Singapore: The global aviation industry is struggling to move towards cleaner fuels as high costs and limited supply slow the use of sustainable aviation fuel, the head of the industry’s main trade body said on Monday, reports The Economic Times.
International Air Transport Association (IATA) Director General Willie Walsh said progress on sustainable aviation fuel, or SAF, has been slower than expected. He was speaking at the Changi Aviation Summit in Singapore, held ahead of the Singapore Airshow.
Walsh said SAF production reached about 1.9 million tonnes in 2025, accounting for only 0.6 per cent of total jet fuel use worldwide. He added that this figure was lower than earlier estimates, highlighting the gap between targets and actual supply.
SAF is seen as a key option to reduce emissions from aircraft, but Walsh said its high cost remains a major challenge. He said the price of SAF is more than double that of conventional jet fuel and can rise to as much as four times higher in regions where airlines are required to use it.
Walsh also said mandatory blending rules, which force airlines to use a fixed share of SAF, have increased costs and reduced interest from airlines that might otherwise choose to use the fuel voluntarily. In the European Union, airlines are now required to use at least two per cent SAF in their fuel mix, with the requirement set to rise to six per cent by 2030, 20 per cent by 2035 and 70 per cent by 2050.
In Singapore, the Civil Aviation Authority announced a voluntary trial on Monday aimed at increasing SAF use. The authority has signed an agreement with nine companies, including Google, Temasek and Singapore Airlines, to buy SAF through a central purchasing system set up by the regulator.
The trial supports Singapore’s plan to expand the use of cleaner aviation fuel. From October 1, all flights departing Singapore will be required to include one per cent SAF in their fuel mix. To fund the higher fuel cost, a levy will be imposed, which is expected to raise air ticket prices.
Singapore plans to increase the SAF share to between three and five per cent by 2030, in line with targets set by the International Civil Aviation Organization.
