economy
Why airlines are paying more for cleaner fuel
The main ingredient in sustainable aviation fuel (SAF) is used cooking oil — and the world is running out of it. As governments push ahead with mandates to drive down carbon emissions, limited supply and higher demand are pushing prices two to five times higher than convention jet fuel. From Europe's legally binding blending mandates to Singapore's world-first passenger levy, we are seeing a global split in how nations plan to fund – and force – the transition to green flight.
TL;DR
- The primary component of sustainable aviation fuel (SAF) is used cooking oil, and its supply is becoming limited.
- Government mandates aimed at reducing carbon emissions are increasing demand for SAF.
- Limited supply and high demand are causing SAF prices to be significantly higher (2-5 times) than conventional jet fuel.
- Different global strategies are emerging for funding and enforcing the transition to green flight, including legally binding blending mandates in Europe and passenger levies in Singapore.