Corporate purchases of Sustainable Aviation Fuel (SAF) environmental attribute certificates could support between 1 million and 1.9 million tonnes of SAF annually by 2030, up from an estimated 323,000 tonnes in 2024, according to a new study by the International Air Transport Association (IATA), Airbus and Accenture.
The study highlights corporate demand as a potential
catalyst for increasing SAF production, provided barriers such as unclear
carbon accounting rules, high prices and complex purchasing processes are
addressed.
SAF can significantly reduce aviation emissions compared
with conventional jet fuel. However, global production in 2026 is expected to
reach only 2.4 million tonnes, equivalent to 0.8% of total jet fuel
consumption. SAF also remains two to three times more expensive than
conventional jet fuel.
The report proposes expanding corporate participation
through SAF Environmental Attribute Certificates (EAc), allowing companies to
support the additional cost of sustainable fuel and claim associated emissions
reductions for business travel and air cargo under their Scope 3 emissions
targets.
A robust book-and-claim system would enable companies to
claim SAF-related emissions benefits regardless of where the fuel is physically
delivered and consumed.
“SAF is aviation’s most important decarbonization lever, but
airlines cannot shoulder the cost of scaling it up alone. Corporate buyers have
a unique opportunity to help build the SAF market, contribute to the cost of
air transport’s energy transition, and benefit from recognized scope 3
emissions reductions in the process. The potential is substantial, but it will
only be realized if companies can participate with confidence, knowing that
their contributions will count and that the process is simple and credible.
Getting these foundations right will help unlock investment, grow the market,
and accelerate SAF production,” said Marie Owens Thomsen, IATA’s Senior Vice
President Sustainability and Chief Economist.
Julien Manhes, Vice President, Sustainable Aviation Fuel and
Carbon Dioxide Removal Development at Airbus, said corporate demand could
provide the certainty needed to encourage investment in production capacity.
"This study clearly demonstrates that corporate demand
is a powerful, untapped catalyst for scaling SAF. By giving corporate buyers
the accounting certainty they need to co-fund the SAF premium, book-and-claim
can transform potential interest into firm commitments, sending the near-term
demand signal fuel producers need to accelerate production and lower costs
across the industry," said Julien Manhes, Vice President, Sustainable
Aviation Fuel and Carbon Dioxide Removal Development, Airbus.
Cost and accounting barriers remain
Despite the potential, corporate participation remains
limited. The study found that only around 15% of surveyed companies currently
purchase SAF certificates, with many waiting for prices to fall, carbon
accounting rules to become clearer and procurement processes to simplify.
SAF EAc typically cost between $150 and $500 per tonne of
carbon dioxide equivalent (CO2e) emissions avoided, while companies report a
willingness to pay closer to $300.
Airlines account for approximately 53% of corporate SAF
certificate purchases, making them the largest source of certificates for
companies seeking to address emissions associated with business travel and air
freight.
Jesko Neuenburg, Global Aviation & Travel Sustainability
Lead at Accenture, said airlines should develop the capabilities needed to
recover SAF costs and prepare for future market growth.
"SAF will do most of the heavy lifting on aviation
decarbonization, but airlines and a select group of corporates cannot carry its
cost all the way to 2050. Only around 15% of surveyed corporates are purchasing
today, but the majority are waiting for the price to come down, for the carbon
accounting to settle, and for the buying process to get simpler. Airlines that
establish SAF cost-recovery capabilities now will be best positioned when
growth in the SAF EAc market accelerates. The opportunity today is to focus on
the sectors where demand is already emerging, making SAF attributes simple and
transparent to buy, and invest in the systems, partnerships, and customer
relationships that can scale as the market matures,” said Jesko Neuenburg,
Global Aviation & Travel Sustainability Lead, Accenture.
Three priorities to unlock demand
The study identifies three priorities for expanding
corporate participation: clear and consistent accounting rules to ensure
emissions reductions are recognised; transparent, interoperable tracking
systems to prevent double counting and protect environmental integrity; and
simpler purchasing mechanisms, including greater price transparency, lower
minimum purchase volumes and shorter contract durations.
The organisations also stressed that corporate purchases
alone will not deliver the scale of SAF required to decarbonise aviation.
Government support, effective incentives and substantial increases in
production capacity will remain essential.
“Corporate participation alone will not deliver the scale of
SAF that aviation requires. Continued government support, effective incentives
and a significant expansion of production capacity remain essential. But every
additional corporate purchase converts climate ambition into real market demand
and helps distribute the cost of decarbonization more broadly. The next step is
making participation easier, more accessible and more credible for companies of
all sizes,” said Owens Thomsen.
The study concludes that clearer rules and accessible
purchasing systems could help translate corporate climate commitments into
demand, supporting investment and accelerating the development of the SAF
market. -TradeArabia News Service