Airlines for Australia and New Zealand (A4ANZ) has welcomed the Australian Government’s commitment to work with industry on policy settings to support domestic sustainable aviation fuel (SAF) production, while stressing that affordability and international competitiveness must remain central to the framework.
The airline industry group said establishing a local SAF sector could support the long-term decarbonisation of Australian aviation while strengthening fuel security, creating jobs and generating regional economic opportunities.
Affordability central to Australian SAF policy
A4ANZ said the emerging industry would need both demand-side and supply-side policy support, with measures designed to ensure Australian SAF can compete with international production.
The association cautioned that keeping SAF affordable and limiting additional costs for passengers, consumers and the broader economy should be a priority as the government develops its policy approach.
“Australia has a significant opportunity to build a globally competitive SAF industry that supports jobs, regional development and national fuel security, while helping aviation meet its decarbonisation goals,” A4ANZ CEO Stephen Beckett said.
“The right policy settings, including appropriate phasing, and alignment with existing climate and energy frameworks, will be essential to deliver an industry that is affordable for consumers, commercially viable and globally competitive.”
SAF a key aviation decarbonisation tool
A4ANZ said its airline members are already investing in emissions reduction measures including fleet renewal and operational efficiencies, with SAF expected to be the most significant long-term lever for reducing aviation emissions.
Beyond aviation, the association said domestic SAF production could contribute to Australian energy security, regional economic development and corporate emissions reduction efforts.
For the travel trade, the shape of future SAF policy will be significant because production costs and policy requirements have the potential to flow through to airline operating costs and, ultimately, airfares.
Airlines to participate in SAF consultation
A4ANZ confirmed it would work with government and industry as options for a demand-side measure are considered.
“We will engage throughout the consultation period to advocate for policy architecture that supports a sustainable, competitive and affordable local SAF industry,” Beckett said.
The consultation comes as the aviation sector continues to examine how SAF production can be scaled while balancing emissions reduction targets with the cost and accessibility of air travel.
