1、Joint Policy Proposal to Accelerate the Deployment of Sustainable Aviation Fuels in Europe A Clean Skies for Tomorrow Publication W H I T E P A P E R O C T O B E R 2 0 2 0 In Collaboration with the Energy Transitions Commission Contents Executive Summary Overview of recommended SAF ramp-up policy pa

2、ckage Introduction Action is needed now Seven policy pillars for a more sustainable EU aviation ecosystem 1 The imperative to ramp-up SAF uptake 2 Sourcing SAF from Europe 2.1 Crop-based biofuels 2.2 Residual and waste lipids biofuels 2.3 Lignocellulosic and biowaste biofuels 2.4 Recycled carbon fue

3、ls 2.5 Power-to-liquid fuels 3 Timeline for SAF production ramp up 4 Policy support for SAF ramp up 4.1 General design principles 4.2 Specific policy recommendations for EU and UK 4.3 Four priorities for supporting the development and early deployment of SAF 4.4 Driving SAF demand 5 Concluding remar

4、ks Signatories Contributors Endnotes 3 4 5 5 6 8 10 11 12 13 13 14 15 16 17 18 18 20 21 22 23 24 Cover: Unsplash/Kumiko Shimizu Inside: Unsplash/Jordan Sanchez; Unsplash/Danist; Getty images/ollo; Getty images/greenleaf123; Unsplash/Joakim Honkasal; Unsplash/Inspirationfeed 2020 World Economic Forum

5、. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, or by any information storage and retrieval system. Joint Policy Proposal to Accelerate the Deployment of Sustainable Aviation Fuels in Europe2 Execu

6、tive Summary The World Economic Forums Clean Skies for Tomorrow (CST) initiative, established in 2019, is a community platform for leaders throughout aviations value chain to facilitate the transition to net-zero flying by mid-century. The CST Coalition is a public-private partnership that is drivin

7、g a shift to zero-emissions aviation through sustainable aviation fuels and other clean propulsion technologies. In the context of the European Green Deal, the European members of the CST community have developed a joint strategy for accelerating the transition to climate neutrality in aviation in E

8、urope, with a particular focus on increasing the uptake of sustainable aviation fuel (SAF) over the next decade. Despite the COVID-19 pandemic, they remain committed to working with policy-makers to advance that agenda. Aviation now accounts for 3.6% of total greenhouse gas (GHG) emissions in the EU

9、 and its contribution is set to continue to increase in the coming decades without coordinated action from industry and policy-makers. While a range of interventions will be necessary to seize all opportunities to reduce emissions from aviation and reverse this trend, including technology improvemen

10、ts and breakthroughs, there is at present an urgent need to specifically support the uptake of sustainable aviation fuel (SAF). SAF is indispensable to achieve carbon neutral aviation, especially for long-haul flights. It has the significant financial advantage of not requiring any major new equipme

11、nt or infrastructure investment, as it can be blended with conventional jet fuel. Todays commercial production is, however, only approximately 0.05% of total EU jet fuel consumption1 and the current pace of growth is nowhere near what it should be to meet Europes climate objectives. The key issue cu

12、rrently preventing the production and use of SAF from taking off is the price gap between fossil-based jet fuel and SAF, which remains prohibitively large. The SAF supply chain faces a “chicken and egg” problem with supply and demand: costs will come down if production scales up (thanks to learning

13、curve effects and economies of scale), but fuel providers are lacking a strong demand signal to increase production and demand is low due to the high price premium. Joint Policy Proposal to Accelerate the Deployment of Sustainable Aviation Fuels in Europe3 In this context, European CST members recom

14、mend the following package of policies to support the technological development and early deployment of SAF (priorities 1-3) and drive up SAF demand (priority 4). While support to fuel providers is vital to increase production volumes over the next 10 years, it will be insufficient to provide a stro

15、ng business case for the development of SAF plants at an industrial scale in the absence of robust demand signals providing some certainty on future demand levels. 1. Support innovation to bring lignocellulosic/ biowaste and power-to-liquid pathways to market. Given limits on future supply of feedst

