Australia’s DCCEEW issues consultation on potential SAF mandate
In Australia, White & Case said that the country’s Department of Climate Change, Energy, the Environment and Water (DCCEEW) launched a consultation on the design of a demand mechanism, aimed at accelerating uptake of low carbon liquid fuel (LCLF), including sustainable aviation fuel.
The consultation seeks views on how to balance ambition against market and technological maturity, broad-based support against targeted incentives, and the need to apply sufficient pressure to create change, without placing undue stress on transitioning industries.
Under the proposed SAF mandate, obligated entities (essentially, relevant fuel suppliers) would be obliged to meet volumetric SAF requirements for a market formation period, spanning from 2029 – 2035 (Phase 1), before transitioning into compliance with carbon-intensity (CI) targets. Under this phase (Phase 2), obligated entities would be granted greater flexibility as to how they meet their targets, with SAF options providing greater lifecycle emissions reductions being preferred, said White & Case.
The consultation considers whether, and how, this demand-side policy should be optimized and implemented. In particular, DCCEEW is seeking views on the appropriate target ranges, the level and adjustment of the buy-out price, credit-banking and credit-market features, implementation challenges and considerations when moving from volumetric to carbon-intensity targets, and certification requirements.
Category: SAF
