Press release: Investors urged to caution against risk in “sustainable aviation fuels”

London, 2 September 2025 — Investments in aviation biofuels and e-fuels may raise portfolio risk if environmental, social and just transition considerations are neglected, says NGO Climate Catalyst and aviation and shipping industry alliance the SASHA Coalition. The two organisations have today released a guide that helps investors scrutinise projects for these risks and inform decisions to invest in the most environmentally sustainable and financially stable fuel projects.

The new report, Just transition, environment & social considerations for the aviation fuel transition: An investor guide, identifies three categories of often overlooked risks in alternative aviation fuel (commonly referred to as “sustainable aviation fuels”, or ‘SAF’) production and procurement that include:

1. Environmental:
   
   Biofuel production could damage biodiversity and release emissions from indirect land use changes, potentially violating environmental regulations and incurring financial penalties.

2. Just Transition:
   
   Human rights abuses or adverse local economic impacts from inadequate reskilling programmes and community engagement may destabilise the workforce and cause reputational damage.

3. Social:
   
   Irresponsible resource use may create food, water or energy insecurity, which could harm communities and risk undermining long term investment stability.

The guide provides investors with questions to engage their portfolio companies to minimise adverse environmental, economic and social impacts, and ensure stable and reliable financial returns. These include ensuring robust lifecycle emissions accounting, transparency, and holistic risk assessment.

Madeleine Hill, Head of Business and Investor Engagement at Climate Catalyst, said:

 “Alternative fuels to decarbonise aviation are a pivotal part of the journey for the sector to reach net zero by 2050. This new market also presents an exciting opportunity for investors, minimising risks and bringing greater returns from their aviation investments. Institutional investors have the opportunity to ensure economic and social stability for the long term through engaging their portfolio companies on just transition and environmental factors as new fuel technologies emerge, and ensuring the most sustainable and scalable fuels are prioritised. This guide will help investors navigate these risks and opportunities for the fuels transition, and ensure they are aligned in their net zero transition planning.” 

Nuala Doyle, Advocacy Manager at the SASHA Coalition, said:

“Alternative fuels from truly sustainable feedstocks are critical for achieving net zero aviation, and with supply currently low, significant investment is needed to scale these solutions at the necessary pace. However, without proper precautions, misplaced investments today risk locking in economic, environmental or social harms for years to come. Investors are seeking to capture the huge opportunities the fuel transition has to offer while cutting emissions and retaining high ethical standards. This guide is to help them do exactly that.”

–ENDS–

Notes to editors:

Aviation currently accounts for 2.5% of global CO2 emissions, and its total climate impact will be much higher when accounting for non-CO2 effects that may up to twice as grave as those from CO2.

The term ‘sustainable aviation fuel’ (SAF) is widely used across private and public sectors, yet encompasses fuels with radically varying environmental credentials, and certain production pathways may even more do harm than good. For this reason, the authors choose to use the term “alternative aviation fuels” to reflect this ambiguity.

The report considers three fuels, crop-based fuels, waste-based fuels and e-fuels. The table below is adapted from the report.