The aviation industry is accountable for 2.5% of global CO2 emissions. The sector needs to decarbonise to meet Paris Agreement goals and minimise the worst impacts of climate change. While efficiency measures, zero emission technologies (hydrogen and electric) and carbon removals will play a key part, Sustainable Aviation Fuel (SAF) has the greatest potential to reduce aviation emissions over the medium term.

Countries around the world have set net zero aviation targets by 2050, including the UK, US and EU member states. The UK will soon require airlines to use 10% SAF by 2030 and c. 75% by 2050 – which will provide a clear demand signal for the market.

UK SAF plant developers find it difficult to access finance due to the associated price, technology, and feedstock risks. The GFI has been working to address these key risks, working at the nexus of industry, finance and government, to develop solutions that can crowd in private capital and so seed the UK SAF production industry.

Aviation is hard-to-abate because it requires a radical reimagining of the whole sector – from the aircrafts themselves to their means of propulsion. SAF, can deliver up to 80% greenhouse gas emissions reductions compared to current fuels in use around the world, with no hardware changes, allowing airlines to continue flying their existing fleet. However, pathways to secure investment for advanced, sustainable SAF are currently not mobilising sufficient capital at pace nor scale. The GFI, in partnership with Breakthrough Energy has been working diligently over the last two years to convene UK government, investors, lenders, insurers, airlines, SAF developers and fuel suppliers to overcome this challenge to decarbonising aviation.