top of page

Subsidise Sustainable Aviation Fuel Production in Australia

Updated: 6 days ago





Reported by: Perrin Theocharides and Christopher Noonan

Publish date: 23 January 2025



Read the brief here:

Problem Identification: 

Investment in the domestic sustainable aviation fuel (SAF) industry is associated with significant economic risk. 


A report from ICF International argues that considerable up-front costs and a lack of guaranteed returns dissuade stakeholders from investing in the SAF industry.


This means that investment in the domestic SAF industry may struggle to attract sufficient capital. Without adequate funding, the development and expansion of SAF production could be stalled, reducing the industry's ability to lower aviation emissions and achieve sustainability targets. This means that Australia may need to depend on SAF imports from other countries which could raise costs, slow progress toward environmental goals, and weaken the security of energy supply chains.


Context: 

Solution Identification: 

Advice: 


Download the 1-page policy brief PDF here:




 

Public Support: 


Where to go to learn more: 


  1. ICF International, & Qantas Group: Developing a SAF Industry to decarbonise Australian Aviation – read the full report here

  2. CSIRO: Sustainable Aviation Fuel Roadmap – read the full report here

  3. Airlines for Australia and New Zealand: An Australian Roadmap for Sustainable Flying read the full report here


Reference list:

  1. Airlines for Australia and New Zealand. (2023). An Australian Roadmap for Sustainable Flying. https://www.a4anz.com/documents/221207%20-%20A4ANZ%20Net%20Zero%20Roadmap%20-%20Compressed.pdf

  2. Australian Renewable Energy Agency. (2018). Australian Renewable Energy Agency. https://arena.gov.au/

  3. Australian SAF project by Oceania Biofuels scrapped | SAF Investor. (2024). SAF Investor. https://www.safinvestor.com/news/145442/oceania-biofuels-scrapped/ 

  4. CEFC. (2019). Clean Energy Finance Corporation (CEFC). https://www.cefc.com.au/ 

  5. Internal Revenue Service. (2024). Clean Fuel Production Credit. US Government.  https://www.irs.gov/credits-deductions/clean-fuel-production-credit 

  6. CSIRO. (2023). Sustainable Aviation Fuel Roadmap

  1. DCCEEW. (2022). Net Zero. Dcceew.gov.au. https://www.dcceew.gov.au/climate-change/emissions-reduction/net-zero 

  2. Schapova, N. (2024, May 4). Electric aeroplanes are already in our skies, so when will they become the norm? ABC News. https://www.abc.net.au/news/2024-05-05/electric-aeroplanes-aviation-industry-shrink-carbon-emissions/103796074

  3. IATA. (2023). SAF Deployment. https://www.iata.org/contentassets/d13875e9ed784f75bac90f000760e998/saf-policy-2023.pdf

  4. ICF International, & Qantas Group. (2023). Developing a SAF Industry to decarbonise Australian Aviation. https://www.qantas.com/content/dam/qantas/pdfs/qantas-group/icf-report-australia-saf-policy-analysis-nov23.pdf

  5. International Air Transport Association. (n.d.). Developing Sustainable Aviation Fuel (SAF). https://www.iata.org/en/programs/sustainability/sustainable-aviation-fuels/

  6. Department of Climate Change, Energy, the Environment and Water. (2022). Net Zero. https://www.dcceew.gov.au/climate-change/emissions-reduction/net-zero

  7. RenewEconomy. (2024, July 15). Oceania Biofuels pulls $500m Gladstone project as another bubble bursts.

  1. Owens Thomsen, M., & Mistry, H. (2023). Media Briefing: Update on Sustainable Aviation Fuels (SAF) (A. Block, Ed.). IATA.

  2. University of South Australia. (2024). Renewable aviation fuels prepare for take-off in Australia. https://www.unisa.edu.au/media-centre/Releases/2024/renewable-aviation-fuels-prepare-for-take-off-in-australia/



Conflict of interest / acknowledgment statement: 

N/a


Support 

If your organisation would like to add your support to this paper, or suggest amendments, please email Info@foreaustralia.com


Disclaimer

FORE Australia provides policy briefs as part of its mission to inform public policy and support positive social change. These briefs are based on research, analysis, and expert opinions available at the time of publication. However, FORE Australia makes no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of the information contained within any policy brief. The information and recommendations provided are for general informational purposes and do not constitute legal, financial, or professional advice.

 

Limitation of Liability

FORE Australia, its affiliates, officers, directors, employees, and agents accept no liability for any direct, indirect, incidental, or consequential loss or damage arising from reliance on or use of information contained in these briefs. Readers are advised to independently verify any information before acting upon it. FORE Australia disclaims any liability for errors or omissions and reserves the right to update, amend, or retract any published material without prior notice.

 

External Links and References

Policy briefs may include links to external websites and references to third-party sources. FORE Australia is not responsible for the accuracy or content of these external sources and does not endorse any third-party information, services, or products mentioned in our briefs.

 

Support for Legislative Measures and Policy Actions

FORE Australia advocates for specific legislative measures and policy actions based on careful research and alignment with its mission. While FORE Australia endorses certain actions, implementation and outcomes are beyond its control, and it disclaims responsibility for the direct or indirect effects of any legislative or policy changes influenced by its recommendations.




16 views

Comments


Commenting has been turned off.
Logo options (17)_edited.png

FORE Australia would like to acknowledge Aboriginal and Torres Strait Islander peoples as the Traditional Custodians of the land we live, learn and work on.​

 

We value their cultures, identities, and continuing connection to country, waters, kin, and community. We pay our respects to Elders, both past and present, and are committed to supporting the next generation of young Aboriginal and Torres Strait Islander leaders. This always was and always will be Aboriginal land. 

 

As an organisation dedicated to amplifying solutions, we recognise that First Nations peoples have long identified many of the pathways for environmental protection and meeting community needs. Our role is to listen, support, and amplify these voices.

Questions / comments? 

Email us at info@foreaustralia.com

---------------------------

Content Guidelines

ACN: 681 117 135

bottom of page