Aviation industry urges New Zealand to adopt sustainable aviation fuel policy framework

The New Zealand SAF Industry Roundtable, including airlines, airports, and fuel suppliers, has presented five principles to the government to guide sustainable aviation fuel (SAF) policy. They want clear leadership, coordination across agencies, and clarity on how SAF fits under the Emissions Trading Scheme. Australia's recent A$1.1 billion commitment to low-carbon fuels is a backdrop, with New Zealand facing a choice between domestic production and relying on imports or Australian supply. Industry estimates suggest a 30% domestic SAF blend by 2050 could add $1.3 billion in value and 5,700 jobs, but delay could cut benefits by about $1 billion. The report also flags potential ticket price increases of $0.60-$2.30 on short-haul routes unless policy manages costs. Z Energy and Boeing disagree on local production feasibility, with Z leaning on trans-Tasman supply while Boeing sees domestic industrial potential. The principles stop short of mandates or subsidies, focusing on next steps and investment conditions.