Global Aviation Sustainability Outlook 2026

Page 56 of 71 · WEF_Global_Aviation_Sustainability_Outlook_2026.pdf

This means that non-HEFA pathways, in particular e-fuels, would need bespoke policy support to overcome technology-specific challenges. However, such bespoke policy support should not come at the expense of other production pathways, given the aim should be to help ensure that a wide range of different SAF technologies remain potentially viable. This in turn enables governments to maintain a technology-neutral approach that is key to driving the most cost-effective SAF production pathways forward. Such an approach can help reduce the price premium of SAF on passengers and businesses, with a potential positive impact on their willingness to pay and the translation of this into stronger voluntary demand. Such a policy approach is particularly needed in markets with higher SAF mandates and e-fuel quotas (e.g. EU, UK and where governments aim to fulfil their targets through domestic production). This analysis has not looked into the geographic breakdown of SAF production capacity, but policy-makers need to consider how much SAF can realistically be produced domestically and the availability of imports, to assess which trade-offs between energy security and cost may be needed. Designing industrial policy that makes investment in SAF more attractive to developers and investors is essential to attract private capital towards aviation. This would level the playing field with other technologies and sectors, as investment in sustainable fuel plants currently looks riskier, despite SAF benefitting from a largely policy-driven global and growing market. Financial institutions should work with governments to set out clear investment criteria that policy would need to favour. At the same time, investors should come together as a community to reduce and spread risks, including through partnerships across financial institutions as well as across the industry, with airlines, airports and SAF project developers. Financiers could also consider introducing streamlined and standardized processes to report the capital provided for sustainable aviation investments. This would help governments track how quickly the gap in the $120+ billion funding needed to scale SAF production to 2040 is being reduced; as well as highlighting any additional interventions that could further accelerate capital deployment. Global Aviation Sustainability Outlook 2026 56
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