NEW DELHI: Global sustainable aviation fuel production is expected to double to reach 2 million tonnes in 2025 compared to the previous year, according to the International Air Transport Association. 

In a press statement issued during IATA’s Annual General Meeting, Director General Willie Walsh noted that the projected 2 million tonnes of SAF will account for just 0.7 percent of total fuel consumption this year.

The use of SAF has been increasingly prominent in recent years, as most countries have set stipulated targets to achieve net zero as part of their energy transition efforts. 

“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7 percent of aviation’s total fuel needs,” said Walsh. 

He added: “And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate.” 

The IATA official further stated that sufficient government measures, including the implementation of effective policies, are needed to meet decarbonization efforts. 

He added that ensuring the success of the Carbon Offsetting and Reduction Scheme for International Aviation is crucial to offsetting carbon emissions in the aviation sector. 

Under CORSIA, an initiative launched by the International Civil Aviation Organization, airplane operators must purchase and cancel “emissions units” to offset the increase in CO2 emissions. 

“Advancing SAF production requires an increase in renewable energy production from which SAF is derived. Secondly, it also requires policies to ensure SAF is allocated an appropriate portion of renewable energy production,” said IATA in the statement. 

In a separate statement, IATA said that $1.3 billion in airline funds are blocked from repatriation by governments as of the end of April.

The industry body, however, noted that this figure also represents a 25 percent improvement compared to the $1.7 billion reported for October. 

The aviation body also urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.

“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements and increase exchange rate risks,” said Walsh. 

He added: “Economies and jobs rely on international connectivity. Governments must realize that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed.”