The Australian government has unveiled its Aviation White Paper, Towards 2050, outlining a long-term strategy to support sustainable aviation and reduce carbon emissions. The plan includes measures to boost the production and use of sustainable aviation fuel (SAF) and low-carbon liquid fuels (LCLFs). Key initiatives focus on advancing research into new fuel production methods, exploring incentives for domestic feedstock and fuel manufacturing, and developing systems to verify the environmental credentials of SAF and renewable diesel. Neighbouring New Zealand is pursuing similar goals as part of its Emissions Reduction Plan and has called for input from the aviation sector. While industry groups in both countries welcomed the focus on sustainability, they urged more concrete policy actions and emphasised the need for regional cooperation, suggesting Australia’s LCLF consultation process could serve as a model.
The White Paper recognises Australia’s reliance on air transport due to its vast distances and dispersed population but underscores the importance of reducing emissions to meet national commitments under the Paris Agreement. Australia aims to cut greenhouse gas emissions by 43% below 2005 levels by 2030 and plans to submit a 2035 target next year.
SAF is highlighted as the most practical solution for reducing aviation emissions in the near term, with the government prioritizing measures to increase its supply and support the development of a domestic production industry. Discussions are underway to assess potential incentives and demand-side measures for LCLFs, but the government has excluded blending mandates for now, citing the need for further analysis of their impact on emissions, fuel demand, airfare costs, and regional operations.
By 2028, the national Guarantee of Origin Scheme will be expanded to certify the sustainability of new fuels, aligning these standards with international benchmarks. LCLF technologies using innovative feedstocks will also receive funding through the AUD1.7 billion Future Made in Australia Innovation Fund, alongside AUD30 million already allocated for SAF and renewable diesel production. Identified feedstocks include sugarcane, sorghum, and agricultural and forestry residues such as stalks, leaves, husks, and woodchips, as outlined in the CSIRO SAF Roadmap.
In addition to SAF and LCLFs, the White Paper highlights government support for research into emerging low-emission propulsion technologies, including hydrogen and electric systems. Investments will also flow through the National Reconstruction Fund Corporation to support renewable energy and low-emission technology projects, and through the expanded Regional Airports Programme to develop infrastructure for sustainable aviation.
The government has positioned the White Paper as a roadmap for a competitive and sustainable aviation sector, aiming to provide clarity and direction for the industry while ensuring Australia meets its climate goals by 2050.
