Sustainable Aviation Fuels
Policy Status Report
Case-Specific Policy Analysis

Sustainable Aviation Fuels
Policy Status Report
Case-Specific Policy Analysis

The International Transport ForumThe International Transport Forum is an intergovernmental organisation with 66 member countries. It acts
as a think tank for transport policy and organises the Annual Summit of transport ministers. ITF is the only
global body that covers all transport modes. The ITF is politically autonomous and administratively
integrated with the OECD.
The ITF works for transport policies that improve peoples’ lives. Our mission is to foster a deeper
understanding of the role of transport in economic growth, environmental sustainability and social
inclusion and to raise the public profile of transport policy.
The ITF organises global dialogue for better transport. We act as a platform for discussion and prenegotiation of policy issues across all transport modes. We analyse trends, share knowledge and promoteexchange among transport decision makers and civil society. The ITF’s Annual Summit is the world’s largest
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The Members of the Forum are: Albania, Armenia, Argentina, Australia, Austria, Azerbaijan, Belarus,
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Greece, Hungary, Iceland, India, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Latvia, Liechtenstein,
Lithuania, Luxembourg, Malta, Mexico, Republic of Moldova, Mongolia, Montenegro, Morocco,
the Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania,
Russian Federation, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Tunisia, Türkiye,
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Case-Specific Policy Analysis Reports
The ITF’s Case-Specific Policy Analysis series presents topical studies on specific issues carried out by the
ITF in agreement with local institutions. Any findings, interpretations and conclusions expressed herein arethose of the authors and do not necessarily reflect the views of the International Transport Forum or theOECD. Neither the OECD, ITF nor the authors guarantee the accuracy of any data or other information
contained in this publication and accept no responsibility whatsoever for any consequence of their use.
This work is published under the responsibility of the Secretary-General of the ITF. This document, as wellas any data and map included herein, are without prejudice to the status of or sovereignty over any
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Cite this work as: ITF (2023), “Sustainable Aviation Fuels: Policy Status Report”, International Transport
Forum Policy Papers, No. 116, OECD Publishing, Paris.

Acknowledgements
Till Bunsen of the International Transport Forum (ITF) wrote this report. It is based on original researchand exchanges at meetings of the Aviation Common Interest Group of the ITF Decarbonising Transport:
Driving Implementation Actions (DT Implement) project. This expert forum convened experts of
19 national governments and 14 companies on Sustainable Aviation Fuel (SAF) Policies met four times overthe course of 2021 and 2022. The countries are Argentina, Canada, Finland, France, Germany, India,
Indonesia, Japan, Korea, Mexico, Netherlands, Norway, Poland, Romania, Spain, Sweden, Türkiye, theUnited Kingdom and the United States. Participating companies include Airbus, Aramco, Avinor, Boeing,
BP, ExxonMobil, Iberdrola, Neste, Praj Industries, Rolls Royce, Safran, Shell and Siemens.
The ITF would like to thank the chairs of the Aviation Common Interest Group, Ingrid Cherfils (Swedish
Transport Agency) and Jan Petter Steinland (Norway Civil Aviation Authority), for steering its activities.
Thanks also go to its members for sharing insights from their respective markets and sectors, feeding into
policy recommendations considering various aspects and perspectives.
A shared vision for increasing SAF use is one outcome of the group. The ITF Secretariat and Norway
submitted the information paper A Policy Vision for Promoting the Scale-Up of Sustainable Aviation Fuels(SAFs) to the 41st ICAO Assembly. The information paper shares insights from the Aviation Common
Interest Groupon priorities for scaling up SAF, and this report's structure follows its recommendations.
Thanks go to the reviewers of the Information Paper: Ashan Edoo (Canada), César Velarde (ECAC),
Elisabeth Windisch (ITF), Ingrid Cherfils (Sweden), Jagoda Egeland (ITF), Jan Petter Steinland (Norway) and
José Ramón Fernández Sampedro (Spain).
The information paper can be found at: www.icao.int/Meetings/a41/Documents/WP/wp_504_en.pdf.
Hilary Gaboriau (ITF) co-ordinated the report's publication and Elisabeth Windisch (ITF) provided insightfulcomments on its contents.
The DT Implement project is part of the ITF’s wider Decarbonising Transport (DT) initiative. The DT initiative
is a key instrument to help governments and industries translate climate ambitions into actions. It unites
over 70 governments, organisations, institutions, foundations and companies. More information on the
DT Initiative is available at https://www.itf-oecd.org/decarbonising-transport.
Funding for this work was kindly provided by the European Union’s Horizon 2020 research and innovation
programme under grant agreement No. 101021600.

TABLE OF CONTENTS

Table of contents
Executive summary ........................................................................................................................ 8
How sustainable aviation fuels can decarbonise aviation .............................................................. 10
What are sustainable aviation fuels? ............................................................................................ 12
Existing sustainable aviation fuel deployment .............................................................................. 12
Sustainable aviation fuel production pathways ............................................................................. 14
Bioenergy-based pathways to produce sustainable aviation fuels................................................ 14
Producing sustainable aviation fuels from the power-to-liquid pathway...................................... 16
Invest in sustainable aviation fuel now to lower production costs for future use ........................... 17
Targeted policies can reduce costs and increase deployment ...................................................... 18
Embrace all sustainable production pathways and feedstock types that delivercredible emission reductions ........................................................................................................ 20
Choosing which sustainable aviation fuel types to prioritise for policy support ........................... 23
Expand existing sustainable aviation fuel policy frameworks to help aviation achieveinternational climate objectives.................................................................................................... 25
ICAO environmental frameworks embrace sustainable aviation fuels to reduce emissions ......... 25
Principle design elements of sustainable aviation fuel policies ..................................................... 26
Many markets look to sustainable aviation fuel to reduce emissions ........................................... 27
References ................................................................................................................................... 33

FiguresFigure 1. Change in activity, energy use and energy intensity of passenger airtransport, 2002-21 index change from 2002 ................................................................................. 11
Figure 2. Announced sustainable aviation fuel trades per year (million litres) ................................ 13
Figure 3. Sustainable aviation fuel production pathway groups ..................................................... 15
Figure 4. Default values for life-cycle CO2 emissions of CORSIA-eligible fuels ................................. 21
Figure 5. Life-cycle GHG emissions for e-kerosene, gCO2-eq/MJ .................................................... 22

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TABLE OF CONTENTS

TablesTable 1. Benefits and challenges of different sustainable aviation fuel pathways ........................... 23
Table 2. Policy designs deployed by selected sustainable aviation fuel programmes ...................... 28

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ABBREVIATIONS AND ACRONYMS

Abreviations and acronyms
ASTM

American Society for Testing and Materials

ATJ-SPK

Alcohol to jet synthetic paraffinic kerosene

CCU

Carbon capture and utilisation

CHJ

Catalytic hydrothermolysis jet fuelCO2

Carbon dioxide

CORSIA

Carbon Offsetting and Reduction Scheme for International Aviation

DAC

Direct air capture

EU

European Union

EV

Electric vehicle

FT

Fischer-Tropsch

FT-SKA

Synthesized kerosene with aromatics derived by alkylation of light aromatics from nonpetroleum sources

GHG

Greenhouse gas

H2

Hydrogen

HC-HEFA-SPK

Synthesized paraffinic kerosene from hydrocarbon – hydroprocessed esters and fatty
acids

HEFA

Synthesized paraffinic kerosene from hydroprocessed esters and fatty acids

IATA

International Air Transport Association

ICAO

International Civil Aviation Organisation

ILUC

Indirect land-use change

LCAF

lower-carbon aviation fuelLCFS

Low carbon fuel standard

LTAG

Long-term global aspirational goal

MSW

Municipal solid waste

PtL

Power-to-liquid

R&D

Research and development

RED

Renewable Energy Directive

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ABBREVIATIONS AND ACRONYMS

RTFO

Renewable Transport Fuel Obligation

SAF

Sustainable Aviaton Fuel

SIP

Synthesized iso-paraffins from hydroprocessed fermented sugars

UN

United Nations

UNFCCC

United Nations Framework Convention on Climate Change

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EXECUTIVE SUMMARY

Executive summary
What we did
This report presents recommendations to promote the production and deployment of Sustainable Aviation
Fuels (SAFs), which can replace conventional, fossil aviation fuel to reduce carbon dioxide (CO2) emissions
from aircraft. The insights come from discussions in the ITF’s Decarbonising Aviation Common Interest
Group, an expert forum on SAF policies bringing together government and industry representatives. The
group was established in 2021 under the ITF’s Transport Decarbonisation: Driving Implementation (DTImplement) programme and is chaired by Norway and Sweden. The group met four times in 2021/2 todiscuss strategies for the accelerated expansion of SAF production and use. In addition to insights fromthese meetings, the report draws on a stocktake of existing policy frameworks to promote SAF in aviation.

