Mandates for SAF blending without incentives will hurt airlines, says IATA official

Economic Times
Economic Times
2M ago
22 views
IATA officials stated that mandates for sustainable aviation fuel (SAF) blending without incentives could negatively impact airlines. This matters as India aims for 1% SAF blending by 2027, which could affect the aviation sector's growth.
Mandates for SAF blending without incentives will hurt airlines, says IATA official
A What happened
During a recent panel discussion at the India Sustainable Aviation Fuel Summit, a senior official from the International Air Transport Association (IATA) expressed concerns regarding the Indian government's plans to mandate blending sustainable aviation fuel (SAF) without providing incentives. The official warned that such mandates could have detrimental effects on airlines, which are crucial for connectivity and economic growth. India aims for 1% SAF blending by 2027, with targets of 2% by 2028 and 5% by 2030 for international flights. The IATA suggests that incentives should precede any mandates to foster SAF production. The Indian government is working on a SAF policy to reduce oil imports and create green jobs, leveraging the country's significant biomass resources. The discussion highlighted the importance of a multi-faceted approach to developing the SAF ecosystem, with officials open to suggestions for effective implementation.

Key insights

  • 1

    SAF blending targets: India aims for 1% SAF blending by 2027, increasing to 5% by 2030.

  • 2

    IATA's position: IATA advocates for incentives to boost SAF production before mandates.

  • 3

    Economic implications: Mandates without incentives could negatively impact airline operations and growth.

Takeaways

The IATA's warnings highlight the need for a balanced approach to SAF mandates, emphasizing the importance of incentives to support the aviation industry's transition to sustainable fuels.

Topics

Business & Markets Economy Climate & Environment Sustainability Energy

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