Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF

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Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
Sustainable Aviation
Fuels
ISCC – Stakeholder Dialogue

Wastes, Resides and Advanced Low Carbon Fuels.

Shanghai – 2nd July 2019

Robert Boyd – IATA, Environment - SAF
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
Aviation and the
energy transition
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
10 years ago the aviation industry established a
plan to address its emissions
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
Anti-aviation on the rise?
Following a relative lull in activity 2011-
2015, now starting to see aviation the
focus of climate activists again
Post-Paris Agreement / IPCC1.5ºC
Special Report
Mainly a European message… for now
• #Flygfritt2019 / #Flygskam /
  #FlightFree2019
• #Flyingless (academics)
• Stay Grounded network
• A surge in young activism
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
The potential financial implications
                                                              2100 – 325 = 1775 m/t**
                                       2.5 billion tonnes     @ $5/t = $8.9 billion p/a
                                       $40 billion USD*       @ $16/t = $28.4 billion p/a
                                                              **Estimates for illustration

                                                                              2100 m/t

                                                                                         325 million
                                                                                         tonnes

Source: ATAG / IATA / ICAO estimates                        *$16 USD/tonne mid range ICAO carbon offset estimate for illustration purposes
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
CORSIA
  2.5b                                      2019
tonnes of CO2 will                        Binding standards   Carbon Offsetting and Reduction
  be mitigated                               apply since      Scheme for International Aviation
    by 2035                                1 January 2019
                                                              The aim of CORSIA is to cap the net
                                                              CO2from aviation to 2020 levels

                     $40b                                     Scheme is intended to operate from
                                                              2021-2035
                     will be generated                        79 States have volunteered for the
                     in climate finance                       pilot phase
                           by 2035
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
CORSIA: Offsetting or SAF
                                                            Each company must
                                                            compensate for emissions
             Actual emissions
  Baseline                                                  above its baseline with
                                                            emission reductions
                                                            achieved elsewhere or
                                                            sustainable aviation fuel

    Total
    CO2
                   Total
                   CO2                                    CORSIA Eligible Fuel (CEF)
                                                          SAF or LCAF
                                                          Must meet ICAO sustainability criteria

                                Emissions reduction = 3.16 ∗                ∗ GHG benefit

                                              Emission factor for Jet A-1
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
The brief history of SAF… some milestones

               LCA reduction   Key questions
10 years ago     10%-20%       Will it hurt the engines?
                               Will it affect aircraft performance?
                               How do we certify this?
                               Is it safe?

5 years ago     30%-40%        What policies are needed?
                               How to verify sustainability?
                               Can the business case work?
                               Test flight or Off-take?
  Today         60%-80%        How do we engage customers?
                               Strategy – compliance today vs. fuel mix of the future
                               Where is the money to scale up?
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
Sustainability - Airlines                         Sustainability and policy
                                                  considerations
June 2017, Cancun - The International Air         ICAO Sustainability Criteria: CORSIA
Transport Association (IATA) 73rd Annual
General Meeting (AGM) approved a resolution       Regional policy sustainability criteria inc REDII
calling for governments to implement policies
to accelerate the deployment of sustainable
aviation fuels (SAF).
5. Endorses the continuing efforts of its
member airlines and other industry
stakeholders to develop, test and deploy into
commercial operations cost competitive SAF
which conserve an ecological balance by
avoiding the depletion of natural resources, as
an important element of the industry’s overall
approach to address CO2 emissions from
aviation;
Sustainable Aviation Fuels - Shanghai -2ndJuly 2019 Robert Boyd -IATA, Environment -SAF
SAF: Fact check
•   185,000 commercial flights since 2011
•   5 technical SAF pathways certified & 4 more
    pre-2020
•   Growing locations offering daily flights
•   2018 SAF volume = approximately 0.01% of
    total fuel demand
•   A number of major construction
    announcements in the past 18 months
•   Approximately 6 billion SAF liters in forward
    purchase agreement
•   More than 40 airlines have developed
    experience using SAF
•   13% of major commercial airlines. Is this
    enough?
Global SAF activity – preparing for the future
Next stop: achieving the tipping point
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