What we foundThe aviation sector has pledged to become climate neutral by 2050. SAFs are the only available low-carbon
fuel technology for air travel today. They are thus indispensable for the sector to reach its climate targets.
This is the case for long-haul flights in particular, which are responsible for most of aviation’s fuelconsumption.
Several governments have put in place policies to promote the deployment of SAF. The most advanced
programmes benefit from prior experience with policies that brought biofuels into road transport.
Specifically, these policies feature targeted mechanisms to reduce production costs.
The aviation industry expects SAF to deliver most of the necessary emission reductions. Many airlines havestarted to deploy SAF, albeit at small volumes. Fuel producers have invested in additional capacity.
Ramping up SAF production requires concerted efforts from governments and companies in the aviation
sector. These must begin now, to enable an uptake fast enough to meet aviation’s decarbonisation target.

What we recommend
Invest in Sustainable Aviation Fuels now to lower production costs to levels that allow widespread use
SAFs are expensive and their supply is limited today. Policy makers need to set incentives to produce more
SAFs to reduce costs and increase uptake. One incentive is to reward airlines that are already using SAF
despite the barriers. Another is to help producers to activate their existing facilities for SAF production.
Co-processing bioenergy feedstocks in conventional fuel production can increase SAF supply in the shortterm. Third, mobilising investments into production facilities that use advanced technologies helps
achieving commercial production scale, leading to lower costs and a growing market. Finally, measures tofacilitate the flexible distribution of SAF will overcome logistical constraints at a stage when SAF is only

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EXECUTIVE SUMMARY

available in few locations. They could include schemes that let suppliers deliver SAF to the general fuelsupply, rather than to specific airports or aircraft.
Support all sustainable production technologies and feedstock types that deliver credible emission
reductions
There are several SAF types available today. They vary in their fuel feedstock type and production
technologies. Different countries may choose to prioritise different SAF types, but support should focus
on fuels that reduce emissions the most. To this end, governments should provide production incentives
for fuels with high emission reduction potential. Policies should offer targeted support for fueltechnologies that – while perhaps less competitive today – promise to deliver emission reductions at large
production scales in the longer term.
Other important sustainability aspects include the need to prevent indirect land-use change (ILUC). Policies
can enable the emergence of an international SAF market by aligning national policies regarding carbon
accounting methods and monitoring measures. Such alignment also eases compliance with various
regulatory or voluntary frameworks for internationally operating airlines.
Expand existing SAF frameworks to help aviation deliver on international climate objectives
The International Civil Aviation Organisation (ICAO) adopted a long-term global aspirational goal (LTAG)
whereby international aviation acheives net-zero emissions by 2050. Doing so requires a strong scale-upof SAF. Several governments have adopted support frameworks. However, frameworks that mandate or
incentivise fuel production and deployment concentrate on a few leading markets. Without additional
policy ambition, the sector risks falling short of reaching international climate objectives. Governments
must increase the reach of existing frameworks now.
Capture opportunities for industrial development and energy supply resilience
Promoting SAF offers opportunities beyond climate benefits, includingdomestic industrial development
and reducing energy imports. Many regions that rely on fuel imports today already have bioenergy
resources or the posibility of generating renewable electricity. They can effectively supply domestic fuelproduction. SAF production is typically more decentralised compared to fossil fuels, offering opportunities
for local industry.
Create transport decarbonisation strategies that incorporate all transport sectors to maximise emission
savings
Governments should focus on holistic decarbonisation strategies that embrace all transport modes andavailable technology options. Several markets already use biofuels to reduce emissions in road transport.
Their policy experience could provide valuable lessons for a wider implementaion of SAF. Drop-in fuels,
which are entirely compatible with today’s aircraft, are the only available decarbonisation option foraviation today. Technology breakthroughs in hydrogen and battery electric aircraft are pending.
Governments can maximise emission reductions and energy savings today across all transport modes bydirecting available drop-in fuels to hard-to-decarbonise sectors, including aviation, while promoting
alternative, more energy-efficient decarbonisation technologies in sectors where they are available. For
example, electrifying road vehicles may reduce the sector’s reliance on biofuels and unlock feedstock for
SAF production in some contexts.

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HOW SUSTAINABLE AVIATION FUELS CAN DECARBONISE AVIATION

How sustainable aviation fuels can decarbonise
aviationOne-fourth of greenhouse gas (GHG) emissions come from transport, making decarbonising transport a
policy priority for reaching international climate objectives (ITF, 2023a). Promoting vehicle and fueltechnologies that reduce emissions per trip is a principle for fostering sustainable development in the
sector. Dynamic low-carbon technology developments exist, especially in road transport, where electricvehicles (EVs) have gained high market shares. However, reducing emissions in aviation, maritime andsome heavy-duty road transport is more challenging than in other transport modes. Decarbonising aviation
is especially difficult due to its high reliance on fossil fuels, reaching 99.85-99.9% of all fuel use today (IATA,
2023a).
The aviation sector accounts for 14% of global transport emissions (ITF, 2023a). Modern aircraft burn up
to 20% less kerosene than older models (IATA, 2023b), and more efficient operations could help reduce
the environmental footprint per passenger. However, the global demand for air travel is growing, and theabsolute sector emissions with it, despite decreasing carbon intensity per passenger. Global revenue
passenger-kilometres, a metric for air travel activity volume, increased by 76% in the ten years before
Covid-19 (ICAO, 2023a). The sector’s fuel use grew at lower rates than activity in this period thanks toefficiency improvements, but still increased by 39% (Figure 1). The Covid-19 health crisis disrupted aviationstrongly and caused a 44% drop in air travel in 2020. Many of the remaining flights operated with empty
seats, increasing the average energy use per traveller and reversing the trend of efficiency gains (Figure 1).
Currently, air travel is on a solid growth path as the industry recovers from the health crisis. Revenuepassenger kilometres reached 88% of pre-pandemic levels in spring 2023 (IATA, 2023c). The industry
expects air travel demand to double until 2040, with the most increase in the developing world withsignificant latent air travel demand (IATA, 2023c). The strong growth prospect and slower uptake of lowcarbon technologies compared to other sectors make aviation a priority sector for decarbonisation
policies.

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HOW SUSTAINABLE AVIATION FUELS CAN DECARBONISE AVIATION

Figure 1. Change in activity, energy use and energy intensity of passenger air transport, 2002-21
index change from 2002

Source: ICAO (2023a), IEA (2023a).
Notes: Energy intensity is the ratio of energy use and activity

National and international policy frameworks promoting emission reductions are less advanced foraviation than other sectors. For example, international and domestic aviation do not pay fuel taxes in mostmarkets while governments commonly impose fuel taxes on road transport to raise funds and priceexternalities. Governments may regulate domestic flights and negotiate environmental provisions inbilateral air transport agreements for international connections, but environmental regulation for aviation
generally lags behind other sectors. One reason is the sector’s exposure to international competition,
where a patchwork of environmental rules could distort the markets and harm a country’s aviationindustry. Despite these challenges, several countries have adopted environmental regulations for theaviation sector, such as incentivising low-carbon fuels, implementing environmental taxes, or limiting
domestic short-haul flights.
The International Civil Aviation Organization (ICAO) is the United Nation’s (UN) body responsible forenvironmental regulations for international aviation. Its mandate includes defining an emission pathway
for the sector, which is not covered by the UNFCCC Paris Agreement. In 2021, ICAO launched the Carbon
Offsetting and Reduction Scheme for International Aviation (CORSIA) for climate-neutral growth comparedto the 2019 base year in participating member states (IATA, 2023d). Governments in 2022 agreed on along-term global aspirational goal (LTAG) for international aviation of net-zero carbon emissions by 2050.
The LTAG is the most comprehensive environmental sector agreement to date and provides a clear
direction. Detailed sector plans to implement low-carbon programmes and technologies are needed toreach it.
Sector scenarios expect that most emission reductions needed to achieve the LTAG will come fromsustainable aviation fuel (SAF). SAF reduces emissions because it can replace fossil kerosene inconventional aircraft and usually has a lower carbon intensity than oil products. Already deployed in small
albeit growing volumes, it has more potential to cut emissions starting in the short term than novel aircraft
technologies like hydrogen or (hybrid-) electric aircraft. Their market entry is uncertain, and their expected
range will make them unviable on long flights, which are responsible for most emissions (ITF, 2023a). SAF
are the sector’s best bet to reduce emissions without curtailing activity. As such, safeguarding the LTAG
relies on effective policies to support SAF production and deployment. Some governments have
implemented policies to stimulate SAF deployment, and more countries are developing strategies.

