The Australian Airports Association (AAA) and Airlines for Australia and New Zealand (A4ANZ) have welcomed the federal government’s release of consultations on fuel security and the future of Australia’s cleaner fuels industry, saying the process presents an opportunity to build a domestic sustainable aviation fuel (SAF) industry.
The AAA said the two consultations were an important opportunity to strengthen Australia’s aviation fuel resilience, support economic growth and provide the policy certainty needed to grow a domestic SAF industry.
AAA acting chief executive Natalie Heazlewood said the consultations were a positive step forward for aviation and an opportunity to get the settings right for the long term.
“This is an important step forward for the industry because it recognises that fuel security and aviation decarbonisation can complement each other,” Heazlewood said.
“Australia’s reliance on international fuel supply chains leaves us exposed to disruptions beyond our shores, and aviation needs to be part of the conversation about how we strengthen national fuel resilience.
“SAF should be treated as a national strategic priority, not only because aviation is one of the hardest sectors to decarbonise, but because developing a domestic industry can strengthen fuel security, create new economic opportunities and support regional communities.”
Heazlewood said a strong domestic SAF industry could support thousands of new jobs and attract investment across the supply chain, including in regional Australia where many of the feedstocks and production opportunities could be located.
“Airports want to see an ambitious pathway for SAF, but it also needs to be achievable. The key is getting the balance right so that demand grows alongside available supply and gives industry the confidence to invest,” she said.
“Any demand-side measure needs to be phased, developed closely with industry and avoid disproportionate impacts on regional air services and smaller airports.”
The AAA said it would review both consultation papers closely with airport members and provide detailed responses to the federal government in the coming weeks.
Building a domestic SAF industry
A4ANZ chief executive Stephen Beckett said the association welcomed the government’s commitment to consult and work with industry to establish calibrated demand-side and supply-side policy foundations for SAF production in Australia.
Beckett said building a domestic SAF industry would play a critical role in the long-term decarbonisation of air travel and strengthening Australia’s fuel security, but any policy framework needed to ensure the emerging local industry was efficient, cost-effective and able to compete with international producers.
“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,” 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.”
A4ANZ said its airline members were already investing in emissions reduction through measures such as fleet renewal and operational efficiencies, with SAF representing the most significant long-term lever for aviation’s decarbonisation.
“A4ANZ will work constructively with government and industry on a demand-side measure as we work through the options and details released by the government today,” Beckett said.
“We will engage throughout the consultation period to advocate for policy architecture that supports a sustainable, competitive and affordable local SAF industry.”
