A new study finds sustainable aviation fuel production could generate billions for Canada’s economy while strengthening energy security and reducing aviation emissions.
A new study by Airbus and consultancy ICF has found that developing a domestic sustainable aviation fuel (SAF) industry could become a major driver of economic growth in Canada while supporting the aviation sector’s long-term decarbonisation ambitions.
Presented during the Farnborough International Airshow, the report examines the investment and policy support required for SAF to meet 40% of Canada’s aviation fuel demand by 2040. It concludes that expanding domestic production would strengthen energy security, reduce dependence on imported fuels and create significant economic opportunities.
According to the study, a Canadian SAF value chain could contribute an estimated C$32 billion to the country’s gross domestic product between 2026 and 2040.
Domestic SAF production could strengthen aviation resilience
The report estimates that developing the sector could create around 140,000 jobs across the SAF value chain during the same period. It also projects that the industry would generate almost C$890 million in annual net disposable household income, with benefits extending across agricultural regions, forestry communities and major urban centres.
In addition to economic growth, the study highlights the environmental value of greater SAF adoption. Based on the Canadian Government’s Social Cost of Carbon methodology, lifecycle emissions reductions from increased SAF use could deliver an estimated C$19 billion in societal benefits through avoided carbon costs.
Airbus also argues that expanding domestic production would improve Canada’s energy resilience. Without additional production capacity, the report warns that biofuel imports could account for more than 65% of Canadian aviation fuel demand by 2030, increasing the sector’s exposure to international market volatility and geopolitical uncertainty.
The company notes that Canada already possesses many of the assets needed to develop a competitive SAF industry, including abundant natural resources, an established aerospace sector and significant industrial expertise. However, it says long-term policy certainty and targeted incentives will be essential to encourage investment and scale production.
Airbus said it will continue working with government partners and the Canadian Council for Sustainable Aviation Fuels to help accelerate the development of a viable domestic SAF market. The company believes closer collaboration between industry and policymakers will help secure renewable fuel supplies for Canada’s aerospace sector while supporting aviation’s long-term sustainability objectives and maintaining affordable air travel.
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