Establish measures, such as blending requirements, to ensure the uptake of low-carbon aviation and shipping fuels

Outside of road transport, governments should establish measures, such as blending requirements, to ensure the uptake of low-carbon aviation and shipping fuels. Some blending mandates for aviation fuel have already been rolled out, and more are in the pipeline. Yet new regulations tend to put a greater focus lifecycle emissions reductions instead of simply defining the type of fuel to be blended, with new reward structures to match.

Furthermore, many markets are increasingly looking to incentivize adoption of ‘drop-in’ renewable fuels. These are seen as one of few solutions available to help decarbonize hard-to-abate sectors, like aviation, trucking, and shipping, where cleaner options are currently limited or very costly. Blending mandates can be more effective when complemented with measures that reduce the burden on companies to procure clean fuels, such as financial support and incentives along the value chain.