Advances in Sustainable Aviation: SAF and Regional Cooperation

The sustainable future of aviation was at the center of discussions during ALTA Aviation Law Americas with the panel "Overcoming Environmental Challenges in Aviation"

(Source: ALTA)

Experts discussed the progress made in the availability of sustainable aviation fuels (SAF), the industry's environmental commitments, as well as the legal implications and the need for regulatory harmonization, which are essential to ensure an effective transition in the aviation sector.

Milena Fajardo, Director of Fuels and Sustainability at ALTA, moderated the panel and highlighted that, in order to face the environmental challenges of aviation, it is crucial to prioritize a policy of incentives for SAF, instead of mandates. "Latin America and the Caribbean face specific and particular circumstances such as pollution trajectories, purchasing power and the level of passenger traffic that only represents 5.8% worldwide - which make it necessary for our countries to implement roadmaps that are different from other developed countries. Therefore, authorities must consider all the necessary aspects so that public policies are the most in line with local realities," added Fajardo.

The need for cooperation between industry and governments was reinforced by Oracio Marques, IATA’s Regional Director for External Affairs and Sustainability for Latin America and the Caribbean. He explained that this partnership is essential to overcome regulatory and operational challenges, promoting the use of SAF as a key piece in the environmental roadmap. “We have to reinforce the need to balance the regulation of SAF exports in countries such as Brazil, Paraguay and Colombia, ensuring that internal and external demand is adequately met.”

Carolina Betancort, Manager of New Biorenewable Businesses at BioD SA, highlighted the potential of Latin America for SAF production, given the access to raw materials. According to Betancort, a strong regulatory framework, financial incentives and public-private partnerships are essential to make these projects viable in the region.

The relevance of the role of ESG diagnostics in the creation of regulatory frameworks adapted to the realities of each country was addressed by Eliseo Llamazares, Partner and Leader of Aviation at KPMG. “Today, the need for international financing and favorable tax policies to make SAF projects viable in Latin America indicates that legal uncertainty is a challenge that must be overcome to attract investors.”

For Eduardo Macedo, Director of Public Affairs and Institutional Relations at LATAM Brazil, regional integration represents a competitive advantage for Latin America and the Caribbean. However, the estimated cost of SAF production remains high. “The sector is committed to achieving zero emissions by 2050 and we are participating in several initiatives to meet this challenge. Everyone recognizes that the motivations for sustainability are directly related to this process. Although they are significant, we must consider other measures, such as operational efficiency, air traffic optimization, development of new technologies and, especially, carbon offsets to achieve neutrality.”

Despite significant challenges, experts highlighted that Latin America has enormous potential to lead the transformation of sustainable aviation. With vast natural resources and privileged access to raw materials, the region can become one of the main global hubs for SAF production. However, to realize this potential, regulatory and economic barriers will need to be overcome, such as the creation of robust legal frameworks and the provision of fiscal and financial incentives.

Source: ALTA.


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