IN-DEPTH

Executive Summary

The global shift towards renewable energy, particularly solar and wind, offers valuable insights for the aviation sector's transition to sustainable aviation fuel (SAF). Analyzing the successes and failures of policies supporting these renewable energy markets can guide the development of effective governmental strategies for SAF, although sector-specific considerations and local contexts will always play critical roles.

Over the past 30 years, solar and wind energy have achieved significant growth due to a strategic mix of technology-push and demand-pull policies. This growth has driven innovation, investment, cost reductions, and the widespread deployment of renewable energy infrastructure, making solar and wind viable alternatives to conventional fossil fuels.

The analysis highlights the importance of well-designed policies in developing renewable energy markets. Key lessons for the aviation industry's energy transition include:

▪  The importance of creating energy policy frameworks tailored to local conditions and supported by international cooperation.

▪  The positive impact of strategic policy sequencing on the creation of a new energy market, with technology-push policies leading and demand-pull measures following.

▪  The importance of early and substantial governmental R&D support, a crucial element to foster competition and diverse solutions, with market-based policies implemented as technologies mature.

▪  The necessity for all supply chain stakeholders to be subjected to predictable, long-term, and as globally harmonized as possible policies.

▪  The urgent and substantial practical and financial need to support emerging economies in the development of new energy markets.

These observations are essential for the widespread production of SAF, which is crucial for the decarbonization of the air transport industry, necessitating coordinated efforts and urgent government support to achieve this goal.