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Brazil Poised to Become Global Aviation Fuel Powerhouse, IATA Says

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Brazil has the potential to become one of the world's largest producers of sustainable aviation fuel, positioning itself at the center of the airline industry's push toward net-zero emissions while creating a major new export industry, the International Air Transport Association said in a Monday note.

Speaking at IATA's 82nd Annual General Meeting in Rio de Janeiro, IATA officials said Brazil's vast biomass resources, established biofuels sector and relatively clean energy mix could enable the country to play a pivotal role in decarbonizing global air transport.

Airlines are expected to require about 500 million metric tons of sustainable aviation fuel per year to meet their commitment of reaching net-zero carbon emissions by 2050, creating a substantial market opportunity for producers worldwide.

IATA said Brazil possesses one of the largest biomass feedstock potentials globally, estimated at about 180 million metric tons by mid-century, enough to generate about 60 million metric tons of SAF.

The aviation body said sustainably sourced sugarcane ethanol, along with virgin and waste oils, could support the production of about 12 million metric tons of SAF per year by 2030, about five times the estimated global output expected in 2026.

"Brazil has all the ingredients to be a global SAF powerhouse," said Willie Walsh, director general at IATA."

He added that the city has one of the "cleanest electricity mixes" and also has ample access to feedstock. "Moreover, as the second largest producer of liquid biofuels in the world, the country benefits from deep expertise and developed infrastructure," Walsh said.

The aviation industry has identified sustainable aviation fuel as a critical tool for reducing emissions from long-haul flights, a sector where electrification remains technologically challenging.

Brazil currently has about 15 SAF projects under development, which are projected to bring about 2 million tons of annual SAF production capacity online if they proceed.

IATA said Brazil's expertise in ethanol production and existing refining infrastructure provides a strong foundation for scaling production technologies such as Hydroprocessed Esters and Fatty Acids and ethanol-to-jet fuel pathways.

However, the aviation body cautioned that substantial investment and supportive policies will be needed to unlock the sector's full potential.

IATA identified infrastructure development, financing support and regulatory incentives as key priorities.

The industry group also emphasized the importance of establishing a "book-and-claim" system for tradable SAF certificates to facilitate market growth and align Brazil's framework with international standards, including CORSIA, the aviation emissions reduction scheme.

IATA said that ensuring adequate fuel supply before imposing consumption mandates would be critical to building a competitive SAF market and maximizing Brazil's opportunity to become a leading player in the global aviation energy transition.

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