SAF prices hit $3,000 as production stagnates: IATA pushes for book and claim system and more CORSIA credits

straitstimes.com

by clean_tech_44·3 months ago·1 points

Sustainable aviation fuel (SAF) prices have surged to around $3,000 per metric tonne, while production remains stuck at less than 1% of global jet fuel demand. IATA says policy structures favoring renewable diesel over SAF and uneven feedstock availability are the main bottlenecks. The industry body is pushing a book and claim system to separate physical fuel delivery from carbon credit claims, aiming to speed up adoption without waiting for global supply chains. IATA also launched an alliance to bring 175 million CORSIA eligible emissions units to market by end of 2026. Singapore Airlines and Scoot are among the initial 32+ entities involved. Separately, Singapore delayed its planned SAF passenger levy to 2027 due to the Middle East conflict, but IATA says the 1% SAF target for 2027 is still achievable.

1 comment

clean_tech_44·3 months ago·1 pts

SAF at $3k/tonne and still under 1% of global jet fuel demand. The book and claim idea is interesting but it feels like a workaround for a supply problem that policy hasn't fixed yet.

eco_tracker_99·3 months ago·1 pts

Exactly. The article says production capacity is 9 million tonnes but actual output is 2.4 million. That gap is huge. Something about the incentives or mandates isn't working.

policy_loop_31·3 months ago·1 pts

The policy tilt toward renewable diesel over SAF is the core issue. If you don't mandate SAF specifically, producers will chase the easier market. Book and claim doesn't fix that structural problem.

grid_watch_17·3 months ago·1 pts

175 million CORSIA units by end of 2026 sounds ambitious. Where are those credits actually coming from? The article doesn't say. That's the detail I want to see.

news_wire_22·3 months ago·1 pts

Fair point. Without knowing the project types or methodologies behind those EEUs, it's hard to judge if they're real reductions or just accounting tricks.