The Market Tools and Financial Mechanisms Scaling Sustainable Aviation Fuel
Sustainable aviation fuel (SAF) offers the quickest way to decarbonize flight, reducing lifecycle emissions by up to 80%. However, increasing production requires more than just advances in fuel technology. As Gene Gebolys, Founder and CEO of World Energy, explains, new market tools like SAF certificates and Book and Claim systems are transforming how companies invest in cleaner aviation, mobilizing capital, bridging supply and demand, and speeding the industry's transition to net zero.
The Importance of Aviation and Its Environmental Impact
Aviation connects people and goods worldwide, generating over US $4.1 trillion in annual turnover, which is about 3.9% of global GDP. Despite these benefits, aviation contributes more than 2% of global emissions. With growing demand, finding solutions to reduce its environmental footprint is critical.
Sustainable Aviation Fuel (SAF) as a Key Solution
SAF is a biofuel produced from renewable materials such as agricultural waste, fats, oils, greases, and certain cover crops. It presents the fastest route to significantly cut emissions from aviation—up to 80% over its lifecycle.
Beyond Fuel Innovation
To successfully scale SAF, innovation must include market tools and financial mechanisms. These approaches help overcome the mismatch between limited SAF supply and increasing demand, facilitating broader adoption.
"New market tools such as SAF certificates and Book and Claim systems are reshaping how companies invest in cleaner flight – mobilising capital, bridging supply and demand, and accelerating aviation’s transition towards a net zero future." – Gene Gebolys, Founder and CEO of World Energy
These instruments are essential to connect investors and consumers with SAF producers, enabling growth in production capacity and sustainable aviation practices.
Summary
Scaling sustainable aviation fuel requires both advanced biofuels and innovative market mechanisms that enable investment and supply-demand balance for a net-zero aviation future.
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