Australia’s government maps out 2050 sustainable aviation plan, New Zealand urged to follow

As part of a new Aviation White Paper mapping out the nation’s air transport strategy to 2050, the Australian government has announced a package of measures to help advance production and use of sustainable aviation fuel and other low carbon liquid fuels (LCLF). Central to the government’s sustainable aviation plans are increased research into production pathways for new fuels, consideration of incentives for domestic feedstock and fuel production, and protocols to track and verify the green credentials of SAF and renewable diesel. Neighbouring New Zealand is also exploring measures to help decarbonise aviation as part of stage 2 of its national Emissions Reduction Plan and has sought industry feedback. In a joint response, the airline and airport sectors welcomed the focus on air transport but said the plan lacked concrete steps to develop appropriate policies. They urged the government to work towards regional solutions, specifically by mirroring Australia’s LCLF consultation process with industry.

The Aviation White Paper, ‘Towards 2050’, released by Transport Minister Catherine King, says with Australia’s large landmass, dispersed population and geographical isolation, there are “limited practical substitutes” for air transport in many parts of the country. But it adds that air transport must reduce its carbon emissions as part of the broader national commitment under the Paris Agreement to reduce total domestic greenhouse gas emissions by 43% below 2005 levels by 2030 and says that by early next year Australia is expected to submit a 2035 emissions reduction target.  

“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,” says the White Paper. “Therefore, in the short to medium term, the Australian government is focusing its action on measures to support the supply of SAF, including considering support options aimed at establishing a domestic production industry.”

The government has commited to consult with the aviation industry and community on production incentives and demand-side measures for LCLFs, but specifically excludes blending mandates, arguing that it needs to better understand their likely impact on demand for new fuels, emissions reductions, air ticket prices and regional air operations.

By 2028, it will expand the national Guarantee of Origin Scheme to authenticate the production credentials of new fuels and will align the certification arrangements with international standards.

LCLF production technologies using new feedstock sources will also become eligible for support through the AUD1.7 billion ($1.1bn) Future Made in Australia Innovation Fund, in addition to AUD30 million ($20m) already allocated to support production of SAF and renewable diesel from feedstocks sourced in Australia. Among the potential feedstocks identified by the country’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) in its SAF Roadmap are sugar cane and sorghum, while agricultural and forestry residues including stalks, leaves, husks, woodchips and branches have also been listed as suitable low value products for use as biofuel feedstocks.

Although the White Paper prioritises SAF and LCLF production, it also highlights grants to progress research and development of new low-emission technologies such as electric and hydrogen propulsion, establishment of the National Reconstruction Fund Corporation to help finance projects including renewables and low emissions technologies, and expansion of the Regional Airports Programme to help fund infrastructure that supports the transition to net zero aviation.

“The Australian government recognises the need to provide certainty for the aviation industry,” said Minister King. “Fifteen years after the release of the previous Aviation White Paper, this publication sets out the government’s long-term policy vision to deliver a safe, competitive, sustainable, productive and efficient Australian aviation sector out to 2050.”

In New Zealand, a request by the government for comments on its draft Emissions Reduction Plan 2 (ERP2) has attracted responses including a joint submission from the New Zealand Airports Association (NZAA), Board of Airlines Representatives in New Zealand (BARNZ) and IATA, calling for a more proactive strategy to reduce aviation’s carbon emissions.

“It does not adequately address aviation decarbonisation needs and lacks identification of the required steps to develop an enabling policy framework for this,” says the group, which collectively represents 46 airports, 26 airlines which fly to, from and within New Zealand, and associated businesses including ground handlers, catering providers and waste management companies.

The group urges establishment of a domestic SAF industry, and for the government – led by Prime Minister Christopher Luxon, a former CEO of Air New Zealand – to be actively involved in developing the sector. 

“Government sees its main role for the aviation and maritime sectors as facilitating industry discussions through existing forums, considering regulatory barriers and ensuring New Zealand’s interests are represented appropriately on the international stage,” says the group. “These are important roles, and we support such a focus.

“However, we believe there remains a role for government to also consider the need for robust Public Private Partnership or other appropriate co-investment (for example, the Regional Infrastructure Fund) or incentivisation models to facilitate the development of a domestic SAF production industry, while protecting any relevant Crown investment.

“While we recognise a material proportion of New Zealand’s future SAF requirements will need to come from overseas, appropriate levels of domestic production will not only deliver economic growth and employment opportunities for regional New Zealand but will also help ensure security and resilience in our aviation fuel supplies.

“Appropriate co-investment or other incentivisation models will align economic incentives with the national interest in economic growth and productivity and unlock the private investment at scale necessary for domestic SAF production and the emergence of a credible market in support of climate transition.”

The airports and airlines submission also highlights the recent agreement between the New Zealand and Australian governments to collaborate more closely on measures including climate response and urges the New Zealand government to prioritise consultation with the air transport industry on progressing LCLF policy, mirroring a similar process announced in Australia.

“Work should begin now to evaluate the content of Australia’s consultation documentation, and any New Zealand analysis that would be needed to adapt it to our context,” says the group. “This process would then be informed by Australia’s policy decisions once its consultation is complete, as a basis for New Zealand to either align or diverge from those decisions where this may be appropriate for our context.” 

Tony Harrington

Correspondent

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