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European aviation and fuel sectors urge stronger policy to support sustainable aviation fuel deployment

Posted: 18 July 2025 | | No comments yet

Aviation and fuel groups call on the EU to boost SAF investment and close the cost gap with kerosene.

Credit: Airports Council International

The European aviation sector, represented by the DESTINATION 2050 partners*, along with fuel suppliers (Fuels Europe, Hydrogen Europe, Project SkyPower) and cargo and express delivery operators (European Cargo Alliance, European Express Association), have jointly issued an urgent call for stronger policy support to unlock the full decarbonisation potential of Sustainable Aviation Fuels (SAF).

Sustainable Aviation Fuel is essential to reaching net zero emissions in aviation by 2050

The coalition highlights the major challenge of affordable Sustainable Aviation Fuel deployment in Europe. Currently, the SAF market is still in its early stages. HEFA-based fuels (Hydroprocessed Esters and Fatty Acids) are the only commercially available option and remain significantly more expensive than traditional kerosene. Meanwhile, next-generation SAF pathways such as e-SAF and advanced biofuels continue to face difficulties securing investment and reaching Final Investment Decisions (FID).

To address these barriers, the industry has proposed a 10 point action plan focused on reducing early mover risks and supporting the scale-up of SAF production. The plan identifies key regulatory and financial steps needed to de-risk investment, reduce the cost gap, and promote innovation in fuel technologies vital to aviation decarbonisation.

The joint call was formally presented to Apostolos Tzitzikostas, Commissioner for Sustainable Transport and Tourism, during the Implementation Dialogue focused on scaling up renewable and low carbon transport fuels.

This initiative comes as the European Commission prepares to release its Sustainable Transport Investment Plan in Q3 2025, which is expected to provide crucial support for SAF deployment and infrastructure.

ACI EUROPE President and CEO of Fraport, Stefan Schulte, stated: “By setting Sustainable Aviation Fuel 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… It is now crucial that the Commission moves swiftly to create the supportive policy environment needed to develop Europe’s SAF market.”

 

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