Sustainable Aviation Fuels in focus at ICAO Aviation Climate Week

Breakthroughs and partnerships for success 

The second day of in-depth discussions at ICAO Aviation Climate Week revealed how rapid transformations are driving the scale-up of Sustainable Aviation Fuels (SAF), Lower Carbon Aviation Fuels (LCAF), and other aviation cleaner energies. They also explored the challenges in reaching the necessary levels of production and deployment.

Panelists reviewed how regulatory frameworks adopted in major markets are already contributing to increased production, de-risking investments, and accelerating the deployment of sustainable aviation fuels, in accordance with ICAO’s technology-neutral approach.

Many saw opportunities in evolving regulations that welcome technology and feedstock diversity, highlighting that decarbonization performance is measured through traceability and robust certification, with growing recognition that scaling requires significant investment and capacity building. 

Spotlight on solutions 

Speakers focused on solutions, calling for policy frameworks that anchor long-term investments while adapting to change. Multilateral cooperation and collective efforts to support digital traceability, feedstock diversification, and capital stability were underscored as essential, as was engagement anchored in the full implementation of ICAO frameworks and agreements.

In this context, the central importance of ICAO’s ACT-SAF programme was highlighted, especially as it has moved beyond feasibility studies into direct business implementation support.  

The programme has already delivered 18 studies and has 17 additional projects underway. Panellists also addressed the massive financing challenges in scaling SAF to the required levels, potentially requiring $3.2 trillion by 2050. They welcomed the ICAO Finvest Hub initiative, which connects projects with funds and de-risks development, and called for financial solutions and strong partnerships throughout the supply chain.

Discussions explored the difficulty of securing finance at scale in developing markets, the uncertainty and increased costs created by regulatory fragmentation, and the high price of SAF for many airlines, which is compounded by mandates alone not generating sufficient demand at viable price points. Additionally, investors face obstacles ranging from feedstock uncertainty to a lack of bankable offtake agreements.

Speakers pointed to many promising developments. SAF aggregators are exploring long-term contracts to share risk, while development banks are taking on pioneering projects and resolving local barriers through direct engagement. A shift toward performance-based policy is set to support greater innovation and flexibility. 

Aligning around the way forward 

The panellists highlighted that meeting the challenges will require more harmonized and flexible ICAO governance. Financial risk and reward should be shared across the value chain, with mechanisms to recycle compliance revenues into support. Affordable finance, especially for developing states, and performance-based policy to reward real carbon reduction were also seen as crucial necessary. The speakers called for stronger incentives and more bankable offtake agreements to become standard. They also stressed that ongoing dialogue among ICAO and its Member States, financiers, and private actors will maximize the impact of pioneering projects.

This reflected the final point addressed in today’s discussions: partnerships underpin every successful SAF projects. Panelists stressed that airlines play a key role, but early alignment among all stakeholders, including regulators and producers, is necessary to establish feasible pathways for technology and feedstock. New public-private investment models are gaining traction, particularly where public funds are used to de-risk early stages and mobilize private capital. This collaborative approach is increasingly supported by both voluntary and compliance carbon markets, which are also directing new resources toward SAF projects.

ICAO Climate Aviation Week (Day 2) – 3 June 2026