16、ock, scaling up SAF uptake in Europe to meaningful levels will not be possible by relying exclusively on the technology pathways that are commercially available today. Therefore, further research and development support is required for the technologies with the highest potential for cost disruption

17、and with the most sustainable sources of feedstock i.e. biofuels from lignocellulosic feedstocks and power-to- liquid pathways. 2. Support SAF provision through price floors guaranteed by government during the early stages of deployment. The existence of a market for SAF is currently limited due to

18、the price difference between SAF and conventional jet fuel. Policy mechanisms to secure a price floor for SAF output will be crucial for making new SAF plants economically viable, especially in the early stages of deployment while regulations incentivizing SAF demand (e.g. fuel mandates) are not yet

19、 in place. 3. Support early deployment by de-risking investment in the first wave of production facilities. Even in a favourable policy context, investment in first-of-a-kind production facilities will entail a level of technology and commercial risks that lead to high financing costs and long timel

20、ines to raise capital for SAF plants. This will likely remain true for the following wave of projects during the first decade of SAF deployment. Different forms of public financial support from public investment funds, national government, regional development banks and international financial insti

21、tutions should be used to help de-risk these projects and secure upfront private capital investment. 4. Announce in 2021 a SAF blending mandate for European aviation to be enforced no later than 2025 with a blending level increasing progressively through 2050. The obligation should initially apply t

22、o intra- European Economic Area (EEA) flights, ideally encompassing the EU and the UK. This will serve as a powerful incentive to boost production and secure investment in SAF. Public financial support will be required to compensate for the effect of competitive distortions, especially on intra-EEA

23、feeder flights. Additional measures will, however, be needed by 2030 at the latest to ensure the decarbonization of long-haul aviation. Further work will be required to determine the exact appropriate design of such a blending mandate as well as appropriate levels of blending through time given the

24、feasible ramping up of SAF production. Overview of recommended SAF ramp-up policy package As the European Union and the UK refine their strategy to deliver on their respective net-zero emissions targets, it is crucial that they establish a coherent and decisive policy package, including public finan

25、cial backing, to simultaneously drive up SAF production and consumption and unlocking cost reductions that will benefit the whole aviation sector. To this end, European CST members have devised a policy package to support the adoption of SAF in Europe that includes measures aimed at increasing SAF s

26、upply and demand. It is vital that these policies work hand in hand to simultaneously boost production and consumption of SAF in a strategic and sequenced manner and that they are coherent with the technically feasible pace of production ramp up to avoid supply bottlenecks and price volatility. A co

27、herent policy package for SAF should also be feedstock and technology neutral to allow for a range of bio-based and synthetic SAF production routes, only distinguishing fuels based on technology maturity levels (with greater support required for earlier-stage technologies) and on appropriate lifecyc

28、le carbon emissions and broader sustainability requirements (especially in terms of land use and biodiversity impact). Given supply constraints, sustainable bio-feedstocks should be prioritized for use in aviation as alternative decarbonization options are extremely limited. The key to driving up in

29、vestment in SAF production is to provide fuel providers and their financiers with greater certainty on future markets. In 2020, the EU Commission and the Government of the UK should announce aviation policies to be enforced in the second half of the decade. This would incentivize investment in SAF p

30、roduction plants over the next five years. Policy frameworks should then remain in place for at least 10-15 years to ensure projects have a solid long-term business case. Joint Policy Proposal to Accelerate the Deployment of Sustainable Aviation Fuels in Europe4 Introduction The CST initiative is a

31、coalition of leading airlines, airports, manufacturers and fuel providers working together to find solutions for reaching net-zero emissions from global aviation by mid-century. It provides a crucial platform for top executives to align on a transition pathway for the industry to achieve carbon-neut

32、ral flying and to take practical steps towards that goal. It is a key element of the Mission Possible Platform a broader international coalition working to decarbonize harder-to-abate heavy industry and transport sectors. Over the last year, the European members of the CST community have developed i

33、n partnership a strategy for accelerating the transition to carbon neutrality in aviation in Europe, with a particular focus on developing pathways to accelerate the uptake of sustainable aviation fuels (SAF) over the next decade. The European CST members welcome the European Commissions European Gr

