As Hong Kong's aviation sector looks to the future, experts emphasize that sustainable aviation fuel (SAF) policies will be crucial for its development. Chief Executive John Lee's upcoming policy address is anticipated to outline key strategies for enhancing SAF supply and usage in the region. Mark Harper from John Swire & Sons has highlighted the urgent need for government intervention to address the supply issues surrounding SAF, which is vital for reducing greenhouse gas emissions associated with aviation. Notably, 70% of greenhouse gas emissions from the conglomerate are linked to Cathay Pacific, with a staggering 98% of these emissions stemming from jet fuel.
The global landscape for SAF production is currently dominated by North America and Europe, which account for 80% of the supply, largely due to favorable tax incentives. In Hong Kong, last year's policy address included an action plan for SAF, but experts like Tracy Wong Harris from Standard Chartered stress the importance of public-private collaboration to achieve meaningful progress. Other regions have set ambitious SAF goals, including Beijing's target of producing 50,000 tonnes from 2021 to 2025 and Singapore's requirement for 1% of its aviation fuel to be SAF by 2026.
In the United States, the aim is to ramp up SAF usage from 24.5 million gallons in 2023 to a staggering 3 billion gallons by 2030. The aviation sector is responsible for approximately 2% of global CO2 emissions as of 2022, underscoring the importance of transitioning to sustainable fuel sources. However, SAF remains 3-5 times more expensive than conventional jet fuel, posing a significant challenge to widespread adoption. In 2023, Ecoceres produced 100,000 tonnes of SAF, capturing a 20% share of global production, highlighting the potential for growth in this sector. [93b815f9]