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HOW SUSTAINABLE AVIATION FUELS CAN DECARBONISE AVIATION

What are sustainable aviation fuels?
SAFs are liquid aviation fuels with the same properties as conventional jet fuel that originate fromrenewable energy resources, either bioenergy or renewable electricity. Their compatibility with existing
aircraft technology and refuelling infrastructure makes them so-called “drop-in-fuels”. The compatibility
advantage of SAFs with existing airliners means they can start reducing sector emissions without fleet
replacements. Aircraft have a long, more than 20-year lifetime on average, and planes that enter the global
fleet today will still operate in 2050, the sector’s net-zero target date (World Bank, 2022).
SAFs’ lifecycle emissions determine their carbon footprint. They consist of the fuel’s carbon content (directemissions) and emissions that occur during fuel production (upstream emissions). Direct emissions do notdiffer between conventional jet fuel and various SAF types due to their near-identical characteristics,
including carbon content. However, the upstream emissions vary between SAF types and conventional
fuels and determine whether a fuel can realise net-savings. Factors that influence upstream emissions are,for example, emissions associated with feedstock production and the carbon intensity of electricity usedin production processes.
There are three groups of SAF types with drop-in properties:•

first-generation biofuels from lipids, including synthesized paraffinic kerosene fromhydroprocessed esters and fatty acids (HEFA)•

advanced biofuels from biochemical pathways and thermochemical pathways•

power-to-liquid (PtL) fuels, or e-kerosene, that use green electricity to produce hydrogen throughelectrolysis and combine it with carbon to synthetic hydrocarbons.

These SAF types differ not only in their emission footprint, but also in the technology readiness level of
their production processes and equipment, costs, and feedstock availability. HEFA is the most advanced
and least expensive production pathway today and supplies almost all SAF in the sector. The SAF market
is still evolving, and no global price standard exists. Production costs for HEFA are twice that ofconventional jet fuel, and advanced bioenergy and PtL are even less cost-competitive at today’s production
costs (IEA, 2021). Existing deployment relies on emerging policy frameworks and voluntary SAF purchasesby airlines and aviation users willing to pay a premium.

Existing sustainable aviation fuel deployment
In 2021, the global airline industry pledged to become climate neutral by 2050 through the International
Air Transport Association (IATA), and expects SAF to deliver 65% of the necessary emission reductions(IATA, 2023a). SAF deployment has increased dynamically in recent years, but their share within aviationfuel demand remains marginal. Voluntary industry uptake is the strongest driver for SAF market growth todate, and many airlines have entered into purchase agreements with SAF producers to reduce theirenvironmental impacts.
Government incentives for producing low-carbon fuel are another driver for SAF deployment. Most
existing frameworks focus on road fuels, but some governments have implemented or planned policy
frameworks tailored to promote SAF. Compliance requirements in some markets that have implemented
first SAF mandates also contribute to market growth, as can anticipation for future regulations. As
governments implement more comprehensive packages, there may be a gradual transition from voluntaryindustry uptake to policy frameworks – incentives and mandates – as the most relevant market driver.

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Figure 2. Announced sustainable aviation fuel trades per year (million litres)

Source: ICAO (2023b).
Note: The figure shows the volumes of offtake agreements tracked by the ICAO SAF Uptake Tracker, an online
database of announced SAF trades (ICAO, 2023b). Offtake agreements are contracts to purchase purchase all orsome of a project’s production.

SAF market size estimates for 2022 reach 300 to 450 million litres, representing just 0.1% to 0.15% of
global aviation fuel use (IATA, 2023a). Public announcements for SAF offtake agreements – to purchase allor some of a project’s production – herald strong market growth despite currently low deployment levels.
Transactions in the ICAO SAF Uptake Tracker, an online database of announced SAF trades (ICAO, 2023b),
reveal a sharp increase in ordered quantities from 0.4 to over 9 billion litres between 2020 and 2021 anda transaction volume of close to 22 billion litres for 2022 (Figure 2). These announcements generally covera delivery timeframe between two and five years. United Airlines, Delta, Lufthansa Group, Air France-KLM
and the One World Alliance are the leading SAF buyers (ICAO, 2023b).
SAF producers respond to the increasing market demand by investing in additional production capacity.
Yet, supply may remain tight for some time as new plants are built. Bringing a new production facility
online typically takes five years for established fuel pathways like HEFA and longer for advanced
technologies not yet operating commercially (IATA, 2023a). A database of announced SAF production
capacity to come online in 2022-2025 shows that 83% of additional production will likely come from HEFA,
followed by Fischer-Tropsch hydroprocessed synthesized paraffinic kerosene (FT) at 13% and alcohol tojet synthetic paraffinic kerosene (ATJ-SPK) at 2%. OECD countries will host over 90% of this additional
production capacity, continuing the current concentration of facilities in a few developed markets (World
Bank, 2022).

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SUSTAINABLE AVIATION FUEL PRODUCTION PATHWAYS

Sustainable aviation fuel production pathways
Several production pathways exist for SAF. SAF is derived either from bioenergy or the PtL pathway. The
technology standardisation body ASTM has certified seven SAF production pathways that use bioenergy
feedstocks and two pathways that use co-processing of bioenergy feedstocks in conventional fuelproduction (ICAO, 2023c). Certification of the PtL pathway is pending.
All pathways result in fuels with characteristics close enough to conventional aviation fuel to replace its
use in existing aircraft and refuelling technology. Existing certification allows up to a 50% blending of SAF
with traditional aviation fuels.. Despite the shared characteristics of the final fuels, the SAF pathways differ
substantially in production costs, maturity of technology components, emission reduction potential,
current feedstock availability and long-term scalability. The following section briefly outlines the different
production pathways. ITF (2021) provides a more detailed description of their costs, scalability andemission reduction potential.

Bioenergy-based pathways to produce sustainable aviation fuels
The seven ASTM-certified SAF production pathways using bioenergy fall into three categories:
oleochemical or lipid, thermochemical, and biochemical. Figure 3 lists pathway groups for producing dropin SAF.
The oleochemical (or lipid) pathway transforms lipid biomass (e.g., vegetable oils, animal fat or usedcooking oil) through hydrogenation into paraffinic fuels that blend with conventional jet fuel. The ASTMcertified oleochemical pathways are HEFA, catalytic hydrothermolysis jet fuel (CHJ), synthesized paraffinickerosene from hydrocarbon – hydroprocessed esters and fatty acids (HC-HEFA-SPK), and co-processed
HEFA that feed biomass into fossil fuel production. The HEFA pathway is technologically mature,comparably cheap and supplies almost all existing SAF in the market today. Plants produce a biodiesel
fraction of about 80% destined for road vehicles and a SAF fraction of about 15-20% (IRENA, 2021).
Biodiesel is common in many markets today, and synergies between this road fuel and SAF benefit thelatter’s production. However, there are concerns about the costs and availability of sustainable feedstock
for this commercial SAF category. Waste feedstocks such as used cooking oil and animal fat are finite, andbuilding efficient supply chains is a priority. Crop-based vegetable oils, like palm oil or rapeseed, are subject
to sustainability concerns, and some SAF policy frameworks, notably ReFuelEU Aviation, exclude themfrom eligibility (European Parliament, 2023).
Biochemical processes are a second SAF production category. They and convert biomass through biologicalprocesses such as fermenting sugars from sugar cane or corn to alcohol or enzymatic hydrolysis followedby biological sugar conversion. The two ASTM-certified pathways in this group are synthesized iso-paraffinsfrom hydroprocessed fermented sugars (SIP) and ATJ-SPK. First commercial plants use biochemical
pathways today, albeit with less mature technology and higher costs than for HEFA production. Mobilising
feedstock supply chains is a priority, and the pathways may benefit from synergies with ethanol production
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for road fuels. However, competing ethanol demand in other sectors could inhibit this pathway from
scaling up (IRENA, 2021).
Figure 3. Sustainable aviation fuel production pathway groups

Notes: ASTM: United States-based technology standardisation body; SAF: sustainable aviation fuels; HEFA:
synthesized paraffinic kerosene from hydroprocessed esters and fatty acids; CHJ: catalytic hydrothermolysis jet
fuel; HC-HEFA-SPK: synthesized paraffinic kerosene from hydrocarbon – hydroprocessed esters and fatty acids;
co-processed HEFA: co-hydroprocessing of esters and fatty acids in a conventional petroleum refinery; SIP:
synthesized iso-paraffins from hydroprocessed fermented sugars; ATJ-SPK: Alcohol to jet synthetic paraffinickerosene; FT: Fischer-Tropsch hydroprocessed synthesized paraffinic kerosene; FT-SKA: synthesized kerosene
with aromatics derived by alkylation of light aromatics from non-petroleum sources; co-processed FT: cohydroprocessing of Fischer-Tropsch hydrocarbons in a conventional petroleum refinery.
Source: ICAO (2023c).

