Cathay calls on Hong Kong to map out long-term sustainable fuel plan beyond 2030

Cathay Pacific Airways has urged Hong Kong's government to create a more comprehensive long-term plan for sustainable aviation fuel (SAF) beyond 2030, emphasizing the need for mandatory targets and stable policies. This follows mainland Chinese officials' proposal for Greater Bay Area authorities to introduce more favorable policies, such as subsidies, to increase sales of sustainable fuel.

Cathay Group CEO Ronald Lam Siu-por highlighted scalability as the primary challenge, noting that SAF currently makes up "well under 1 per cent" of global jet fuel usage. He stressed the necessity for a combined approach involving supply, demand, policy, and finance.

Currently, Chief Executive John Lee Ka-chiu's city has set a target for SAF to represent 1 to 3 percent of fuel used on outgoing flights from Hong Kong by 2030, as outlined in the city's first five-year plan. Cathay Group is already contributing to the market by making direct purchases of SAF, including Chinese-manufactured SAF, and investing in future supply chains and emerging technologies.

The company is also working with corporate and cargo clients to create demand through its corporate SAF program and collaborating within the Hong Kong Sustainable Aviation Fuel Coalition and partnerships with industry, universities, and research institutions.

Next steps for Cathay Pacific involve providing greater security for both producers and airlines. Lam emphasized the importance of producers' confidence in sustained demand, airlines' need for readily available and affordable fuel, and investors' requirement for clarity regarding policy directions. Grace Cheung, Cathay Pacific's general manager for sustainability, stressed the importance of a long-term government roadmap for the airline to plan accordingly.

She suggested that mandatory usage targets rise over time, enabling producers to lock in multi-year procurement agreements.

Cheung referenced the European Union's SAF road map to 2050 as a valuable example that could guide the industry in planning over an extended period. She also highlighted the need for consistent communication between Hong Kong and mainland authorities, addressing potential customs and tax requirements for SAF produced on the mainland.

As of 2025, Cathay Pacific's SAF usage stands at approximately 0.7 percent, a relatively high proportion compared to the global average remaining below 1 percent. However, Cheung acknowledged that further expansion would depend on evolving market and policy developments.