Virgin Australia and industry experts optimistic about sustainable fuels budget boost
Australia lags in the race to develop sustainable fuels – but advocates say funding in the federal budget is helping lay the groundwork to catch up.
A funding boost in the May federal budget for designing policy and regulations in the sustainable fuels industry has instilled confidence in both the refiners that will produce the fuel and the airlines that will use it.
The 2024-25 budget allocates $1.5 million over two years to conduct a regulatory impact analysis of policies designed to stimulate the development of a sustainable fuels industry in Australia, including the production of sustainable aviation fuels (SAF). The initial step will involve public consultation on various policy options for phasing in sustainable fuels.
It may not seem like much, but proponents argue that establishing a basic framework is essential to provide clear goals for both producers and consumers.
“Aviation is a hard to abate industry, and this announcement puts us closer to other overseas jurisdictions who have been working at pace to deliver a strong SAF industry,” says Christian Bennett, Virgin Australia chief corporate affairs and sustainability officer.
