Can US and EU leadership unleash sustainable aviation fuel?

Sustainable Aviation Fuel (SAF) is a carbon reduction option that exists today with proven technology pathways. The fuel meets performance standards, and it is safe. Importantly, SAF offers significant potential for decarbonisation without the need to modify existing infrastructure. When used neat it can reduce life-cycle emissions by up to 80% compared to conventional jet fuel*.

The USA and EU have shown leadership, and this week, representatives from the world’s governments, will meet to agree (or not) to adopt a more ambitious decarbonisation goal for the aviation sector. In my view, it’s an opportunity to set the decarbonisation direction and accelerate the deployment of SAF to meet that goal.

The proposal being presented at the International Civil Aviation Organisation (ICAO) Assembly is for member states to work together, to agree a long term – global – aspirational, goal for international aviation, to achieve net-zero carbon emissions by 2050, inline with the Paris Agreement.

Shell supports the increased ambition. We have ourselves adopted a goal of 10% SAF sales by 2030.

Three elements could unleash the potential of SAF:

1. Joined-up policy packages that creates the market and links customer demand to supply.

A combination of the United States' SAF Grand Challenge Roadmap that sets out the pathway, and the US Inflation Reduction Act providing the necessary support, could put the US in a leading position to deploy SAF at scale.?This is an example of a market creating a policy package that covers supply, demand and technology.

Decarbonisation needs to be commercially viable for governments, businesses and customers. A policy package that stimulates demands, sets standards and offers financial incentives are the signals the private sector can make decisions.

2.?Flexibility in feedstocks allows accelerated ramp-up during the transition to bring emissions down this decade.

The EU is also leading the development of a SAF industry, and Shell is building one of Europe’s largest production facilities at the company’s Energy and Chemicals Park in Rotterdam. We support the EU policy proposals in this area. We encourage EU institutions to be ambitious in their goals, and to help deliver results through a measure of bio-feedstock flexibility that still meets strict sustainability criteria.

I believe that as well as ‘the stick’ that these mandates provide, European industry would benefit from more ‘carrots’ in the form of incentives. Time-limited flexibility on feedstocks would avoid lost time in deploying SAF, allowing for action now and preventing the perfect being the enemy of the good.

In short, I believe that allowing a wider range of sustainable feedstocks and technologies is needed to get SAF working at scale this decade.

3. Global alignment on standards and free trade creates a fluid market and customer confidence

To really make decarbonisation work for aviation, or other commercial transportation like shipping, you would benefit from global alignment on standards, carbon accounting and ideally free trade to allow for efficient movement of feedstock, fuel, technology and expertise. Here the world is struggling, but if the ICAO Assembly can agree to raise its ambitions, it will be a significant signpost for an industry that is keen to catch up on its climate action.?The structure and standards across markets will need to follow.

As we approach #COP27 and countries contemplate their commitments, we encourage them to talk with the aviation community and get SAF off the ground. You can read more about Shell’s view of decarbonising aviation and other sectors of the economy here.

Shell’s Sectors & Decarbonisation business

Shell is transforming its business to help lead change in the energy industry and accelerate decarbonisation. Shell has created a Sectors & Decarbonisation business that drives technical and commercial leaders to work more closely with their customers to develop pathways that will help decarbonise sectors of the global economy.

At Shell Sectors & Decarbonisation, we aim to help our customers avoid, reduce and mitigate their emissions through innovations, partnerships and policy incentives. We believe this will reduce costs, provide the incentives for new infrastructure, and stimulate customer demand.

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* IATA,?Sustainable Aviation Fuels