Finally, thermochemical pathways convert lignocellulosic feedstocks such as wood, grasses, and residues
from agriculture and forestry (e.g., straw, twigs and rice husks) into jet fuel. This process uses thegasification of biomass to produce syngas, a mixture of hydrogen and carbon monoxide. The FischerTropsch process then synthesises these elements into hydrocarbons. Today, the production technologies
are less mature than for HEFA, but may become more competitive in the future.
Reducing technology costs and improving process efficiency are more significant concerns than feedstock
availability. The lignocellulosic feedstock is less prone to unintended impacts such as indirect land-use
change (ILUC) or competition with food production and could scale more than feedstock for oleochemicaland biochemical pathways. Municipal solid waste (MSW) is another feedstock under consideration. ASTM
has certified three thermochemical conversion processes: FT, FT-SKA and co-hydroprocessing of FischerTropsch hydrocarbons in a conventional petroleum refinery (co-processed FT).

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SUSTAINABLE AVIATION FUEL PRODUCTION PATHWAYS

Producing sustainable aviation fuels from the power-to-liquid
pathway
PtL pathways use electrolysis to produce hydrogen from electricity. The Fischer-Tropsch process thensynthesises the newly-produced hydrogen with carbon into synthetic hydrocarbons. Suitable carbon
sources are direct air capture (DAC), a process extracting CO2 from atmospheric air, or point-source carbon
capture, a process that extracts emissions from industrial processes. For PtL pathways to reach a better
emission profile than conventional fossil fuels, they must use renewable electricity in all production
processes. PtL fuel production only operates at a pilot scale today, and several technology components,
especially electrolysers and DAC, must advance their technology readiness level for PtL to becomecommercial.
Producing fuel from renewable electricity eliminates some of the feedstock availability and sustainability
concerns associated with bioenergy pathways. The PtL pathway yields e-kerosene and e-diesel and can
reduce emissions in several transport sectors. However, it may be difficult to expand renewable electricity
generation fast enough for e-kerosene to replace significant shares of fossil kerosene (ITF, 2023b). Greenhydrogen is an essential decarbonisation technology in several sectors, and promoting related
technologies can realise cross-sectoral benefits.

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INVEST IN SUSTAINABLE AVIATION FUEL NOW TO LOWER PRODUCTION COSTS FOR FUTURE USE

Invest in sustainable aviation fuel now to lower
production costs for future use
Most SAF production technologies can realise cost reductions. The diverse production pathways ofdifferent SAF types can replace fossil kerosene, but each comes with distinct advantages and challenges.
Factors such as feedstock availability and costs, technology readiness and costs, and the emission profile
of alternative pathways impact when they will become available, how much SAF they can deliver, and whatemission reductions they can achieve.
SAF costs limit their market uptake today and vary between pathways. They result from production plants’capital and operating cost and feedstock value, with varying impacts of these price components between
SAF types. For example, HEFA’s production costs depend more on feedstock prices than on technology
costs. In contrast, technology costs are higher than production costs for the advanced bioenergy and PtL
pathways (IRENA, 2021).
The cheapest SAF today is HEFA from the lipid pathway. It is the only commercially operating, maturetechnology because it uses the same production technologies as biodiesel. Traders do not disclose prices
of individual transactions, yet estimates for HEFA production costs reach USD 0.9-1.3 per litre (IEA, 2021).
The capacity of new and announced plants has increased recently. In 2023, Neste’s Singapore plantcompleted an upgrade that doubled its production capacity to 2.6 million tons of biofuel per year with a
SAF fraction up to 1 million tons per year (Neste, 2023). Maximising economies of scale through larger
plant sizes and mobilising supply chains of lipid feedstock may reduce HEFA costs as this fuel type scales
up in the short term.
Advanced bioenergy pathways do not operate at a commercial scale today, and the potential production
cost reductions are more uncertain than for HEFA. Their more elaborate production processes result inhigher technology costs than for HEFA production. These high technology equipment costs contrast withcomparably low feedstock costs. This holds especially for lignocellulosic biomass, which is, for example,
agriculture and forestry residues or grown on land unsuitable for food production. Feedstock for thealcohol-to-jet pathway is an exception, as it has other high-value end-uses than fuel production (IRENA,
2021). Reducing technology costs is a priority for making advanced biofuel production pathways morecompetitive in the mid-term. Production cost estimates for thermochemical aviation biofuels range from
USD 1-2 per litre of fuel (ITF, 2021).
E-kerosene production is the least advanced production pathway and currently only operates in pilot
projects. E-kerosene has a wide production cost range of USD 0.6-2.8 per litre of fuel, and strategic support
for this technology will be essential (ITF, 2021). For e-kerosene to be a competitive fuel in the long term,
technology costs for renewable electricity production, electrolysers and DAC must fall.

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Targeted policies can reduce costs and increase deployment
The SAF sector grew dynamically in recent years thanks to voluntary market uptake by pioneering users
and emerging policy frameworks. Projected SAF demand for achieving the ICAO LTAG reaches 450 billion
litres by 2050. Several countries have adopted national SAF deployment targets. SAF deployment
only represented 0.01-0.015% of jet fuel use in 2022 (IATA, 2023a). Reaching deployment targets
requires a robust SAF production increase now. SAF’s high prices and limited supply hold the market
back. Increasing production could unlock cost reductions through technology learning and economies ofscale, especially for advanced production pathways that currently do not operate commercially.
Expanding existing low-carbon fuel strategies to the aviation sector emerges as a priority to increase SAF
supply, even if at an early market stage and in small volumes. Governments can kick-start the SAF industry
without causing market disruptions while SAF supply is limited by mandating the use of small volumes of
SAF. For example, France, Sweden and Norway mandate SAF use at low percentages of fuel use (S&P
Global, 2022). Low carbon fuel standard (LCFS) programmes that include incentives for SAF production
drove early market growth in the United States. The concentration of the current SAF production inmarkets that offer policy incentives supports that they are necessary to enable early market growth.
These policy interventions offer certainty to investors, thus mobilising funding for projects that can reduce
production costs in the near term and prepare for mass deployment in the long term. The expected market
price, production costs and feedstock availability determine the expected investment returns. Investors
also want visibility on future SAF demand and market size before they finance SAF production. Voluntary
SAF uptake from pioneering airlines is an important market driver for existing market uptake but may notoffer enough market certainty to mobilise investments at the scale necessary to reach long-term
decarbonisation objectives in the sector.
Simplifying compliance with policies while safeguarding their objectives is essential to avoid stifling earlymarket growth and regulatory pressure on the industry. For example, governaments can offer flexibility
for meeting fuel blending requirements to avoid logistical challenges. These challenges may arise if
regulated parties must meet a SAF mandate for each individual flight or airport. This is especially true inan early market stage when SAF is produced at few locations. The resulting long fuel transports increase
costs and emissions. Governments can ease compliance measures through a mass balance system thatallows fuel suppliers to meet blending requirements on average. Deliveries can be made to a general fuelpool or a book-and-claim system that separates market transactions from physical fuel deliveries.
European policy makers are making moves in this direction. Fuel suppliers must comply with the ReFuelEU
Aviation’s blending mandate starting at 2% in 2025; they can fulfill it on average across their airport
portfolio rarther than at every airport where they operate (European Council, 2023). Ensuring that SAF is
supplied at all airports, including remote ones, may become a policy priority when SAF increasingly
replaces conventional fossil kerosene in the aviation system. Besides easing policy compliance, book-andclaim systems can also aid voluntary fuel uptake by separating SAF trade from physical fuel deliveries. A
White Paper from the Clean Skies Tomorrow programme describes a SAF certificate system that would
simplify market transactions and establish a transparent system for involved parties to claim emission
savings from the voluntary SAF uptake (WEF, 2022).
Co-processing can leverage existing fuel production assets to bring low-carbon feedstock into the aviation
sector. Co-processing introduces low-carbon feedstocks into conventional fuel production processes. It
reduces the fuel’s emission intensity and can assist in developing SAF feedstock supply chains, using
existing production facilities while in the current lack of dedicated biofuel plants. Co-processing produces
fuels with a higher emission intensity than SAF and does not offer the same decarbonisation benefits, yet

