The Australian government has unveiled a comprehensive aviation strategy extending to 2050, centred on developing sustainable aviation fuel (SAF) and other low-carbon liquid fuels as the primary pathway to decarbonise the nation’s aviation sector. Released as part of the Aviation White Paper ‘Towards 2050’, this strategy represents the most significant aviation policy reform in 15 years.
Transport Minister Catherine King emphasised the strategic importance, noting that Australia’s unique geography makes aviation irreplaceable for connecting communities and supporting economic growth. “There are limited practical substitutes for air transport in many parts of Australia,” the White Paper acknowledges, making decarbonisation efforts critical.
The strategy identifies SAF as the only mature technology currently capable of delivering meaningful emissions reductions for aviation by 2050. “Consultations have confirmed that SAF is currently the only mature mechanism capable of offering meaningful reductions in airline emissions and is the most viable pathway for aviation to meet its emissions reduction obligations out to 2050,” the White Paper states.
Central to the government’s plans are increased research into production pathways for new fuels, consideration of incentives for domestic feedstock and fuel production, and robust protocols to track and verify the green credentials of SAF and renewable diesel. The strategy specifically focuses on establishing a domestic SAF production industry rather than relying on imports.
By 2028, Australia will expand its national Guarantee of Origin Scheme to authenticate the production credentials of new fuels, aligning certification arrangements with international standards. Financial support will come through the AUD 1.7 billion Future Made in Australia Innovation Fund, alongside an existing AUD 30 million allocation specifically supporting SAF and renewable diesel production.
New South Wales has committed $100 million toward developing SAF production capabilities, with modelling suggesting SAF could account for more than half of all aviation fuel in Australia by 2050, representing a nationwide market value of $11.9 billion.
Research by Boeing and the CSIRO demonstrates that Australia possesses sufficient agricultural waste to meet 60% of the country’s jet fuel needs by 2025. However, much of this feedstock currently goes overseas for SAF production, highlighting the urgency of developing domestic processing capabilities.
Industry consultation has revealed strong support for various policy mechanisms. Qantas has advocated for an incrementally increasing SAF mandate starting at 1.5% in 2026, increasing to 28% in 2040.