34、een Deal initiative and support the EUs target of net-zero emissions by 2050. This community paper was jointly developed to outline agreed key guiding principles for European policy-makers to consider as they prepare EU and national budgets to support the European economic recovery and as they start

35、 drafting EU Renewable Fuels regulations for aviation. This document lays out a set of policy recommendations that can accelerate the uptake of SAF in Europe by 2030 and outlines a coherent set of supply-side and demand- side measures necessary for the success of the European Green Deal with regards

36、 to aviation. The Clean Skies for Tomorrow Coalition stands ready to exchange with the Commission, Member States and MEPs on our recommendations.2 This proposal was initially developed prior to the COVID-19 pandemic. The aviation industry finds itself in a difficult economic situation due to the exc

37、eptional circumstances caused by the global pandemic, which has brought most major economies to a standstill. The immediate priority for the sector is to navigate this challenge. It will take several years for the aviation industry to recover from this unprecedented downturn. Decarbonization, howeve

38、r, remains a critical issue for the future of aviation and should remain the horizon towards which airlines, airports, manufacturers and fuel providers continue to progress, with the support of government. European members of the Clean Skies for Tomorrow initiative remain committed to working with p

39、olicy-makers to advance that agenda. The economic stimulus packages that Member States and the European Union will need to implement to support the recovery of the European economy over the next five years can contribute to advancing the low-carbon transition of European aviation. The recommendation

40、s outlined in this note can be implemented in that context. Implications of the COVID-19 pandemic Before the COVID-19 pandemic, emissions from aviation accounted for approximately 2.5% of total global energy-related CO2 emissions, more than the entire national contributions of Brazil or Germany.3 Th

41、is share was even higher in the EU, where aviation accounts for 3.6% of total GHG emissions.4 Global emissions are expected to recover from the current crisis and continue to grow, increasing by 83% to reach 1.8 Gt CO2 per annum by 2050, with approximately 10% coming from the EU.5,6 Changing this tr

42、ajectory is essential to ensure that aviation plays its role in delivering the Paris climate agreement objectives. It will require collective action from governments and industry players throughout the entire aviation value chain. Policies to support the transition to net-zero emissions in aviation

43、must be devised within an overarching strategy for decarbonizing passenger and freight mobility in the EU. This should encourage greater system efficiencies throughout different transport modes and optimize for emissions reduction throughout the full mobility system (e.g. with regards to the allocat

44、ion of limited sustainable bio-resources between sectors). This includes encouraging modal shifts to ensure passengers use low-carbon transport options as a priority wherever possible. This paper encourages the European Commission to ensure new policies relating to aviation are consistent with a gen

45、eral framework for ensuring carbon neutrality throughout the continent by 2050. For aviation, there will be no “silver bullet” decarbonization solution. The industry will need to rely on a range of measures that will work hand in hand: carbon compensations in the short to medium term (e.g. via the E

46、U ETS and Carbon Offsetting Action is needed now Joint Policy Proposal to Accelerate the Deployment of Sustainable Aviation Fuels in Europe5 and Reduction Scheme for International Aviation (CORSIA), efficiency improvements (including through optimized air traffic management and improved aircraft tec

47、hnology) as well as a shift to low and eventually zero-carbon energy sources. CST members are committed to doing their part in decarbonizing aviation and are working alongside other stakeholders, including policy-makers, to shape a cost-effective pathway to net-zero emissions by mid-century. Policy

48、support at the EU level is crucial for the entire industry to meet this objective on time in Europe. It will also enable Europe to pursue an ambitious SAF pathway and support the aviation sectors global transition by accelerating technology development and cost reductions. 1. Create a new long-term

49、policy framework to support the production and consumption of SAF in Europe. For reasons detailed below, SAF will play a crucial role in decarbonizing aviation in Europe and globally, as it will remain the main driver of carbon emissions reductions in aviation for the foreseeable future. The European Green Deal and the economic recovery stimulus package developed in its wake represents a unique window of opportunity to support the rapid acceleration of SAF uptake in Europe. The rest of this document is therefore focused specifically on this subject. 2. Support the de