The lack of adequate returns is one of the biggest barriers discouraging investment in Sustainable Aviation Fuel (SAF) production globally.SAF is currently much more expensive to produce than conventional jet fuel, often 2–5 times higher depending on the feedstock and technology.Without subsidies, price support, or guaranteed demand, investors face low or negative margins, according to industry analysts.IATA’s SVP of Sustainability and Chief Economist Marie Owens Thomsen noted investment is needed to fund new SAF production facilities and other sustainability initiatives."Certainly, money is available if investors think the returns will be there. The amount of finance available to artificial intelligence development speaks to the deep pockets that investors have if they believe in a project."But the truth is that oil is bringing in about a 20% return while renewable energy is lagging at 5%. Bridging that gap requires the right policies and incentives from regulators.”Thomsen said: "The good news is that solar and wind power have already shown the way forward. SAF needs a similar level of investment to these now-established energy markets so regulators should be aware of the constituents of a good policy."The blueprint for success is there,” says Thomsen. "And it all fits together because this leads back to the idea of radical collaboration. This is not about giving money to aviation, it is about investing in the energy transition. SAF is just one part of the biofuel complex that will drive advances in renewable power.”IATA says the Asia-Pacific region is aviation’s fastest-growing market and notable for its SAF production opportunities. India, Malaysia, and Vietnam are just a selection of countries in the region that could play crucial roles in SAF production.China, meanwhile, has a strong record in strategic planning and is invariably successful in implementing those plans, often before deadline. The country aims to be carbon neutral by 2060 with peak emissions occurring before 2030.A SAF pilot project in China has been extended. The Civil Aviation Administration of China (CAAC)'s 14th Five-Year Plan calls for over 20,000 tons of SAF consumption in 2025 and a Sustainable Aviation Fuel Research Centre to develop standards and a certification system has been established.It is reported that more than 3mn tonnes of SAF production is either planned or in construction.China’s ability to be a trend-setter in SAF is important as SAF will do the heavy lifting if aviation is to reach net-zero by 2050. But Thomsen emphasises that decarbonisation is not just an industry issue.Thomsen suggests that if individual industries try to find their own solution each one will fail. "But together it is possible to succeed,” she adds."Aside from the economic implications, countries that are forward-looking in this area can achieve greater energy independence. Refineries produce a slew of products so when we talk about SAF production, it is important to remember this is a small share of refined output."The majority of renewable refined products will benefit other industries. This means that helping airlines obtain sustainable aviation fuel will give most other industries greater access to renewable fuels.”While airlines and regulators are pushing for SAF adoption, the fact remains that the demand is still relatively small and fragmented. Investors worry that commitments may not translate into long-term offtake agreements at profitable prices.Building SAF plants requires billions in upfront investment, with long payback periods. If policy frameworks or incentives such as tax credits, blending mandates, or carbon pricing are unclear, investors may find the risk-return profile unattractive.Many SAF feedstocks (including waste oils, crops and biomass) have alternative uses — like renewable diesel, bio-based chemicals, or even food. These alternatives can offer better returns, drawing investment away from SAF, experts say.Clearly, inadequate returns discourage SAF investment, which is why many experts emphasise the need for a combination of policy incentives, carbon pricing, and long-term purchase commitments from airlines to make SAF commercially viable.