ICAO promotes sustainable aviation fuel investment platform with development banks
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The International Civil Aviation Organization (ICAO) Secretary General Juan Carlos Salazar met with senior representatives from Multilateral Development Banks and other high-level officials in Washington D.C. on 24-25 October 2024. The discussions, held alongside the World Bank Group and International Monetary Fund (IMF) Annual Meetings, centered on leveraging ICAO's FINVEST Hub to support sustainable aviation investments.
FINVEST Hub's Role:
ICAO's FINVEST Hub was spotlighted as a pivotal platform to connect decarbonization projects with public and private investors, enhancing funding opportunities for sustainable aviation initiatives, particularly in developing States.
Financing Challenges:
The meetings addressed critical challenges in sustainable aviation fuel (SAF) development, including limited current production volumes, higher costs compared to conventional jet fuel, and the absence of production and supply chains in many developing regions.
Investment Requirements:
According to ICAO's Long-Term Global Aspirational Goal (LTAG) report, approximately USD 3.2 billion is required by 2050 to scale up SAF, underscoring the importance of creating funding pathways through collaboration with development banks and other financial institutions.
Ms. Annie Petsonk, Assistant Secretary for Aviation and International Affairs at the U.S. Department of Transportation, provided a keynote address during the roundtable and reaffirmed U.S. support for the Third Conference on Aviation Alternative Fuel (CAAF/3) held in November 2023 outcomes, which established the 2030 Vision and Global Framework for cleaner aviation fuels and sustainable aviation financing.
Additionally, Secretary General Salazar, met with Ms. Nerissa Cook, Deputy Assistant Secretary of State for International Organization Affairs, to discuss ICAO's ongoing transformation efforts aimed at creating a more adaptive and collaborative organization demonstrating operational excellence.
During his visit, the Secretary General also held individual meetings with high-level representatives of the Worldbank Group, the International Monetary Fund, the European Investment Bank, the Inter-American Development Bank, as well as Airlines for America.
The Secretary General was accompanied during this mission and meetings by ICAO's Legal Affairs and External Relations Director, Mr. Michael Gill.