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1 Nov 2024

Econ Digest

Thailand is setting a target for sustainable aviation fuel (SAF) by 2026

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        The Civil Aviation Authority of Thailand (CAAT) is studying the implementation of sustainable fuel (SAF) by 2026 with the expectation that airlines departing from Thailand will initially be required to incorporate sustainable aviation fuel (SAF) to account for 1% of their total aviation fuel consumption (Jet A-1), and such proportion will increase in subsequent years.
        The International Civil Aviation Organization (ICAO) and the International Air Transport Association (ITATA) have set a target for the international aviation industry to achieve net zero emissions by 2050. Among the key measures to achieve such target is the adoption of SAF.
        A main feature of SAF is its ability to be blended with conventional aviation fuel in a ratio of up to 50% without having to upgrade the aircraft equipment. However, the cost of producing SAF is still 2-3 times higher than conventional aviation fuels.
        KResearch believes that the implementation of the SAF initiative must be carried out in conjunction with government support measures. Many counties, including those in Europe, the UK, and Singapore, have set the proportion of SAF to be used in conjunction with support measures such as providing production subsidies, imposing taxes to subsidize fuel prices, as well as developing the ecosystem in the supply chain, encompassing production, transportation, and consumption.

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