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it can be an important first step for a more comprehensive transition in the sector. ASTM has certified two
co-processing pathways for SAF production: co-processed HEFA and co-processed Fischer-Tropsch (ICAO,
2023c).
Policy interventions that mobilise investments in the less mature advanced bioenergy and the PtL
pathways now can assist in building future supply. The ReFuelEU Aviation proposal with a sub-blending
target for e-kerosene, reaching 1.2% within a 6% overall SAF target by 2030, is one example of a policy
with targeted support for advanced pathways (ITF, 2022). Supporting the early market growth of lessadvanced SAF types is essential to reach mid- and long-term deployment targets because scaling SAF
technologies from pilot projects to commercial production takes time. HEFA production is commercial
today and represents almost all existing SAF supplies. This pathway underwent a ten-year scaling processfrom first pilot projects and test flights to commercial production. SAF from advanced bioenergy and the
PtL pathways are yet to reach commercial scale and will be important pillars for reaching mid- and longterm SAF deployment targets.

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Embrace all sustainable production pathways andfeedstock types that deliver credible emission
reductions
The carbon content between different SAF types and fossil kerosene does not vary. However, different
production processes and feedstock types result in distinct well-to-tank (upstream) emission profiles that
determine the mitigation potential of different SAF types. Influencing factors include inputs into feedstock
production – such as fertiliser –, the energy intensity of production processes, and the carbon intensity ofenergy used in production processes. Bioenergy feedstock production may induce ILUC, which can have astrong impact on the emission profile of final fuel products and even increase emissions compared to fossil
kerosene. The various factors that influence the emission profile of SAF make the carbon intensity of fuelproducts very case-dependent. However, default emission factors for different SAF types, such as for
eligible fuels under ICAO CORSIA, reveal that the advanced bioenergy and PtL pathways generally maximiseemission savings, except for HEFA produced from a waste feedstock.

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Figure 4. Default values for life-cycle CO2 emissions of CORSIA-eligible fuelsNote: MSW: Municipal solid waste; gCO2-eq/MJ: grammes of CO2 equivalent per megajoule. Negative values
reflect cases where indirect land-use change affects more than offset positive emissions from feedstock production
and conversion. They are provisionally allowed during the pilot phase of CORSIA (2021-23). A decision on whether
to continue allowing negative values will be made by the end of the pilot phase (2023).
Source: (ITF, 2021) based on ICAO (2022a).

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EMBRACE ALL SUSTAINABLE PRODUCTION PATHWAYS AND FEEDSTOCK TYPES THAT DELIVER CREDIBLE EMISSION REDUCTIONSSAF from lipid bioenergy pathways such as HEFA from palm oil, rapeseed and soybeans, and thebiochemical pathway using corn ethanol tend to have a higher emission intensity than other SAF types. In
some cases, it reaches or exceeds the emission intensity of fossil jet fuel at 89 gCO2 per MJ, thus offsetting
any carbon savings. Growing energy crops for these SAF types is susceptible to causing ILUC, which is
responsible for the better part of several pathways’ carbon footprints (ICAO, 2022a).
HEFA delivers the most emission benefits if produced from waste products such as used cooking oil oranimal fat. These fuels’ default lifecycle emission factors are significantly lower than those of other fuelsof the HEFA group. However, their supply may be limited, thus constraining the amount of SAF andabsolute emission reductions they can deliver. Advanced bioenergy SAF pathways, such as ATJ-SPK fromagricultural and forestry residues and lignocellulosic energy crops, tend to have lower default lifecycle
emission factors than first-generation biofuels, as do thermochemical bioenergy pathways that produce
fuel through gasification and Fischer-Tropsch synthesis. ILUC emissions of several fuel types are negative,
meaning that these fuels sequestrate more CO2 than they emit (ICAO, 2022a).
E-kerosene is currently not approved as SAF under CORSIA and so not listed in the default lifecycle emission
factors in Figure 4. E-kerosene’s emission performance depends strongly on the carbon intensity ofelectricity to operate electrolysis and drops sharply against an increasing carbon intensity of the powermix (Figure 5). The source of carbon – from DAC or point source sequestration (carbon capture andutilisation, CCU) also affects the lifecycle emissions of e-kerosene. The input electricity must have a carbon
intensity of 110 gCO2-eq/kWh or less to safeguard climate benefits compared to conventional jet fuel (ITF,
2023b). For comparison, the average carbon intensity of the European Union (EU) grid in 2019 was
255 gCO2-eq/kWh. The grid carbon intensity of Austria, Finland, France, Lithuania, Luxembourg, andSweden met the threshold for emission savings in that year (European Environment Agency, 2023).
Figure 5. Life-cycle GHG emissions for e-kerosene, gCO2-eq/MJ

Notes : DAC=direct air capture, CCU = carbon capture and utilisation.
Source: Adapted from ITF (2023b), based on Ueckerdt et al. (2021) with data from Moirangthem (2016).

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Choosing which sustainable aviation fuel types to prioritise forpolicy support
Policies that promote SAF to reduce climate impacts from aviation should focus on fuel feedstocks andproduction technologies that maximise emission savings. The lifecycle emission footprint of fuels is themost relevant indicator to measure climate benefits and can guide policy design to promote SAF market
scale-up. However, there are further important considerations than the default lifecycle emission factor.
The carbon footprint of individual fuel deliveries is case-dependent. Policy makers may choose to avoid
fuel types prone to unintended consequences that can reduce or even offset the fuel types’ benefits.
Feedstock scalability should also be analysed, as available resources may constrain a fuel type’s potential
absolute emission reductions. For example, HEFA from used cooking oil and animal fat offer strong
emission reduction potentials but face a finite feedstock supply, thus restricting these fuels’ total
contribution to sector decarbonisation targets.
Policy frameworks should accommodate fuels’ varying market readiness. They should also enable themarket growth of expensive pathways that can maximise savings in the long term at high production scales.
Table 1 summarises considerations for evaluating different SAF categories.
Table 1. Benefits and challenges of different sustainable aviation fuel pathways
Pathway category

Scalability

Costs

Emission benefits

Oleochemical/lipid(+) most commercial
technology that can support
early sustainable aviation fuelscale-up(+) low technology costs(+) high if using waste
feedstock(-) limited cost reduction
potential, waste feedstock
limitations may increase costs(-) limited if using energy crops(-) sustainable feedstock supply
faces limitations
Biochemical

Thermochemical

Power-to-Liquid(+) high feedstock availability(+) cheap feedstock(+) high, especially if using
agriculture and forestry
residues(-) early technology
deployment stage(-) high technology costs,
competing feedstock uses forsome fuels(+) high feedstock availability(+) cheap feedstock(-) early technology
deployment stage(-) high technology costs(+) not dependent on biomass
feedstock(+) high cost reduction
potential(-) nascent technology
deployment stage ofelectrolysers and direct air
capture(-) high costs and uncertainty of (-)savings depend on fast
cost reductions
power grid decarbonisation(+) highest emission benefits
among bioenergy pathways(+)high if produced withrenewable electricity

Different SAF types’ costs and market readiness evolve and may influence policy support allocations.
Advanced SAFs (biochemical, thermochemical and PtL) can deliver large-scale emission reductions but are
currently the most expensive options. First-generation biofuels (oleochemical) are the cheapest SAF today
and maximise emission reductions if produced from waste feedstock, but maintaining supply may become
difficult as fuel production increases. While these fuels will deliver the most short-term market growth due
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to their cost competitiveness and existing production scale, they may lose market shares to more advanced
SAF types as they become more competitive mid- and long term.
Some countries invest in SAF programmes for more reasons than maximising emission reductions. For
example, some developing countries will promote the production of energy crops to produce HEFA despite
the relatively low emissions benefit because it allows rural areas to improve their livelihood. These
countries may see the benefit of producing other fuels with higher emission savings but the production
technology may not be available in the region.

