The air freight industry is on a crossroads regarding sustainability. While airlines and logistical enterprises are committed to reducing their carbon footprint, one of the biggest roadblings remains the availability and scalability of sustainable aviation fuel (SAF).
This issue took the center during a panel discussion at the World Cargo Summit (WCS) in East, where the leaders in the industry addressed the challenges of SAF adoption and what should happen to make it a viable solution to the future .
The gap between SAF Ambitions and reality
SAF is widely promoted as the key to the unbundling of aviation, which offers up to 80 percent lower carbon emissions compared to conventional jet fuel. However, the reality is strong – the current production levels are nowhere near that is needed to meet world demand. With the European Union instructing a 2 percent SAF mixture by 2025 and striving by 65 percent by 2050, the industry faces an supply crisis.
Anna-Maria Kirchner, head of global sales, Finnair Cargo, emphasized that although there is sufficient SAF to meet today’s requirements, it will be very difficult to comply with the future mandates. “We need more refineries, more technological advances and a broader mixture of feeding agents to produce SAF effectively,” she noted.
One of the most important barriers to SAF adoption is its high cost. Currently, SAF is two to five times more expensive than traditional jet fuel, making it financially unenforceable for many airlines and cargo operators. Dr. Fabiano Piccinno, Air Logistics Global Head of Sustainability, Kuehne + Nagel, emphasized that although airlines are willing to invest, they cannot bear the financial burden alone. “Governments should provide incentives, subsidies and policy frameworks that make SAF a cost-competitive alternative,” he explained. Drs. Francine Carron, founder, ESG-Consultance NV, pointed out that although corporate clients demand greener solutions, they are not always willing to pay the premium for SAF-driven transport.
“In principle, commitments are strong, but the industry needs mechanisms that make green choices economically viable,” she said. Another major challenge is the lack of SAF production facilities. Currently, the majority of SAF is produced using waste cooking oils and animal fats, but this nutritional supply is limited.
The panelists agreed that the industry to truly scale SAF should investigate alternative sources, such as: Power-to-Liquid (PTL) Technology-which creates synthetic SAF using captive carbon and renewable energy. Algae-based fuel-a promising long-term solution with a high energy density and sustainability potential. Biomass-to-liquid (BTL) processing conversion of forestry and agricultural waste in sustainable fuel. However, the build -up and certification of these new production methods will take years, if not decades.
The panel highlights the urgent need for investment in R&D to accelerate SAF development. SAF adoption is also hampered by inconsistent global regulations. While Europe has taken a leading role in maintaining SAF mandates, other regions do not have clear policies. This inequality creates uncertainty for airlines and logistics providers working on international markets. “We need global alignment over SAF incentives and regulations,” Kirchner urged.
“A fragmented approach will delay progress and increase the costs. ‘
Scope 3 emissions
One of the most urgent issues raised during the discussion was Scope 3 Exhibition, which is responsible for the indirect emissions of the supply chain partners. Many logistical businesses struggle to accurately measure and report these emissions, making it difficult to set realistic reduction targets.
Piccinno emphasized the need for greater collaboration between airlines, cargo exhibitors and regulators to create transparent reporting frameworks. “If we do not have the industry in the industry in the 3-output industry, sustainability efforts will remain fragmented,” he warned.
What should happen?
The panel agreed that the solution of SAF availability crisis requires a multiple approach, including: increased government support -policy that subsidizes SAF production and reduces the cost -gap with conventional fuel. Investment in alternative feeding agents-knit beyond waste oils out to more scalable options such as synthetic and algae-based fuel. Stronger operating collaboration – Airlines, logistics providers and regulators must work together to create solutions for supply chain. Mechanisms for clearer carbon prices – to ensure that customers understand the true cost of emissions and encourage greener choices.
