Sustainable fuel mandate could help cut aviation emissions
The Albanese government is considering introduced blending mandates, targets for sustainable aviation fuel or low-carbon fuel standards to try and help the hard-to-abate sector cut its carbon emissions.
While countries around the world are moving to reduce emissions from the aviation sector, the Albanese government’s green paper released on Thursday admitted sustainable aviation fuel (known as SAF) was expensive and not produced anywhere near the scale to replace traditional jet fuel.
Blended fuel could help the aviation industry lower its carbon emissions.
Aviation currently generates about 2.5 per cent of the world’s carbon emissions, with domestic aviation accounting for about 7 per cent of emissions from Australia’s transport sector.
The green paper said SAF would be needed to help airlines with their obligation under the government’s safeguard mechanism to reduce carbon emissions by 4.9 per cent a year to 2030.
SAF is blended with conventional jet fuel in ratios of up to 50 per cent to ensure compatibility with aircraft fuelling systems, but the industry wants to boost this towards 100 per cent.
The International Air Transport Association, which represents 300 airlines and 83 per cent of air traffic, has committed to net zero by 2050, while Qantas has committed to a target of 10 per cent SAF in its overall fuel mix by 2030.
But SAF currently costs up to four times more than conventional fuel. The green paper says the federal government should consider a number of options to boost its use in Australia, including new refining capacity.
Options under consideration include introducing blending mandates, low-carbon fuel standards or the setting of public targets for future SAF consumption to provide a clear demand
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