Qantas has made recommendations to the Albanese government to consider mandates and subsidies that would drive the production of sustainable aviation fuel (SAF) in Australia.
The national carrier has argued, in response to the government’s Aviation Green Paper released in September, that domestic SAF production is key to the decarbonisation of the aviation industry.
US consultancy firm ICF predicted that domestic SAF production would create 70,000 jobs in Australia and generate $13m in annual economic benefits by 2040, according to The Australian.
The head of sustainability at Qantas, Andrew Parker, said a supportive policy framework for SAF would be critical for sustainable progression in the aviation sector in addition to the moves made by his carrier and other players.
“The recommendations we’re making combine a number of policies already implemented by other governments and have the potential to deliver significant economic benefits and fuel security in addition to reducing the industry’s emissions,” Parker said.
“Supporting markets for new fuels through policy will be critical in tackling climate change, and we look forward to working with government and the industry to capitalise on Australia’s significant advantages for SAF production like by products from Queensland sugar cane.”
Qantas has recommended the government supports new production facilities, implements a production incentive linked to carbon reduction to allow local producers to compete in the international market and tax credits and incentives for SAF producers.
The carrier also urged the government to mandate Aussie airlines source five per cent of their fuel from sustainable providers by 2030 and 28 per cent by 2040. Many of these policies have already been introduced around the globe, with Japan mandating 10 per cent of aviation fuel for international flights be SAF and the US having Blenders Tax Credits.
The government has pledged up to $2.05 billion towards fuel security in Australia, but Qantas argued that these don’t mitigate the long-term challenges for aviation as domestic refining is necessary for avoiding reliance on international supply chains.
Qantas currently sources SAF from London and has put contracts in place to start using it in California from 2025.
