The aviation sector proposes a path for Colombia to become a leader in sustainable fuels

Colombia has the opportunity to become a regional leader in the implementation of sustainable aviation fuels (SAF), provided that public policies are adopted based on technical criteria, balanced and aligned with multilateral environmental commitments.

In that context, the International Air Transport Association (IATA) presented five key recommendations to advance this process, highlighting the importance of building an ecosystem that guarantees the economic, environmental and technical sustainability of the Colombian aviation sector.

1. Avoid imposing a SAF blending mandate

According to IATA, imposing a SAF blending mandate in Colombia could lead to a significant increase in aviation fuel costs. This increase would be passed directly on to ticket prices, affecting demand and connectivity, especially on price-sensitive routes such as those connecting the Amazon, the Pacific, or the archipelagos.

In Europe and the United Kingdom, fuel oil costs have increased up to fivefold due to the implementation of mandatory blending. Therefore, public policy in Colombia should focus on strengthening infrastructure, logistics, and domestic production before imposing mandates that could affect the sector's operational viability.

2. Implement tax incentives for the production and consumption of SAF

The high cost of the SAF represents one of the main barriers to its adoption. Therefore, IATA proposes the creation of tax incentives for both supply and demand to facilitate an orderly and competitive transition.

Among the suggested measures are the exemption of VAT proportional to the fraction of SAF used by airlines and the exemption of the carbon tax when fuels that comply with international emission reduction standards are used, in accordance with the provisions of Law 1819 of 2016 and Decree 926 of 2017.

Such an incentive scheme would accelerate the adoption of SAF and consolidate Colombia as a regional leader in aviation sustainability.

“Sustainable aviation fuels will mark a turning point in how the airline industry operates worldwide. IATA is committed to supporting the Colombian government to ensure their implementation is as rigorous and efficient as possible, guaranteeing a fair, safe, and effective energy transition for the sector,”
stated Paula Bernal, Country Manager of IATA Colombia.

“We invite the National Government to identify the best development options for the SAF in Colombia, so that we can all contribute to the growth of the sector and to the economic and social development of the country in the coming years,” he added.

Source: IATA