Aviation and fuel industries call for urgent EU policy action on SAF deployment

European aviation and fuel industry representatives have issued an “urgent call” for accelerated policy support for sustainable aviation fuel deployment across the EU. They say the current SAF market remains nascent, with HEFA-based fuels with a substantial price gap compared to conventional kerosene the only commercially available option today. In addition, they say, next generation SAF pathways such as e-SAF and advanced biofuels are struggling to access investment, in particular in reaching final investment decisions (FID). The industry partners, which include associations representing airlines, airports, cargo operators and fuel suppliers, have issued a 10-point action plan to address early-mover disadvantages and catalyse the scale-up of SAF production. The ‘call for action’ comes as the European Commission is planning to unveil its eagerly-awaited Sustainable Transport Investment Plan in the autumn.

The industry plan was handed to the EU Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas, during an Implementation Dialogue convened to address the ramp up of renewable and low-carbon transport fuel production.

“Accelerating the availability and affordability of SAF is essential to achieving the European Union and aviation industry goal of net zero CO2 emissions by 2050,” say the partners.

Although they agree that the ReFuelEU Aviation regulation “provides an essential and forward-looking framework for scaling up SAF production and uptake across the EU”, they say it must be complemented with mechanisms “that foster the long-term investment stability needed to develop a robust and competitive SAF value chain in Europe.”

Commented Stefan Schulte, President of airports body ACI Europe: “By setting SAF mandates, ReFuelEU Aviation provided the ‘sticks’ needed for legal certainty, but failed to provide the ‘carrots’ – namely the financial incentives and flexibility mechanisms required to ensure SAF is produced at scale and at competitive prices. The industry has come together to present a 10-point plan to address this imbalance.”

The plan lays out what the industry sees as the key regulatory and financial measures needed to de-risk investment, bridge the perceived significant cost gap and incentivise innovation in fuel technologies “critical to decarbonising air transport”. It calls on the European Commission to build upon existing instruments, establish new instruments to overcome market failures and create greater regulatory certainty.

It proposes the Commission should:

1. Extend in volume and time the mechanism for fuels eligible under the EU ETS;
2. Hold dedicated calls under the Innovation Fund, Industrial Decarbonisation Bank and European Innovation Council to increase the uptake of advanced bio-SAF and e-SAF projects, as well as charging/refuelling stations, starting from 2025;
3. Ensure the European Investment Bank Group tailors its financial products to suit the risk profile and financing needs of e-SAF and advanced bio-SAF projects;
4. Accelerate initiatives bringing new SAF projects and plants to the market;
5. Create a revenue certainty instrument to overcome the offtake mismatch between long-term production and short-term uptake;
6. Explore the potential of a system allowing obligated parties under ReFuelEU to claim SAF environmental attributes through an EU virtual ticketing mechanism;
7. Create a level playing field for the European aviation industry and explore ways to boost EU production competitiveness;
8. Propose targeted simplification (Omnibus) measures to reduce the administrative burden on early 9 movers and SMEs in SAF, while maintaining the level of ambition;
9. Take the necessary measures to increase the availability of European feedstocks for SAF production; and
10. Work together with industry to accelerate the testing and certification of e-SAF technologies like methanol-to-jet and advanced ethanol-to-jet.

“We urge policymakers at EU and national levels to take immediate action and work together with industry to ensure a timely and robust ramp-up of SAF in Europe,” say the industry partners.

“This call for action for SAF should form part of a more comprehensive and dedicated EU aviation and aeronautics strategy – including new aircraft and engine technology, ATM and carbon removals – to deliver a leading, competitive and sustainable European industry.”

Signatories to the call for action include FuelsEurope, Hydrogen Europe, Project SkyPower, European Express Association, European Cargo Alliance and Destination 2050 partners Airlines for Europe, ACI Europe (airports), ASD (aerospace manufacturing), CANSO Europe (ATM) and European Regions Airline Association.

Said Montserrat Barriga, Director General of the European Regions Airline Association: “Sustainable aviation fuels are a critical part of the aviation journey to net zero by 2050, yet they remain unevenly available across the network. Asymmetric access to SAF risks distorting public perception and reputational fairness between regions and operators.

“To build a truly competitive, inclusive and efficient SAF market, we need urgent policy action to make it available, remove cost barriers, ensure price transparency and introduce effective monitoring mechanisms. This is essential to scale up production, unlock investment and safeguard air connectivity for all parts of Europe.”

Photo: EU Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas discussed solutions to stimulate investments in renewable and low-carbon fuels with stakeholders from the aviation, maritime and fuel industries at an Implementation Dialogue

Christopher Surgenor
Editor