Airlines and Energy Firms Clash Over Scarce Sustainable Fuel at Dubai Summit

At the International Air Transport Association (IATA) summit in Dubai, airlines and energy firms found themselves at odds over the limited availability of Sustainable Aviation Fuels (SAF). The aviation industry, which aims to achieve net-zero emissions by 2050, currently sees SAF meeting only 0.5% of its fuel needs.

IATA Director General Willie Walsh criticized energy companies for not investing enough in SAF development. He stated, "The fuel companies who produce the problem ... we need to see those companies like Total investing significant sums of money in the development of Sustainable Aviation Fuel. That's the reality of where we are."

In response, Louise Tricoire, Senior Vice-President of TotalEnergies' aviation and marine business, defended the company's efforts. "Thank you for raising our excellent results... So I don't agree that we don't do our part with SAF; we are doing our part," she said.

Why this matters: The aviation industry's transition to sustainable fuels has significant implications for the environment and the global effort to reduce carbon emissions. If the industry fails to meet its net-zero goals, it could lead to increased greenhouse gas emissions and contribute to climate change.

The summit highlighted several challenges facing the aviation industry in its transition to SAF. These include the high cost of SAF, which is three times more expensive than kerosene, and the competition with other industries for limited renewable fuel capacity. Airlines argue that more government support is needed to facilitate this transition.

Governments have set an interim target of reducing emissions by 5% through the use of low-carbon fuels by 2030. However, IATA has not set its own interim target because of the lack of widespread government policies. This has led to questions about whether the aviation industry can meet its 2050 net-zero goal.

SAF production is expected to triple in 2024, reaching 1.9 billion liters, which would account for 0.53% of aviation's fuel needs. Despite this increase, the industry faces significant challenges. *"At the moment, we've got a long path ahead, and it's difficult, and it'll be expensive, but our main goal is to try and get the amount of SAF into the aviation industry at the levels that everybody wants,"* said Tim Clark, president of Emirates.

Environmental groups argue that the aviation industry's growth, with predicted revenue of almost $1 trillion in 2024, makes it harder to meet emission targets. The industry is also struggling to cope with post-COVID demand while transitioning to SAF, a challenge likened by Qantas Chief Sustainability Officer Andrew Parker to *"heart surgery while running a marathon."*

The IATA summit concluded with a call for more practical and flexible approaches to achieving net-zero goals. Willie Walsh emphasized the need for policies that could be reassessed and adjusted if they do not produce the desired results. The next annual meeting will be held in Delhi, India, in 2024.

The aviation industry continues to face a complex path towards sustainability, balancing the need for growth with the imperative to reduce emissions.

Key Takeaways

• Airlines and energy firms disagree on Sustainable Aviation Fuel (SAF) development.
• SAF currently meets only 0.5% of aviation's fuel needs, far from 2050 net-zero goal.
• High cost and limited renewable fuel capacity hinder SAF adoption.
• Gov't support and flexible policies are needed to achieve net-zero emissions.
• Aviation industry growth and post-COVID demand complicate emission reduction efforts.