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Expand existing sustainable aviation fuel policy
frameworks to help aviation achieve international
climate objectives
The aviation industry must transition to SAF fast to meet emission targets. The industry expects SAF toprovide 65% of the emission reductions necessary to reach the ICAO LTAG by 2050, which is the equivalent
to an annual demand of 450 billion litres or 1 000 times the current production levels (IATA, 2023a). Fuelproducers, airlines and governments must make concerted efforts to ensure aviation delivers on thisobjective. A priority for governments is to expand existing policy frameworks to increase SAF production
and deployment. This section presents policy design options from frameworks developed by ICAO andselected governments.

ICAO environmental frameworks embrace sustainable aviation fuels
to reduce emissions
The International Civil Aviation Organization (ICAO) is the UN body responsible for international aviation
regulations, including environmental issues and other sector objectives. In 2010, member states adopted
the goals of achieving average fuel efficiency improvements of 2% per year between 2020 to 2050 andcarbon-neutral sector growth from 2020 to 2040 (ICAO, 2010).
ICAO’s recommended instruments to reduce aviation emission, the so-called basket of measures, are:operational improvements; aircraft technology; deploying SAF; and the Carbon Offsetting and Reduction
Scheme for International Aviation (CORSIA), a voluntary market-based measure (ICAO, 2019).
In 2018, ICAO launched the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
to encourage carbon-neutral growth in the aviation sector between 2020 and 2040. The two-year pilot
phase started in 2021 with volunteering member states. Aviation emissions during the pilot phase havebeen lower than expected due to the sector disruption from Covid-19, meaning that airlines inparticipating countries could meet reduction targets without additional reduction measures (ITF, 2021).
Following CORSIA’s pilot phase, the programme will enter its first phase, which will take place from2024-26 and for which participation is still voluntary. A second phase, from 2027-35, will then apply to allstates exceeding a minimal traffic threshold, representing the majority of international aviation activity(ICAO, 2023d).
Airlines in CORSIA countries can offset emissions growth over the threshold by buying tradeable carbon
credits or deploying CORSIA-eligible fuels. Both lower-carbon aviation fuel (LCAF) and SAF are eligible
under CORSIA, whereby the former includes fossil fuel with reduced carbon intensity due to measuresapplied during fuel production. CORSIA sustainable aviation fuels include first- and second-generation
biofuels from several feedstock families and production technologies (Figure 4). Eligibility criteria require
fuels to demonstrate a 10% lifecycle emission reduction compared to conventional fossil fuels at
89 gCO2/MJ. This emission reduction threshold is less stringent than in other SAF frameworks, such as in

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the EU (65%), the United Kingdom (50%) and the United States (50%). In addition to GHG emission
reduction requirements, CORSIA stipulates eligibility criteria pertaining to other impact categories, such as
land conversion, water use and food security, as well as certification guidelines for fuel deliveries (ICAO,
2022b). CORSIA is the only global framework facilitating SAF deployment. However, the higher carbon
abatement costs of SAF compared to offsets limit CORSIA’s effectiveness in promoting SAF. Airlines may
opt for buying offset certificates instead of SAF (IRENA, 2021).
In 2022, member states at the 41st ICAO Assembly adopted an LTAG for international aviation to reach netzero CO₂ emissions by 2050 (ICAO, 2023e), increasing international aviation’s climate ambitions. The priorfeasibility study for a collective emission target, “Report on the feasibility of a long-term aspirational goal
(LTAG) for international civil aviation CO2 emission reductions”, recognised SAFs as the most importantmeasure to reduce emissions, reinforcing their role in sustainable aviation (ICAO, 2022b). The LTAG is
designed as an aspirational sector target without an enforcement mechanism. Such a design could limit its
effectiveness in promoting SAF in the short term. However, it is an important step for global emission
reductions and SAF deployment that sets the scene for future funding, capacity building, and technology
transfer programmes.
To this end, ICAO set up its Assistance, Capacity-building, and Training for Sustainable Aviation Fuels (ICAO
ACT-SAF) programme in 2022 to assist states in promoting SAF (ICAO, 2023f). Achieving the LTAG will rely
on national programmes to support the SAF sector and other measures that reduce aviation emissions.
ICAO members report related activities in biannual ICAO State Action Plans, and forthcoming editions will
provide further information on programmes to support the LTAG through SAF deployment (ICAO, 2023g).

Principle design elements of sustainable aviation fuel policies
SAF could potentially be the greatest driver in necessary emission reductions for the aviation sector,
allowing the sector to become carbon neutral by 2050. The ICAO LTAG set this important target for
programmes that reduce emissions from international aviation. Its successful implementation will rely on
individual member states’ action from to promote SAF. Several advanced SAF strategies predate the ICAOLTAG, but the LTAG created additional momentum in the sector.
Governments that support SAF have a common objective, yet programme designs and ambitions vary.
Three basic design elements for policies are:•

SAF deployment targets•

regulatory frameworks to mandate SAF supply or use (stick approach)•economic incentives for SAF supply or use (carrot approach).

SAF deployment targets are often the first step for a comprehensive policy package and set the level ofambition for the sector. SAF deployment targets establish a market-share percentage or an amount of SAF
that should be in use by a specific year. Markets that have adopted explicit targets for SAF deployment
include EU members, India, Indonesia, Japan, Norway, the United Kingdom and the United States.
However, SAF deployment targets may prove ineffective if they are not coupled with frameworks that
promote investment in SAF.
Economic incentives for SAF supply or use are similar to those in other sectors that have successfully
brought low-carbon technologies into the market, including road transport and the power sector. ITF(2023b) presents available policy designs, ranging from mechanisms that assist investors in accessing
finance to direct subsidies for SAF production and deployment. Support instruments can come in at
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different market stages to support R&D activities or close the production cost gap between producing SAF
and conventional kerosene. Many markets incentivise activities that can advance SAF. These include tax
incentives for SAF production in the United States, funding for R&D and plant investments in European
countries, and research programmes in the United Arab Emirates.
Regulatory frameworks to mandate the supply or use of SAF come as fuel blending mandates or LCFS. A
fuel blending mandate requires fuel suppliers or users to meet blending quotas of SAF with conventionalfuel, either as a blending share or in absolute quantity, over given periods. LCFS prescribe a decreasing
carbon intensity for fuel sold in the market that suppliers can meet by producing eligible low-carbon fuels
or purchasing credits from suppliers that overachieve their quota. Fuel blending mandates and LCFS areeffective at bringing a determined quantity of alternative fuels into the market but do not offer pricecertainty. Overly ambitious policy targets may outstrip supply and lead to high fuel prices, while low
requirements fall short of stimulating large investments in production. ITF (2023b) discusses theadvantages and shortcomings of these policy designs in more depth. The policy frameworks of the EU andthe United Kingdom deploy regulatory frameworks to mandate SAF use.
As of 2023, the most elaborate SAF policy frameworks and proposals cover the EU, UK and US markets.
These same regions also produce the most SAF, indicating that policy frameworks stimulate production.
The US policy follows a carrot approach, with tax incentives for production. The EU and UK programmes
also support R&D and plant investments, but mandatory blending requirements lie at their core. Blending
mandates are effective in reaching a desired deployment level, yet the aviation industry warns that theymust be accompanied by production incentives to prevent sharp price increases (IATA, 2023e).
Instruments that buffer against unreasonable price fluctuations, such as the buyout mechanism in the UK
policy proposal, can address these concerns.
Finding ways to make varied policies compatible will be a priority to ease compliance for companies that
operate in multiple jurisdictions. As mentioned above, the emission reduction threshold for eligible SAF
types under the EU (65%), US (50%) and UK (50%) frameworks are significantly stricter than under the
global SAF definition of the ICAO CORSIA (10%). The low emission reduction criteria under ICAO CORSIA
are more inclusive, yet stricter thresholds may channel policy support to technologies that can best deliveron aviation’s net-zero objective.
Additional regions, especially Asia and Oceania, are expected to adopt supportive policy frameworks soon.
Almost all announced SAF production capacity additions until 2025 are in OECD countries (World Bank,2022). This uneven distribution of announced capacity additions mirrors that policy frameworks indeveloping countries tend to be less advanced than in Europe and North America, despite a high feedstockpotential in many developing countries (ICF, 2023). Building capacity and attracting investments for
production facilities are priorities for these markets to overcome concerns of high costs and limited
production facilities for SAF. Despite these challenges, several countries consider opportunities for local
SAF production, including Argentina, Kenya and Burkina Faso (ICAO, 2018a; ICAO, 2018b; ANAC, 2021).
India already produces SAF domestically (Gevo, 2023).

