Business Environment Council Limited (“BEC”) announced the release of its Policy Whitepaper on Sustainable Aviation Fuel (“SAF”) Strategy for Hong Kong, outlining critical recommendations on the roadmap and solutions for the transition to upscale the development of SAF in Hong Kong. The document takes in the perspectives of multi-stakeholders across the SAF value chain, including technical agencies and airport regulators, SAF producers and fuel suppliers, air transport service end-users, and non-profit organisations.
Currently, the adoption of SAF in Hong Kong is still in its early stages compared to other global aviation hubs. As the aviation sector faces increasing demands for decarbonisation, transitioning to SAF has been increasingly important. In response, BEC has formulated the Policy Whitepaper, which addresses the key challenges faced by industry players and outlines strategies to accelerate SAF uptake, drawing on best practices from various countries and regions.
In developing the paper, BEC conducted comprehensive market research to analyse the current global SAF landscape and policy developments. Several pain points for SAF adoption in Hong Kong are identified, including the lack of economic signals, high SAF prices, and significant policy gaps compared to international peers. The Government is recommended to take strategic actions in three pillars: setting up a government-led multi-stakeholder working group; providing government subsidies and implementing a levy for enhancing SAF demands; and developing local SAF blending capacity. Each pillar comes with an implementation plan with timelines categorised as prompt action, near-term action, and continuous review. The recommendations are set to align the socio-economic interests of both policymakers and the industry, thereby maintaining Hong Kong’s position as an international aviation hub amid regional competitions.
In the Chief Executive’s Policy Address 2024, there was specific policy directions on SAF which align well with the policy recommendations BEC provided to the Government earlier, including setting up SAF usage targets for flights departing from the Hong Kong International Airport, and exploring future supply and demand to formulate long-term plans for setting up the infrastructure to support SAF trading.
Mr Simon Ng, Chief Executive Officer of BEC, said, “The release of this Policy Whitepaper marks a significant step in our commitment to decarbonising the aviation industry. It underscores the potential economic advantages of SAF and articulates crucial recommendations that align BEC’s efforts with the Government’s policy objectives. With the recommendation framework outlined in the paper, BEC will continue to work with the Government and the industry in implementing the SAF strategies.”
The full Policy Whitepaper is available on BEC website: https://bec.org.hk/en/publications