The global aviation industry is entering a decisive phase in its transition toward net-zero emissions. As airlines and airports face mounting pressure to decarbonize operations while accommodating growing passenger demand, sustainable aviation fuel (SAF) has emerged as the cornerstone of the sector’s energy transition. In this context, Latin America is beginning to position itself as a potential key supplier within the emerging SAF ecosystem, thanks to a combination of policy initiatives, natural resources and expanding industrial capabilities.
According to the latest Global Aviation Sustainability Outlook 2026 published by the World Economic Forum, the aviation industry remains firmly committed to achieving net-zero carbon emissions by 2050, despite the rapid growth of air transport demand. Global passenger traffic is projected to reach 10.2 billion passengers in 2026 and could climb to 18.8 billion by 2045, reinforcing the urgent need for scalable solutions to reduce aviation’s carbon footprint.
Among these solutions, SAF is widely regarded as the most immediate and scalable pathway for decarbonizing long-haul aviation. However, current production volumes remain far below the levels required to support the sector’s long-term sustainability objectives. This growing supply gap is pushing governments and industry leaders to identify new regions capable of producing sustainable fuels at scale.
Brazil positioning itself at the centre of the SAF agenda
Within Latin America, Brazil has emerged as one of the most proactive countries in developing a national SAF strategy. After adopting dedicated legislation supporting sustainable aviation fuels in 2024, the Brazilian government has sought to position the country as a major future producer of low-carbon aviation fuels.
During the COP30 climate summit, Brazil launched the “Belém 4x Pledge,” an initiative designed to quadruple the production of low-carbon fuels by 2035 compared with 2024 levels. The initiative reflects Brazil’s ambition to leverage its well-established biofuels sector to support the decarbonization of international aviation.
The pledge has already attracted broad international support. A total of 23 countries have joined the initiative, including Chile and Guatemala alongside partners from Europe, Asia and North America. This growing coalition highlights the strategic importance of international collaboration in scaling the global supply of sustainable aviation fuels.
Brazil’s bioenergy expertise—particularly in ethanol, soybean-based fuels and other agricultural feedstocks—gives the country a significant advantage in this emerging market. As aviation decarbonization accelerates, Brazil could become a central hub in the global SAF value chain.
Chile and other regional players advancing SAF strategies
Beyond Brazil, other Latin American countries are also developing their own sustainable aviation fuel strategies. Chile, for example, has been refining the regulatory and technical framework of its national SAF roadmap, introduced in 2024. The country is preparing to launch pilot production projects aimed at testing industrial pathways for sustainable aviation fuels.
Elsewhere in the region, several governments are exploring the feasibility of SAF production with support from the International Civil Aviation Organization’s capacity-building initiatives. Countries such as Argentina, Mexico, Panama and Peru are currently assessing policy frameworks, feedstock availability and industrial opportunities related to sustainable aviation fuels.
These efforts signal a broader regional shift toward integrating aviation decarbonization into national energy and transport strategies. As regulatory frameworks evolve and pilot projects move forward, Latin America could gradually establish a coordinated SAF production ecosystem capable of supplying both regional and international aviation markets.
Feedstock resources as a strategic advantage
One of Latin America’s key strengths in the emerging SAF market lies in its abundant agricultural resources. Many of the feedstocks used to produce sustainable aviation fuels—including vegetable oils, animal fats and agricultural residues—are widely available across the continent.
Global biofuel supply chains already illustrate the strategic importance of these resources. Trade flows of feedstocks such as soybean oil and animal fats are increasingly influencing the economics of SAF production. In particular, Brazil’s export capacity in agricultural commodities and bioenergy feedstocks could play a crucial role in scaling global SAF production over the coming decades.
These natural advantages position Latin America as a potential cornerstone of the future sustainable aviation fuel supply chain, especially as demand grows across Europe, North America and Asia.
A new role for airports and aviation infrastructure
The expansion of sustainable aviation fuels will also reshape the role of airport infrastructure. As SAF production and distribution networks develop, airports are expected to evolve into integrated energy hubs within the aviation ecosystem.
According to the World Economic Forum’s analysis, airports are increasingly acting as critical infrastructure nodes capable of supporting the storage, blending and distribution of sustainable fuels. This transformation requires significant investment in logistics systems, fuel infrastructure and energy networks.
For Latin American aviation hubs—including major airports in São Paulo, Mexico City, Bogotá and Panama City—the integration of SAF supply chains could become a key component of long-term infrastructure development strategies.
Latin America’s growing role in aviation decarbonization
While the global aviation industry still faces considerable challenges in scaling sustainable aviation fuels, Latin America appears increasingly well positioned to contribute to the sector’s energy transition. With its combination of agricultural resources, biofuel expertise and emerging regulatory frameworks, the region could play a pivotal role in expanding global SAF production.
As governments and industry stakeholders continue to develop policy frameworks and investment pipelines, Latin America’s participation in the sustainable aviation fuel ecosystem is likely to grow. For the aviation sector, this evolution could help unlock new supply sources and accelerate the transition toward a more sustainable global air transport system.
