{"id":9186,"date":"2022-06-12T09:00:00","date_gmt":"2022-06-12T01:00:00","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=9186"},"modified":"2022-06-12T09:36:34","modified_gmt":"2022-06-12T01:36:34","slug":"sustainable-aviation-fuel-saf-credits-sia","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/sustainable-aviation-fuel-saf-credits-sia\/","title":{"rendered":"What Is The Sustainable Aviation Fuel (SAF) Credits And How Singapore Businesses Can Play Their Part In Supporting The Environment"},"content":{"rendered":"\n

Overseas travel has once again become the buzzword in 2022 as more countries move towards living with the pandemic by restoring more international flight routes. Locally, Singapore too opened its borders to all fully vaccinated travellers from 1 April 2022 and in that short space of time, passenger traffic levels reached 1.<\/a>9<\/a>3 million<\/a>. Given the strong demand for travel again, CAAS expects passenger levels at Changi Airport to recover to 50% of pre-COVID levels<\/a> by this year.<\/p>\n\n\n\n

This turnaround in activity has given the aviation industry more impetus for its commitment to Fly Net Zero by 2050<\/a>, which is a pledge by IATA member airlines, which includes our national carrier, Singapore Airlines (SIA)<\/a>, to achieve net-zero emissions from their operations by 2050.<\/p>\n\n\n\n

This takes on greater importance in a world where global warming has led to a rise in temperatures. Hence, initiatives like the Fly Net Zero help to achieve the targets set in the 2015 Paris Agreement to limit global warming to well below 2 degrees Celsius, compared to pre-industrial levels. One of the main strategies that the aviation industry aims to use to achieve its goal is by shifting from the use of fossil fuels to Sustainable Aviation Fuel (SAF).<\/p>\n\n\n\n

What Is Sustainable Aviation Fuel <\/strong><\/h3>\n\n\n\n

According to IATA, \u201cSustainable Aviation Fuel\u201d is the term that the aviation industry uses to describe a non-conventional (fossil-derived) aviation fuel.<\/p>\n\n\n\n

SAF could be thought of as consisting of three elements: sustainable, alternative feedstock to crude oil, and fuel. It is produced from various renewable feedstocks such as municipal waste, forestry waste, and, in Singapore\u2019s context, used cooking oil or other non-palm waste oils from animals or plants.<\/p>\n\n\n\n

The chemical and physical characteristics of SAF meet all the quality and performance requirements of conventional fossil-based jet fuel. Therefore, it can also be safely mixed with the latter for up to 10% to 50%<\/a>, and be used with the same supply infrastructure without further adaptation of aircraft or engines.  <\/p>\n\n\n\n

The downside to SAF is that it can cost at least two times and up to seven times more than conventional jet fuel.<\/p>\n\n\n\n

Read Also: <\/em><\/strong>Financial Benefits For SMEs To Take A Green and Sustainability-Linked Loan<\/em><\/strong><\/a><\/p>\n\n\n\n

Why The Push For Sustainable Aviation Fuel<\/strong><\/h3>\n\n\n\n

The aviation industry as a whole in 2019 produced around 915 million tonnes<\/a>, or 2.1% of all human-induced carbon dioxide (CO2) emissions. If present trends continue, it is anticipated that demand for air passenger travel would exceed 10 billion by 2050 and carbon dioxide emissions would reach around 21.2 gigatonnes<\/a>.<\/p>\n\n\n\n

Hence, one of the ways the aviation industry aims to do its part to limit global warming is by shifting to the use of SAF to achieve net zero emissions from its operations by 2050. Moreover, the use of SAF has a few other benefits, with the first naturally being associated with its positive impact on the environment<\/strong>.<\/p>\n\n\n\n

It is predicted that SAF could reduce the overall CO2 lifetime emissions by up to 80% when compared to fossil fuels. Furthermore, because SAF has fewer impurities (such as sulphur), it can achieve even larger reductions in sulphur dioxide and particulate matter emissions than current methods. Also, in cases where SAF is produced from municipal waste, the environmental gains can be multifold. One, the use of petroleum is avoided, and two, the municipal waste which would otherwise decompose in a landfill or be incinerated could be used to power a commercial flight.      <\/p>\n\n\n\n

Aside from the environmental benefit, SAF could also be used to diversify the fuel supply<\/strong>. The airline industry, which relies heavily on fossil fuels, is often affected by regular price fluctuations of crude oil and decisions by OPEC countries. However, with SAF, fuel production is not limited to only countries with an oil field, as a range of SAF feedstock can be grown or collected in differing conditions around the world.<\/p>\n\n\n\n

