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The International Air Transport Association (IATA) anticipates that Sustainable Aviation Fuel (SAF) production will reach 2 million tonnes, equivalent to 0.7% of total airline fuel consumption by 2025. Willie Walsh, IATA's Director General, stated, "While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs. And even that relatively small amount will add $4.4 billion globally to the fuel bill."
In Europe, the cost of SAF has doubled due to compliance fees following new mandates from the EU and UK implemented on January 1, 2025. For one million tonnes of SAF required for these mandates in 2025, market prices suggest a cost of $1.2 billion with an additional $1.7 billion from compliance fees.
"This highlights the problem with the implementation of mandates before there are sufficient market conditions and before safeguards are in place against unreasonable market practices that raise the cost of decarbonization," Walsh commented.
