The Government notes that the additional costs of fossil free fuel for aviation are high and that the incentives for airlines to demand biofuels are therefore low. In order for the aviation industry to contribute to the Government’s goal of a fossil free future, an increase in fossil free fuel production is crucial. This requires a functioning market.
The market for fossil free fuel could be created by the aviation industry committing itself to buying a specific volume, although this is impossible at the moment as the cost is unknown. The producers are faced with a similar challenge, not knowing if they can get a return on their investments and therefore not daring to invest.
Solving this dilemma is key. We must therefore find a model that creates a market where various parties are initially involved, sharing the risk as well as the difference in price between fossil and fossil free fuels.
These initiatives will mainly be at industrial and political levels. This means that lead times can be reasonably short and that the aviation industry can contribute considerably to a fossil free future with a relatively fast transition.
The strategic objective for 2030 is that all domestic flights are fossil free. For 2045 the strategic objective is that all flights originating from Sweden are fossil free. This is in line with the Government’s goals.