Many markets look to sustainable aviation fuel to reduce emissions
The Aviation Common Interest Group is a sustainable aviation fuel (SAF) policy forum under the auspicesof the International Transport Forum, with experts from 19 governments and 14 companies. The groupconvened four times in 2021 and 2022, and members shared insights on strategies to support SAF. Thissection summarises the SAF policies of some countries that joined project activities. The information
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meetings and original research. The section considers official targets for SAF deployment and strategies topromote these fuels, either through incentive programmes or fuel mandates. ECAC (2023) presents policy
information for additional European countries.

United States

United Kingdom

United Arab Emirates

Türkiye

SwedenSpain

NorwayJapan

Indonesia

India

Germany

FranceEuropean Union

CanadaArgentina

Table 2. Policy designs deployed by selected sustainable aviation fuel programmes

Official SAF
targetRegulatory
framework
Incentive
programmes
Note: The figure provides an overview of deployed policy designs in selected SAF programs. Shaded areas indicatethat a country’s policy features the design element in question.

Argentina

Argentina recognised SAF as a measure that can reduce emissions from aviation in its 2021 Action Plan for
Reducing CO2 Emissions in Aviation (ANAC, 2021). There is no regulatory or incentive framework topromote SAF use and investments. Initiatives reach back to 2011, when the government and industry
agreed to study domestic SAF production opportunities. Today there is no significant SAF deployment
despite opportunities to promote a domestic SAF industry.
CanadaEconomic programmes that promote SAF include a CAD 227.9 million Low Carbon Fuel Procurement
Program for SAF and Renewable Diesel and a CAD 1.5 billion Clean Fuels Fund to support investment in
low carbon transport fuels (Government of Canada, 2022a; Government of Canada, 2022b). The
government also awarded CAD 5 million to innovative SAF producers under its Sky’s the Limit Challenge(Government of Canada, 2022c). There is no official SAF deployment target nor a framework withregulatory requirements to deploy SAF. British Columbia’s Low Carbon Fuel Standard does not include theaviation sector.
European Union

ReFuelEU Aviation is a regulatory framework by the European Commission to scale up SAF proposed in
2021 and confirmed in 2023. A SAF blending mandate will apply to aviation fuel suppliers at 2% in 2025,
6% in 2030, 20% in 2035, 34% in 2040, 42% in 2045, and 70% in 2050. There are sub-targets for PtL aviation
fuel, and 1.2% of supplied SAF must come from this advanced pathway by 2030. The sub-target will

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increase to 5% in 2035 and 35% in 2050. ReFuelEU Aviation excludes feedstock that can be used for feedor food. (European Parliament, 2023)
The EU Renewable Energy Directive (RED) lists eligible feedstock in Part B of Annex IX. The emission
reduction threshold for eligible biofuels under RED is 65% (EU, 2018). The blending mandate would apply
to fuel uptake at all EU airports. A ten-year transition period will offer flexibility to meet blending
requirements as an average across airports. Aircraft must take up at least 90% of fuel needs at the origin
airport to prevent airlines from fuel tankering, i.e., carrying excess kerosene on inbound flights from nonEU airports without a blending mandate (European Council, 2023).
Non-compliant parties will face penalties, and collected fines would contribute funding to a Renewable
and Low-Carbon Fuels Value Chain Industrial Alliance, a programme to support SAF research andproduction. The blending mandate for synthetic aviation fuels (e-fuels) considers renewable hydrogen,renewable electricity and renewable fuels of non-biological origin. (European Council, 2023; ITF, 2023b)
EU members that adopted national SAF programmes before the ReFuelEU Aviation framework’s
confirmation may harmonise provisions to avoid a fragmented policy landscape.
FranceAs an EU member, France will adopt the ReFuelEU Aviation provisions. In addition, France mandated that
1% of aviation fuel would be SAF as of 2022 (Ministère de la Transition écologique, 2020). The
2021 National SAF Deployment Roadmap called for research and demonstration projects to apply forfunding, targeting SAF from advanced bioenergy and hydrogen-based fuels (Ministère de l'Économie etdes Finances, 2021).
Germany

As an EU member, Germany will adopt the ReFuelEU Aviation provisions. A national policy framework
promotes power-to-liquid (PtL) in aviation (Federal Government of Germany, 2021). A confirmed blending
mandate foresees 0.5% PtL in aviation by 2026 and 2% by 2030 (~200 000 tonnes of fuel by 2030). The
early market scale-up aims at closing the cost gap between PtL and other advanced SAF.
Funding programmes for renewable fuels have EUR 1.54 billion available for 2021-2024. Proposed
instruments targeting PtL in aviation include a funding guideline for supporting plants with >10 000 tonnesof annual production capacity. Support programmes focus on domestic projects and foresee deployment
in other countries with high renewable energy potential as the technologies commercialise.
India

Increasing the use of bioenergy is a pillar in India’s strategy to become a carbon-neutral economy by 2070.
Existing policy frameworks in India to promote bioenergy in transport focus on the road sector, including
a 20% ethanol blending target for gasoline by 2023 (Government of India, 2022). A 2020 policy revisionadmitted surplus production and damaged grain as eligible feedstock (Government of India, 2021), which
could increase feedstock supply for SAF production. The government is exploring a 1% SAF blending
mandate for domestic flights for 2025 (Reuters, 2023). Domestic fuel production has started with
agricultural waste feedstock (Gevo, 2023).
Indonesia

The government promotes SAF as part of a broader strategy to scale up bioenergy in all transport sectors,
focusing on palm oil as feedstock. The national oil company Pertamina has several SAF pilot projects
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underway that use palm oil as feedstock (DGCA Indonesia, 2022). Indonesia adopted SAF blending targets
in 2015, aiming to reach 5% by 2025 (IEA, 2021). However, deployment remains nascent and will not meetthis target. SAF projects in Indonesia currently focus on fulfilling technical specifications. Sustainability
criteria for SAF are yet to be specified.
Japan

In 2023, the Japanese government announced a 10% SAF blending mandate for 2030 (NIKKEI Asia, 2023).
Economic support programmes are in place to support the objectives of the Green Growth Strategy, adocument that outlines the country’s SAF plans (METI, 2021). It prioritises the SAF pathways of biomass
gasification with Fischer-Tropsch synthesis, alcohol-to-jet, and algae-based fuels. Programmes also invest
in R&D for technologies and processes deployed in the PtL pathway. The government aims to reduce SAF
production costs through economic measures and has adopted a target price of JPY 100 (~USD 0.8) per
litre SAF by 2030, which would close the price gap with conventional jet fuel.
NorwayA 0.05% SAF mandate for domestic and international flights took effect in 2020. The government aims toraise the blending rate to 30% by 2030 (EUROCONTROL, 2022). In 2020, SAF volumes reached 2.5 million
litres, compliant with the 0.5% target. However, the Covid-19 crisis kept that year's absolute aviation
demand low. The SAF supply comes from hydroprocessed esters and fatty acids (HEFA), with waste oils
sourced in Europe as feedstock.
Spain

As an EU member, Spain will adopt the ReFuelEU Aviation provisions. At the national level, the Law on
Climate Change and Energy Transition stresses the importance of promoting advanced bioenergy and PtL
SAF (Goverment of Spain, 2021).
SwedenAs an EU member, Sweden will adopt the ReFuelEU Aviation provisions. At the national level, the country
adopted a SAF blending mandate of 1% in 2021 with the goal of reaching 30% in 2030 (EUROCONTROL,
2022).
TürkiyeTürkiye’s Ministry of Industry and Technology collaborates with the EU on promoting SAF under the project
Integrated Biorefinery Concept for Bioeconomy Driven Development (INDEPENDENT). This project uses
algae feedstock (Lo, 2022). There is no official target for SAF deployment.
United Arab Emirates

