TotalEnergies’ CEO, Patrick Pouyanne, highlighted on January 21 at the World Economic Forum conference that airlines are reluctant to pay for Sustainable Aviation Fuel (SAF) due to its high costs. For that reason, the CEO expects the European Union (EU) sustainable aviation fuel mandate will be dropped soon.

SAF represents a pivotal alternative and key tool in decarbonizing air travel. The aviation industry accounts for an estimated 2–3% of current global CO₂ emissions. Dr. Hannah Ritchie, a researcher on long-term environmental change, notes in her article that aviation has contributed to about 4% of total global warming by 2024, reflecting both direct emissions and their broader warming effect.

​Given this impact, the industry has sought more sustainable alternatives. According to the U.S. Department of Energy, SAF “is an alternative fuel made from non-petroleum feedstocks that reduces air pollution from air transportation.” Compared with conventional jet fuel, SAF can cut lifecycle emissions by up to 80%, as noted in a 2025 Swinburne University of Technology study.

Yet, despite this promise and governments’ promotion of SAF production through incentives, mandates, and funding programs, SAF production and use remain very limited, as they still face significant challenges.

Barriers to global adoption

One major challenge for SAF adoption is its higher cost compared to fossil jet fuel. The World Economic Forum notes, “SAF production is currently two to five times costlier than fossil jet fuel,” depending on technology and feedstock. This price gap directly limits airlines’ willingness to adopt SAF, as their thin profit margins make it difficult to absorb increased fuel costs without passing them on to passengers.​

Airlines opt to purchase only the mandated minimum because higher costs directly impact their operating budgets. As a result, investment has slowed, despite the company’s capacity to expand production, as TotalEnergies’ CEO mentioned at the conference.

Regulatory challenges remain significant for the industry, as global policy is a key driver of SAF adoption. As the International Air Transport Association (IATA) stated last year in a report, the EU, the United Kingdom, and other markets have established increasing mandates for the use of SAF (for example, 2% last year, increasing over the next decade) that have failed to accelerate SAF production and adoption.

Their concerns about the economic and operational viability of these goals are well-founded.  In 2025, SAF output was expected to reach 1.9 million tonnes (Mt) (2.4 billion liters), double the 1 Mt produced in 2024. However, in 2026, SAF production growth is projected to slow to 2.4 Mt, according to the IATA report.

The production is not stopping completely

Despite the challenges, the intention to have more sustainable flights remains strong; several companies worldwide are actively producing or scaling SAF.

Building on this momentum, companies across the globe are leading the way in sustainable aviation fuel production. Neste, based in Finland, is the world’s largest producer of SAF, with long-term agreements with carriers including Lufthansa and American Airlines. In the USA, World Energy operates one of the first commercial SAF plants in California and continues to expand capacity for renewable fuel supply.

There’s also Moeve, based in Spain, which in October 2025 joined Avelia, Shell’s SAF platform. In addition to Moeve, several companies (including TotalEnergies, LanzaJet, and SkyNRG), as well as oil companies such as Shell and BP (formerly British Petroleum), are investing in SAF production infrastructure.

In summary, Sustainable Aviation Fuel is essential to reducing air travel emissions, but its adoption is currently constrained by high costs, complex regulations worldwide that industry companies oppose, and uncertain market demand. Clear regulations and additional investments could be the solution to transitioning to more sustainable flights.