Hong Kong’s aviation future hinges on SAF policies, experts say

In Hong Kong, South China Morning Post reported that Hong Kong must set forth policies mandating the use of sustainable aviation fuel and incentivize supply to maintain its competitiveness as an aviation hub, according to sustainability executives. Solving the problem of low demand and low supply of SAF requires government intervention, said Mark Harper, group head of sustainability, John Swire & Sons (HK), which controls the city’s flagship carrier Cathay Pacific Airways. Some 70% of the property-to-aviation conglomerate’s greenhouse gas emissions is attributable to its stake in Cathay, of which 98% is attributed to jet fuel use, he said. “Currently, about 80% of the global supply [of SAF] is produced in North America and Europe because of tax incentives that de-risked investment in the industry,” Harper said at the Hong Kong Green Finance Association’s (HKGFA) annual forum. There is a lack of similar investment here in Hong Kong and southern China, he added. To accelerate decarbonization in aviation, policies are needed to drive demand and incentivize a ramp-up in supply, according to Tracy Wong Harris, head of sustainable finance for Asia at Standard Chartered Bank and executive vice-president of HKGFA. Standard Chartered and Cathay are among 13 stakeholders, including jet fuel suppliers and producer Ecoceres, which formed a coalition in January to call for policy support. “Government policy intervention like setting short, medium and long-term SAF adoption targets is key for driving demand,” Harris said. “Public-private collaboration is also needed to share the costs and risks, including that of refueling and blending infrastructure needed for SAF to scale.”

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