Sustainable aviation fuel production may fall short of 2030 targets, warns BCG report. A recent study by the Boston Consulting Group (BCG) indicates that global sustainable aviation fuel (SAF) production could fall short of the 2030 targets. Despite growing commitment from the industry and regulators, challenges related to infrastructure, financing, and production limit large-scale SAF development.

The report highlights that, although numerous production projects have been announced, implementation of these initiatives is progressing slowly. Factors such as raw material availability, refining capacity, and high production costs hinder the expansion of the sector. Currently, SAF represents only a tiny fraction of the fuel used in aviation, and its high cost remains a barrier to its widespread adoption.

Globally, the industry faces a lack of economic incentives and a regulatory framework that is not always consistent across regions. While some economies offer subsidies and financial support to promote SAF, others lack clear policies to encourage its development. This creates a gap in fuel availability and a risk of import dependence.

To meet the aviation sector’s decarbonization goals, BCG recommends a coordinated approach among governments, investors, and companies. The report underscores the importance of accelerating the construction of production plants, improving raw material supply chains, and fostering innovation in new technologies that reduce SAF production costs. Without a firm commitment and concrete measures, the transition to more sustainable aviation could be seriously jeopardized, affecting both the sector’s competitiveness and global climate commitments.

Source and Credits to Reuters

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