The sustainable future of aviation was at the centre of discussions during ALTA Aviation Law Americas with the panel “Overcoming Environmental Challenges in Aviation.”
Experts discussed progress in the availability of sustainable aviation fuels (SAF), industry commitments on environmental matters; as well as the legal implications and the need for regulatory harmonization, which are essential to ensure an effective transition in the aviation sector.
Milena Fajardo, Director of Fuels and Sustainability at ALTA, moderated the panel and highlighted that, in order to face the environmental challenges of aviation, it is crucial to prioritize a policy to encourage SAF, rather than mandates. “Latin America and the Caribbean face specific and particular circumstances such as pollution trajectories, purchasing power and the level of passenger traffic that only represents 5.8% worldwide – which make it necessary for our countries to implement roadmaps differentiated from other developed States. Therefore, the authorities must consider all the necessary aspects so that public policies are the most in line with local realities,” Fajardo added.
The need for cooperation between industry and governments was reinforced by Oracio Marques, IATA’s Regional Director of External Affairs and Sustainability for Latin America and the Caribbean. He explained that this partnership is essential to overcome regulatory and operational challenges, promoting the use of SAF as a key piece in the environmental roadmap. “We need to reinforce the need to balance SAF export regulation in countries such as Brazil, Paraguay and Colombia, ensuring that domestic and foreign demand is adequately met.”
Carolina Betancort, Manager of New Biorenewable Businesses at BioD S.A., highlighted Latin America’s potential for SAF production, given access to raw materials. According to Betancort, a strong regulatory framework, financial incentives, and public-private partnerships are essential to make these projects viable in the region.
The relevance of the role of ESG diagnostics in the creation of regulatory frameworks adapted to the realities of each country was addressed by Eliseo Llamazares, Partner and Aviation Leader at KPMG. “Today, the need for international financing and favorable fiscal policies to make SAF projects viable in Latin America indicates that legal uncertainty is a challenge that must be overcome to attract investors.”
For Eduardo Macedo, Director of Public Affairs and Institutional Relations at LATAM Brazil, regional integration represents a competitive advantage for Latin America and the Caribbean. However, the estimated cost of SAF production remains high. “The sector is committed to reaching zero emissions by 2050 and we are participating in several initiatives to meet this challenge. Everyone recognizes that the motivations for sustainability are directly related to this process. Although significant, we must consider other measures, such as operational efficiency, air traffic optimisation, the development of new technologies and, especially, carbon offsets to achieve neutrality.”
Despite the significant challenges, the experts highlighted that Latin America has enormous potential to lead the transformation of sustainable aviation. With vast natural resources and privileged access to raw materials, the region can become one of the main global poles of SAF production. However, to realize this potential, it will be necessary to overcome regulatory and economic barriers, such as the creation of robust legal frameworks, the provision of fiscal and financial incentives.