The United Arab Emirates (UAE) supports SAF through several R&D and demonstration projects exploringalternative SAF types' potential for local production. Demonstration projects include SAF production withfeedstock from halophytes plants that grow under local conditions and from gasification of MSW and
Fischer-Tropsch synthesis.
The UAE has not adopted a formal SAF target, and the industry has no regulatory requirement to scale up.
However, the country has pledged to become a carbon-neutral economy by 2050 and, in 2023, released a30

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EXPAND EXISTING SUSTAINABLE AVIATION FUEL POLICY FRAMEWORKS TO HELP AVIATION ACHIEVE INTERNATIONAL CLIMATE OBJECTIVESNational Sustainable Aviation Fuel Roadmap (UAE Ministry of Energy & Infrastructure, 2023). The UAE
airline Etihad Airways has pledged to reduce emissions by 50% until 2035 (from 2019 levels) and to becomecarbon neutral by 2050 (Etihad, 2020).
United Kingdom

The United Kingdom’s sustainable aviation fuel mandate policy proposal combines a regulatory framework
mandating SAF supply with several incentive programmes to encourage production using innovative
pathways through advanced bioenergy and PtL. The government is conducting a public consultation on
policy design with two phases in 2021 and 2023. The government has confirmed a SAF mandate for fuelsuppliers at 10% from 2030. At the moment, the target share for 2025 and years after 2030 are
unconfirmed.
The policy design employs a system of tradeable certificates. Fuel suppliers must purchase enough SAF
certificates from producers to meet the blending target. Tradeable certificates represent an amount of
SAF measured in energy content. Certificate calculations consider a carbon intensity factor. Fuels that
reduce emissions by more than 70% compared to an 89 gCO2/MJ baseline (representing fossil fuels)
receive additional certificates. The policy sets a 50% emission reduction threshold for eligible fuels –considerably stricter than CORSIA’s 10% (DfT, 2023). The policy excludes feedstock from feed and foodcrops and proposes a ceiling for HEFA in aviation to protect existing HEFA uses in the road sector fromsupply bottlenecks and price increases.
A sub-target for e-kerosene is under consideration to support this more advanced fuel. There are four
proposed trajectories for PtL blending rates, of which the proposed medium and high ranges are similar
to the PtL sub-targets in ReFuelEU Aviation.
The policy proposal features a mechanism to buy out from blending obligations to prevent price shocks incase of supply shortfalls. The proposed buyout price is GBP 2 per litre for bioenergy SAF and GBP 2.75 perlitre for PtL SAF. These prices reflect pessimistic production cost expectations of the most expensive
production pathway in the respective fuel family (bioenergy and PtL) minus the expected cost for fossil
fuel (DfT, 2023).
Once adopted, the policy will be a stand-alone policy promoting SAF uptake with more targeted support
than offered by the existing Renewable Transport Fuel Obligation (RTFO), which currently includes aviation
fuel.
United States

The US government announced the SAF Grand Challenge in 2021. This policy aims to accelerate the scaleup of SAF by reducing its production costs, increasing production volumes and strengthening its
environmental performance. The policy’s objective is to shift the majority of aviation fuel demand to SAF
by making it cost-competitive with conventional jet fuel.
The SAF Grand Challenge adopts deployment targets of 10% for 2030 (3 billion gallons) and 100% for 2050
(40 billion gallons). For a SAF to be eligible, it must reduce emissions by at least 50% compared toconventional jet fuel. An implementation plan, the SAF Grand Challenge Roadmap, was released in 2023
and outlined the necessary steps to reach deployment targets (DoE, DoT, USDA, 2022). The SAF Grand
Challenge focuses on economic incentive programmes with blender and production tax credits tostimulate SAF supply. The 2022 Inflation Reduction Act (IRA) is a central mechanism to assist several
sectors in decarbonising. It offers incentives of up to USD 1.75 per gallon SAF. The SAF Grand Challenge
does not specify a sub-target for PtL SAF. However, tax incentives for renewable electricity and low-carbon
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EXPAND EXISTING SUSTAINABLE AVIATION FUEL POLICY FRAMEWORKS TO HELP AVIATION ACHIEVE INTERNATIONAL CLIMATE OBJECTIVEShydrogen production in the IRA will also benefit PtL production, whereby incentives for hydrogenproduction reach up to USD 3 per kg (Wood Mackenzie, 2022; Webster, 2022).Integrating sustainableaviation fuel policies with transport decarbonisation strategies
Promoting domestic industrial development and strengthening energy resilience are important policy
objectives of SAF programmes in addition to reducing aviation emissions. SAF production is more
decentralised than fossil fuels because production facilities tend to be smaller and near production
resources. This holds especially for facilities using advanced bioenergy feedstock and PtL. Investing indomestic fuel production can boost the local economy through employment opportunities, increaseenergy supply resilience and reduce dependence on fuel imports. The UK sustainable aviation fuelmandate policy proposal mentions both energy security and job creation as programme objectives (DfT,2023).
SAF frameworks are often part of wider decarbonisation strategies encompassing multiple sectors. For
example, the US 2022 Inflation Reduction Act offering incentives for SAF production covers many sectorsof the economy, and the EU ReFuelEU Aviation programme will support the broader Fit for 55 packages of
the European Green Deal. (European Council, 2023; Wood Mackenzie, 2022)
Biofuel programmes for road transport predate SAF programmes in many markets and offer importantlessons to policy makers seeking to promote SAF. Biodiesel and SAF from HEFA use the same production
technology, and plants that produce both fuels can optimise processes to maximise the output of either.
Existing policy frameworks tend to offer more support to biodiesel, thus prompting plants to optimise
production for road fuels (IRENA, 2021). Taking a cross-sectoral perspective when designing programmes
can optimise resource allocation between sectors and prevent unintended impacts. An importantconsideration is that low-carbon drop-in fuels are the only decarbonisation option for most flights. This isdifferent for many road transport segments, where electrification is a more energy-efficient option withhigher emission savings than biofuels or synthetic fuels.
Governments can maximise emission reductions and energy savings across the economy by directing
available drop-in fuels to hard-to-decarbonise sectors, including aviation, while promoting alternative,
energy-efficient decarbonisation technologies in sectors where they are available. For example,
electrifying road vehicles may reduce the sector’s reliance on biofuels and unlock feedstock for SAF
production in some contexts. Strategies should acknowledge that road transport’s reliance on drop-in fuelscontinues despite increasing EV sales in many markets in legacy fleets or segments not ready forelectrification. Strategies to divert drop-in-fuel feedstocks to aviation while the road sector still relies onthem could cause unintended consequences. For example, aviation and road biofuels are directlycompeting for feedstock supply. The competition could increase abatement costs in the road sector, which
poses important questions on equity because aviation users tend to be a small, rich group within society(IEA, 2020). The UK sustainable aviation fuel mandate policy proposal’s HEFA cap offers insights into
strategies to prevent unintended consequences. It aims to avoid diverting feedstocks from road transport,
where they are still needed during the transition to zero-emission road vehicles (DfT, 2023).
Reaching the ICAO LTAG for net-zero emissions by 2050 requires a robust scale-up of SAF. Several
governments have adopted support frameworks to that end. However, governments must increase thereach of existing frameworks. Frameworks that mandate or incentivise fuel production and deployment
concentrate on only a few leading markets. Without additional policy ambition, the sector risks falling shortof reaching international climate objectives.

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REFERENCES

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Sustainable Aviation Fuels
Policy Status Report

International Transport Forum
2 rue André Pascal
F-75775 Paris Cedex 16+33 (0)1 73 31 25 00
contact@itf-oecd.org
www.itf-oecd.org

This project has received funding from theEuropean Union’s Horizon 2020 research andinnovation programme under grant agreement
No. 101021600.

Published: 07/2023 | Photo credit: aappp/Shutterstock

The aviation sector has pledged to become climate neutral by 2050.
Sustainable Aviation Fuels (SAFs) are the only available low-carbon
fuel technology for air travel today. They are thus indispensable forthe sector to reach its climate targets. This report presents
recommendations to promote the production and deployment of SAFs,
which can replace conventional, fossil aviation fuel to reduce carbon
dioxide emissions from aircraft. The insights come from discussions
in the ITF’s Decarbonising Aviation Common Interest Group, an expert
forum on SAF policies bringing together government and industry
representatives.