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European airlines face challenges meeting sustainability targets due to sustainable aviation fuel shortfall

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European airlines face challenges meeting sustainability targets due to sustainable aviation fuel shortfall
Policy
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European Airlines | Official Website

Recent developments in the aviation industry highlight the challenges European airlines face in meeting sustainability targets due to a shortfall in sustainable aviation fuel (SAF). The International Air Transport Association (IATA) defines SAF as fuel derived from non-fossil sources, such as biofuels. These fuels must meet criteria related to emissions and resource use.

In Europe, airlines have committed to using SAF to reach net-zero carbon emissions by 2050. Notably, Virgin Atlantic operated a flight from London to New York using 100% SAF in 2023. This move is part of broader efforts where blending SAF with jet fuel allows for gradual integration without requiring major infrastructure changes.

A breakthrough came when Firefly Green Fuels developed SAF from human waste, gaining attention for its sustainability potential. Wizz Air signed a deal worth nearly $1 billion for 525,000 tonnes of this SAF over 15 years starting in 2028. Meanwhile, Emirates partnered with Shell at Heathrow Airport for SAF supply.

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Despite these initiatives, production remains limited. IAG projected that only 10% of flights will be powered by SAF by 2030 due to scalability issues. A lack of government incentives and insufficient production measures are cited as barriers.

The ReFuelEU Aviation initiative aims to increase SAF usage but has reportedly led to compliance costs being passed onto airlines. IATA states: "Airlines shouldering such additional costs must be able to receive the necessary sustainability certification documents from their suppliers." With few suppliers controlling the market, costs can rise significantly.

According to IATA, "fuel suppliers are imposing compliance fees that are on average equivalent to twice the prevailing market price premium of SAF." This financial burden may force airlines to reduce their use of SAF or pass costs onto passengers. Greater collaboration is deemed essential for achieving sustainability goals.

Organizations Included in this History
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