New Delhi, June 7 (AHN) Global production of Sustainable Aviation Fuel (SAF) is expected to reach just 2.4 million tonnes in 2026, accounting for only 0.8 per cent of total aviation fuel consumption, highlighting the growing challenge facing the airline industry's decarbonisation efforts, according to estimates released by the International Air Transport Association (IATA).

The industry body said airlines are expected to spend around $4.3 billion on SAF this year, even as production remains far below the levels required to meet the sector's long-term climate goals.

Commenting on the outlook, Willie Walsh, IATA's Senior Vice President Sustainability and Chief Economist, said the pace of SAF development remains disappointing five years after the aviation industry committed to achieving net-zero carbon emissions by 2050.

He noted that SAF is projected to account for less than 1 per cent of airline fuel use in 2026, making the pathway to meeting around 65 per cent of future fuel needs through SAF increasingly difficult.

Walsh attributed the slow progress to ineffective government policies and what he described as a lack of interest from oil companies in expanding production capacity.

He added that recent energy market disruptions should have accelerated investment in renewable fuels but have not translated into the incentives needed to create a viable SAF market.

IATA has called for coordinated action to accelerate the growth of sustainable aviation fuels.

The association said governments and industry stakeholders need to expand renewable energy supplies, ensure open access to fuel infrastructure, strengthen production incentives and investment frameworks, and support the development of a global SAF market with sufficient volumes and commercially viable pricing.

The organisation also stressed the importance of establishing a global "book-and-claim" system, which would allow airlines and fuel producers to participate in the SAF market regardless of location while supporting harmonised standards and fair competition.