The EU included SAF as a ‘strategic net-zero technology’ under the EU NZIA, emphasizing the need for additional policy incentives to scale up SAF production and uptake, positioning Europe as a leader in the global competition for SAF.
The five leading European aviation associations, representing airlines, airports, civil aeronautics industry, and air navigation service providers, are calling on European Union policymakers to take further steps in developing a world-leading Sustainable Aviation Fuel (SAF) industry.
The EU recently included SAF as a ‘strategic net-zero technology’ under the EU Net-Zero Industry Act (NZIA), a move supported by the aviation sector. However, the associations emphasize the need for additional policy incentives to scale up SAF production and uptake, positioning Europe as a leader in the global competition for SAF.
The associations emphasize that SAFs are a crucial component for the aviation sector to achieve its decarbonization goals, aligning with the EU’s ambitious climate agenda. The inclusion of SAF in the NZIA is seen as timely, especially in light of the European Commission’s recent communication recommending updated climate targets for 2040. The aviation sector aims to lead the way in reducing CO2 emissions by 2030 and achieving net-zero emissions from all flights departing the EU, UK, and EFTA by 2050.
Key recommendations from the aviation associations include:
- Extension of SAF Flexibility Mechanism: Advocating for an extension of the SAF flexibility mechanism beyond 2034 to provide long-term support for the development and use of SAF.
- Extension of SAF Allowances Mechanism: Proposing an extension of the current 20 million allowances threshold and the 2030 time-limit under the SAF allowances mechanisms to maintain the necessary policy support.
- Increased Financial Support: Calling for increased financial support for the development of SAF, including leveraging the Innovation Fund to encourage innovation in SAF production.
- Simplifying Administrative Procedures: Recommending simplified administrative procedures for accessing funds to streamline the process for SAF development.
The EU’s recognition of the need to address barriers to SAF deployment and provide incentives to bridge the price gap between SAF and conventional kerosene is considered a positive step. However, the associations stress the importance of additional measures to ensure the growth of the SAF industry in Europe.
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The race to become a global leader in SAF production has begun, and European aviation stakeholders are urging policymakers to implement policies that support the expansion of the SAF industry. The recommended measures aim to create an environment conducive to increased production, uptake, and innovation in sustainable aviation fuels, contributing to the aviation sector’s overall sustainability goals.
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