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Airlines vs Europe:  the green challenge sparks controversy

By Friday, 09 June 2023 08:00

Willie Walsh, the director general of IATA, made a bold statement during the association's annual general assembly in Istanbul, saying that it would not be inappropriate to label Europe as being opposed to aviation. In doing so, he directly criticized the management of the European Union regarding the sustainability of air transport.

Walsh specifically addressed the Green Deal 2050, which sets the ambitious goal of achieving zero CO2 emissions by that deadline, and also expressed his reservations about the ReFuelEu programme.

European regulations pertaining to sustainable aviation fuels (SAF) mean that airlines have to use SAF, which undeniably results in lower carbon emissions compared to conventional fuels. However, the current cost of SAF is approximately two to four times higher. The ReFuelEu programme outlines a gradual implementation plan, requiring all flights departing from EU airports to adhere to specific SAF quotas: 2% by 2025, 6% by 2030, 20% by 2035, 34% by 2040, 42% by 2045, and 70% by 2050.  

But this progression presents a significant challenge due to the limited availability of SAF. In 2022 SAF production accounted for a mere 0.1-0.15% of the total fuel required by airlines. While increased production of SAF is expected to reduce its price, airlines may temporarily pass on some of the additional expenses to airfares, which means to passengers. Undoubtedly a formidable hurdle that must be overcome in order to meet the sustainability goals set forth. 

According to IATA, a more effective approach to increasing SAF production or implementing tax incentives, similar to the Inflation Reduction Act introduced by the United States, would be preferable. Willie Walsh also emphasized the need for a global system that enables airlines to purchase SAF for other users, even if they do not utilize it for their own aircraft. Furthermore, IATA plans to introduce a tracking tool to monitor the quantity of SAF purchased and utilized by carriers, aiming to enhance accountability throughout the industry. 

Walsh concluded by saying that “the roadmaps for decarbonizing aviation are not solely the responsibility of airlines. Governments, suppliers, and financiers must also actively participate and contribute to the journey of aviation decarbonization. They too are stakeholders in this ‘game’.”


Mariella CattaneoMariella Cattaneo
Journalist

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