Lastly, SAF could also create<\/strong> varying economic and social benefits<\/strong>. The production of SAF could bring economic benefit to developing countries that have large amounts of marginal or unviable land for food crops or other forms of feedstock, such as municipal waste. A new SAF industry in these countries would not only spur green job opportunities but also promote better waste management strategies which would otherwise be neglected.  <\/p>\n\n\n\n

Read Also: <\/em><\/strong>Lion-OCBC Securities Singapore Low Carbon ETF (ESG\/ESU): How You Can Do Good With Your Money Through Singapore\u2019s First Low-Carbon ETF<\/em><\/strong><\/a><\/p>\n\n\n\n

Singapore Would Have The World\u2019s Largest SAF Plant By April 2023<\/strong><\/h3>\n\n\n\n

Singapore, which signed the Paris Agreement in 2016, committed to reducing its emissions intensity by 36% by 2030<\/a> compared to 2005 levels.<\/p>\n\n\n\n

As such, the completion of the 1.5-billion-euro world\u2019s largest SAF refinery<\/a> (by production capacity) at Tuas by April of 2023 would further solidify Singapore\u2019s push for sustainable aviation fuel (SAF) and commitment to reduce its carbon emissions. The new plant will allow top SAF producer Neste to produce as much as 1 million metric tonnes of fuel a year.<\/p>\n\n\n\n

For now, Neste will produce 1.25 million litres of neat SAF and supply it to ExxonMobil to be blended with refined jet fuel. The blended product would then be used for a one-year pilot by the Civil Aviation Authority of Singapore (CAAS), Singapore Airlines (SIA), and Temasek. <\/p>\n\n\n\n

Businesses And Individuals Can Buy SAF Credits Directly From SIA From July 2022<\/strong><\/h3>\n\n\n\n

From July 2022, CAAS, SIA, and Temasek will launch the sale of SAF credits, which is hoped will advance the use of SAF in Singapore. A total of 1,000 credits would be up for sale from the 1,000 tonnes of neat SAF that would be blended, delivered, and uplifted from Singapore Changi Airport. The purchase of 1 SAF credit would help to reduce 2.5 tonnes of carbon dioxide emissions.  <\/p>\n\n\n\n

SIA\u2019s corporate customers and freight forwarders can purchase the SAF credits directly from SIA, which would allow them to mitigate carbon emissions related to their flights. Also, freight forwarders would be able to sell their credits to their downstream clients to reduce carbon emissions from their business operations.<\/p>\n\n\n\n

The SAF credits will be registered within the Roundtable on Sustainable Biomaterials (RSB) Book & Claim System to ensure the transactions are conducted in a trusted and transparent way, with no double counting of credits.<\/p>\n\n\n\n

Read Also: <\/em><\/strong>5 Ways Companies Can Go Green (And Be Part Of The Singapore Green Plan 2030)<\/em><\/strong><\/a><\/p>\n\n\n\n

All SIA Customers Can Buy A Mix Of SAF Credits And Carbon Offsets From The Fourth Quarter Of 2022<\/strong><\/h3>\n\n\n\n

By the end of 2022, SIA Group will allow all of its customers to purchase a mix of SAF credits and carbon offsets as part of its Voluntary Offset Programme. It would also partner with Climate Impact X, a global exchange for quality voluntary carbon credits, to offer a bundled portfolio consisting of SAF credits and carbon credits.<\/p>\n\n\n\n

Through the platform, businesses are able to discover, compare, buy, and sell carbon credits from a list of curated projects from all around the world. While it will primarily feature nature-based projects, such opportunities are hoped to bring scale and incentive to aid in the aviation sector’s decarbonization efforts.<\/p>\n\n\n\n

Read Also: <\/em><\/strong>What Exactly Is ESG Investing And How Does Greenwashing Come Into Play<\/em><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"You can pay more for your next SIA or Scoot flight to cover your carbon footprint \n","protected":false},"author":30,"featured_media":9187,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[364],"tags":[1344,1447,1423,1446],"yoast_head":"\nWhat Is The Sustainable Aviation Fuel (SAF) Credits And How Singapore Businesses Can Play Their Part In Supporting The Environment | DollarsAndSense Business<\/title>\n<meta name=\"description\" content=\"From July 2022 businesses can purchase sustainable aviation fuel (SAF) credits to reduce their carbon footprint when flying with SIA or Scoot\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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