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The recent tariffs imposed by the Trump administration mark a significant shift in U.S. trade policy that is expected to have a wide-ranging impact across multiple sectors, including in the energy sector.

As global passenger demand surges back to pre-pandemic levels, the aviation finance sector finds itself at a pivotal crossroads. Lower interest rates are sparking renewed activity, the aircraft ABS market is rebounding, and supply chain challenges continue to reshape priorities.

The UK government is advancing efforts to accelerate the adoption of Sustainable Aviation Fuel (SAF), which currently makes up only 0.17% of global aviation fuel use, despite industry targets of 10% by 2030.

In this article, published by PFI and written in conjunction with etasca, Alan Alexander, Lauren Davies, Andrew Nealon and Louis Molloy discuss the challenges and potential solutions for scaling Power-to-X (P2X) technologies to meet global net-zero targets. P2X involves converting renewable energy into low-carbon products like hydrogen, e-methanol, and sustainable aviation fuel (SAF).

Ireland is the global hub for aircraft leasing and financing, with over 60%¹ of the world’s leased aircraft being managed from there, and Dublin being home to more than 30 aircraft leasing companies².

In a potentially significant development that may impact the economics of aviation, the California Air Resources Board (“CARB”) is proposing a policy, as we previewed in January 2024, to update the state’s Low Carbon Fuel Standard (“LCFS”) program, whereby CARB would eliminate the existing exemption for intrastate fossil jet fuel from LCFS regulations beginning in 2028.

As the aviation market moves towards a more sustainable future and fuel source, Brazil and other Latin American countries are likely to serve as key production locations for SAF due to their unique natural endowments and existing experience with bio-fuels.

As 2023 draws to a close we are taking a moment to recap on some of the headline events that have occurred in the aviation industry during the last 12 months.

Power-to-liquids technology can accelerate aviation’s decarbonization journey.