approach and seek alternative solutions to address these challenges.

In conclusion, the importance of sustainable aviation practices is evident, but the industry must overcome the hurdles of high costs and limited supply to achieve meaningful progress in reducing carbon emissions.

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