Voluntary SAF Progs By Airlines Will Provide Value Proposition For Cos In Reducing Carbon Footprints: Airbus Official

 Voluntary sustainable aviation fuel programmes by airlines will provide a value proposition for corporates in reducing their carbon footprints, and feedstock collection for producing the fuel will also bring in collateral socio-economic benefits for India, according to a senior Airbus official.

European aircraft maker Airbus, which has a significant presence in India, has also pitched for bringing corporates' spending on the airlines' voluntary Sustainable Aviation Fuel (SAF) programmes under the government's CSR (Corporate Social Responsibility) framework.

Globally, the requirement for SAF is estimated at 183 million tonnes by 2040.

Julien Manhes, Head of SAF and CDR (Carbon Dioxide Removal) Development, Sustainability Organisation at Airbus, said a voluntary scheme for SAF will be an "opportunity for airlines to differentiate and to propose something new to their corporate customers first, then to cargo customers and eventually to private customers".

India is one of the world's fastest-growing civil aviation markets, and Indian carriers have placed orders for more than 1,700 aircraft. As part of sustainability efforts, the government will soon be coming out with a SAF policy.

Elaborating on the value proposition of having the voluntary SAF programmes, Manhes told PTI in an interview in the national capital that the idea is about selling business travel experience with not only good seats and meals but also with a "lower carbon footprint".

In the context of the airlines' grouping, IATA's view that SAF blending mandates without incentives is a "no-go area", Manhes opined that creating voluntary demand for SAF will not result in market distortion.

He observed that airlines are reluctant to opt for SAF schemes without incentives because they will incur more costs as the fuel itself comes at a higher cost.

"Voluntary demand is not a market distortion. It is an add-on," he noted.

India aims to have 1 per cent blending of SAF in jet fuel by 2027, 2 per cent blending by 2028 and 5 per cent blending by 2030. SAF can be used as a drop-in fuel in Aviation Turbine Fuel (ATF), which powers aircraft.

Manhes said the idea is to help airlines in India to develop a mechanism and products for voluntary SAF programmes, and then make sure that the demand materialises.

"If a corporate can fulfil its CSR obligation, even partially through SAF purchase, then the incentive is obvious," he added.

Under the Companies Law, a certain class of profitable corporates are required to shell out at least two per cent of their three-year average annual profit towards CSR activities in a financial year.

Manhes also said that feedstock collection for SAF will be a huge opportunity for collateral socio-economic benefits, and that applies to India like any other country.

India has more than 750 million tonnes of available biomass and nearly 213 million tonnes of surplus agricultural residue. Utilisation of feedstock for SAF production is also expected to help farmers increase their income.

A recent study by the International Air Transport Association (IATA), in partnership with Worley Consulting, said that India can emerge as a significant centre for sustainable aviation fuel production in South Asia, and the country's potential biomass feedstock for the fuel is projected to be 100 million tonnes by 2030.

"Regulations, targets, mandates, whatever you call it, will not get us to where we need to be to reach net zero in 2050... You need voluntary demands, " he emphasised.