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SAVi Report

Friday 23 February 2024 in Regulation , SAF , SAVi Fives

SAVi Five: Singapore’s 1% 2026 SAF mandate, Swiss looks at SAF mandate, and more

Eduardo Mariz
Senior Analyst at Ishka
eduardo@ishkaglobal.com
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Five noteworthy aviation sustainability developments in the past seven days curated by the Ishka SAVi team.

Here are the new developments to keep in mind:

1. Singapore to require 1% SAF by 2026 and 3-5% by 2030 – Singapore has published its long-awaited blueprint to create a sustainable air hub, which sets out Singapore’s action plan for the decarbonisation of its aviation sector. The Sustainable Air Hub Blueprint, developed by the Civil Aviation Authority of Singapore (CAAS) in consultation with industry and other stakeholders, will be submitted to ICAO this month as part of Singapore’s State Action Plan to achieve net zero aviation emissions by 2050 (see this recent ICCT briefing for a better understanding of aviation decarbonisation State Action Plans). The full document is available to download here, but was unavailable at the time of writing.

The most distinctive policy of the Blueprint is the introduction of a SAF mandate, something that Singapore – which hosts the largest SAF production facility in operation today – has been teasing for some time. The main features of this SAF requirement will be determined in 2025 pending consultations with more stakeholders, but the current proposal calls for:

  • “Aiming” for a 1% SAF target in 2026 and raising the target to 3-5% by 2030 (subject to global developments and the wider availability and adoption of SAF)
  • Introducing a “fixed quantum” SAF levy for the purchase of SAF to achieve the uplift target of each year. “The SAF levy will not change, even if the actual SAF price differs from what is projected. Instead, the actual uplift volume of SAF will be adjusted based on the pre-determined SAF levy and prevailing SAF price.”
  • From a passenger perspective, the levy will vary based on factors such as distance travelled and class of travel. A 1% SAF uplift in 2026 could increase ticket price for an economy class passenger on a direct flight from Singapore to Bangkok, Tokyo, and London by around S$3, S$6, and S$16 (in USD, $2 to $12) respectively. Passengers in premium classes will pay higher levies.

In addition to the SAF mandate, the Blueprint also calls for air traffic management operational improvements to increase efficiency, efforts to reduce energy use and deploy renewables at Singapore’s flagship Changi airport, and five policy and support enablers. Another Singapore-related development this week (announced to coincide with the Singapore Airshow) is the MoU between Airbus and the Singapore Economic Development Board (EDB) to facilitate the establishment of an Airbus Sustainable Aviation Hub in Singapore with a specific focus on technology, research, and innovation.

2. Switzerland looking at SAF mandate from 2025 – Switzerland on 21st February approved the postulate report on carbon neutral flying by 2050, setting out technical measures for climate-friendly aviation. The primary approach to reducing carbon emissions involves the use of SAF, which a revised CO2 Act would be “making it mandatory to blend” from 2025. The report notes that “hydrogen-fuelled and electric aircraft can only marginally reduce emissions” up to 2050, and in order to achieve net-zero carbon sequestration and storage (negative emission technologies) will be required. The full report can be accessed here (in German).

3. New FAA rule incorporates ICAO New Type emissions limits for aircraft produced from 2028 – The US Federal Aviation Administration (FAA) has released a final rule to reduce CO2 emissions by most aircraft manufactured after 1st January 2028. The rule requires incorporating improved fuel-efficient technologies for in-production aircraft, and for subsonic jet airplanes and large turboprop and propeller airplanes that are not yet certified. The main component of the rule is the implementation of Environmental Protection Agency (EPA) standards introduced in 2021, which in turn “are the same” as those adopted by ICAO in its airplane CO2 emissions standards (known as the New Type limit). Readers may be familiar with the New Type limit from the EU Taxonomy criteria for aviation, as the eligible aircraft being financed must comply with emissions margins to that limit.

4. A4E asks EU not to ‘rush’ Single European Sky legislation – Europe’s largest airline association, Airlines for Europe (A4E), has expressed “concern” about the current negotiations of the Single European Sky (SES2+) legislation, “in particular the negative consequences that will arise if policymakers rush to adopt the file for the sake of completion before the European elections.” SES (or SES2+ in its current form) is a long-overdue reform of the air traffic management system in most of Europe with the ambition to increase efficiency and reduce the environmental impact of air traffic. Meanwhile, elections to the European Parliament are due in June 2024. The association raises a number of concerns around “compromises currently under discussion” that could result in “increased complexity” contrary to the spirit of the legislative initiative.

5. DNV report: UK to miss climate targets with aviation to blame – Norwegian risk management firm DNV has published an 88-page report examining the UK’s transition to Net Zero by 2050. It notes that the UK is currently on course to miss its 2030 targets and its legally binding 2050 net zero target. “We forecast that despite this strong [energy mix] shift, a third of the UK primary energy supply will still be fossil fuels by mid-century, dominated by their remaining unabated use in household heating and aviation.” Aviation will replace road transport as the single largest consumer of oil, more than doubling its share by 2050, the report notes.

Tags: Aircraft, EU, ICAO, SAF mandate, Singapore, Single European Sky, Switzerland, UK, US

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