Can SAF Make Progress in Mandates Without Incentives?

As the aviation industry aims for a net-zero carbon footprint by 2050, Sustainable Aviation Fuel (SAF) has become the most practical and scalable solution for decarbonization. Governments across Europe, North America, and Asia are implementing SAF blending mandates, requiring airlines to incorporate a specific percentage of SAF into their fuel use.

However, the International Air Transport Association (IATA) recently warned that mandates without meaningful incentives could cause more harm than good.

The Role of Incentives in SAF Expansion

Incentives help bridge the cost difference between SAF and traditional jet fuel. Since SAF production remains more expensive, governments offer incentives like tax credits, production subsidies, grants, carbon pricing, and preferential loans. These measures:

Reduce risks for early SAF projects
Attract private investment
Provide confidence for producers to increase capacity
Signal long-term policy commitment

Without these supports, SAF supply stays limited, prices remain high, and achieving blending mandates becomes significantly more difficult.

Implications for Airlines and the Industry

Airlines already face tight financial margins. Mandatory SAF blending at current prices could put additional strain on their budgets, potentially halting progress and slowing the transition to cleaner fuels.

“Mandates without meaningful incentives risk doing more harm than good.” — International Air Transport Association (IATA)

The critical issue isn’t whether mandates are needed, but whether mandates alone can achieve their goals effectively.

Author’s Summary

Successful SAF mandates depend on incentives to reduce costs and risks; without them, supply, affordability, and progress toward aviation decarbonization will face major challenges.

ResourceWise — 2025-11-07