IATA: Growth in SAF Production Set to Slow in 2026

Trade group blames mandates in the U.K. and Europe.

Zach Vasile

Monday, December 15, 2025 at 03:10 PM ET

Verified

Edited By:

Ryan Ewing

An employee of a ground service company refuels an aircraft. [Credit: Shutterstock/Karolis Kavolelis]

Key Takeaways:

Sustainable aviation fuel (SAF) production is projected to fall short of targets in 2025 and experience slower growth in 2026, according to the International Air Transport Association (IATA).
IATA blames "poorly designed" SAF mandates and policy frameworks in Europe (like ReFuelEU Aviation) for market distortion and significantly increasing SAF costs, making it up to five times more expensive than conventional jet fuel.
The trade association urges governments to shift from mandates to production incentives to increase the global supply of SAF and drive down its prices.
Insufficient SAF production and rising costs threaten airlines' commitments to adopt SAF, potentially forcing them to reevaluate their 2030 targets.

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Growth in the production of sustainable aviation fuel (SAF) will fall short of projections this year and slow down in 2026, the International Air Transport Association (IATA) reported this week.

The trade group estimates that SAF production will reach 1.9 million metric tons in 2025, almost double the amount made in 2024. But that figure will fall short of IATA’s initial estimates for the year, and in 2026, growth in production is expected to slow to 2.4 million metric tons.