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Why Scaling SAF and Green Financing Remains So Difficult

If the first phase of aviation’s sustainability push was about setting targets, the next phase is about making them work.

At the ISTAT Sustainability Symposium in Dublin, held 28 April 2026, discussions around sustainable aviation fuel (SAF) and green financing moved quickly past broad support and into a more practical question: What will it actually take to scale?

The answer, discussed across panels, came down to structure. The technology exists, and the capital is available, but the systems connecting the two remain incomplete.

SAF Is a Market — and a Mechanism

In the session “SAF in Focus: Updates, Opportunities and What’s Needed to Succeed,” moderated by Cronan Enright, head of strategy at Aviation Capital Group, panelists Patrick Edmond, chief commercial officer at Future Energy Global; Radhika Gupta, vice president at MUFG Bank Ltd.; Simon O’Donnell, sustainability policy and partnerships lead for Northern Europe and Ireland at Boeing; and Nichola Quinn, CEO of XeleratedFifty, described a market that is evolving, but not yet operating at the scale aviation requires.

Today’s SAF producers are not only supplying fuel. They are also generating emissions reductions tied to that fuel, creating two distinct outputs that can be structured and sold in different ways.

One mechanism discussed was “book and claim,” a structure used in renewable energy markets that allows the environmental benefit of SAF to be decoupled from its physical use. This enables airlines, as well as corporate buyers, to support SAF production and account for emissions reductions without taking direct delivery of the fuel.

Panelists noted that this approach is beginning to broaden participation. Corporates Scope 3 emissions targets under the European Union’s Corporate Sustainability Directive are entering the market by purchasing SAF-related credits within their value chains, contributing to demand while supporting producers.

Even with that increased engagement, scale remains limited. Mandates are still relatively low—around 2% in Europe — and voluntary demand, while growing, is not yet sufficient to drive large-scale production.

The Bankability Question

From a financing perspective, speakers emphasized that the primary constraint is not interest, but risk.

Gupta highlighted the importance of “bankability,” noting that lenders are focused on projects with predictable revenue streams, proven technology and clearly allocated risk across the value chain. Long-term offtake agreements were identified as a key component in creating that stability.

At the same time, many SAF pathways remain in earlier stages of development. Financing these technologies is possible, but it requires different structuring approaches and a higher tolerance for uncertainty.

Quinn discussed the role of supporting early-stage innovators, particularly in helping them establish the right commercial and strategic foundations. This includes evaluating geographic considerations, such as feedstock availability and regional infrastructure, which can vary significantly across markets.

O’Donnell pointed to the role of the defense sector in supporting demand, noting that government-backed offtake agreements could provide additional stability for SAF producers. Edmond also referenced the growing involvement of corporates, including companies seeking to address emissions within their value chains.

Policy and Market Development

Policy continues to play a central role in shaping the SAF market. Panelists pointed to the U.K. and Europe as having established clearer regulatory frameworks, which have helped support financing activity and provide greater certainty for developers.

At the same time, differences across regions remain a challenge. Variations in feedstock eligibility, incentives and regulatory approaches can affect project viability and limit economies of scale.

Speakers emphasized the importance of early engagement between developers and lenders to ensure projects are structured in a way that can attract capital. They also noted that policy, financing and market demand need to develop in parallel for SAF to scale effectively.

Financing Aviation’s Transition

The discussion continued in the “Green Financing” panel, moderated by Maria McElhinney, partner in the aviation and transport finance group at A&L Goodbody, with Thomas Conlon, professor of finance at University College Dublin; Philip Greene, director at HSBC; and Carolin Horn, vice president of sustainable finance at ING Bank N.V.

Panelists examined how sustainability is being incorporated into aviation finance, noting that airlines have raised approximately $5 billion through sustainability-linked financing since 2018. While activity has increased, uptake remains lower than in other sectors.

One of the challenges discussed was credibility. Sustainability-linked loans (SLLs) depend on measurable and achievable targets, but in aviation, external factors can affect performance. Greene pointed to recent examples where aircraft groundings due to engine issues made it more difficult for airlines to meet emissions targets tied to financing structures.

Horn noted that aviation has been slower to adopt these instruments compared to industries such as real estate or infrastructure, though interest is increasing. Panelists also discussed how banks are integrating sustainability considerations more directly into risk frameworks, with some institutions embedding these factors within credit functions.

Conlon emphasized that if the industry is to move toward net-zero targets, measurable benchmarks will be required, along with mechanisms to assess how those targets are incorporated into financial structures over time.

Scaling Through Coordination

Across both sessions, speakers returned to the need for coordination across the aviation ecosystem.

Investment in SAF is increasing, and financing structures are evolving, but both depend on a combination of policy support, market demand and risk-sharing mechanisms. Panelists noted that scaling will likely involve supporting multiple technologies and approaches, allowing the market to determine which solutions are most effective over time.

They also pointed to the relatively small size of the jet fuel market within the broader energy sector as a factor influencing investment decisions, particularly when compared to other opportunities that may offer different return profiles.

As discussed throughout the sessions, the focus is now shifting toward how these efforts can be structured and scaled across the aviation value chain.

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