European Aviation Industry publishes toolkit to fast-track SAF production in Europe
SOURCE: Airports Council International
February 13, 2025
BY Airports Council International
Key players in Europe’s aviation industry, including airlines, airports and manufacturers have outlined to EU policymakers seven critical measures to stimulate sustainable aviation fuel (SAF) production in Europe and overcome the challenges facing the European SAF industry.
The measures are contained in a new report from global advisory firm ICF and should form part of a dedicated EU SAF industrial strategy. The European Commission’s planned Clean Industrial Deal and Sustainable Transport Investment Plan (STIP) are ideal opportunities to put the measures into practice.
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The report, jointly commissioned by six industry bodies, highlights how current projections for SAF production in Europe fall short of ambitions and are made worse by industrial strategies in other countries, such as the US Inflation Reduction Act (IRA) and Chinese strategic investment, which have created an unequal marketplace.
If this trend continues, increasing quantities of SAF are likely to be imported to meet the EU’s mandates, undermining its attempts to attain energy independence. On top of this, consumers will end up bearing extra costs for more expensive SAF and an increasing share of jobs will be created in other countries, further undermining Europe’s competitiveness.
The report highlights that this negative projection for Europe is not guaranteed and a concerted policy push can boost SAF production in Europe. Amongst the recommendations are:
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- Introducing risk‑sharing mechanisms, such as Contracts for Difference, to unlock private investments and reduce consumer costs.
- Enhancing financial support for advanced SAF facilities, including capital grants and loan guarantees.
- Prioritizing access to feedstocks and renewable electricity to ensure sustainable and competitive production.
- Refining existing mechanisms, such as adding increased flexibilities to the ReFuelEU Aviation mandate and ETS allowances, to improve market efficiency and reduce volatility.
“Sustainable Aviation Fuel (SAF) isn’t just the key to decarbonizing aviation in the short term, it’s an opportunity for Europe to establish itself as a global leader in a new form of energy. The competition is intense and the choice is clear. If policymakers step up and implement the measures in this report, Europe can lead the transition to decarbonized aviation, increase its energy independence and enhance its competitiveness. The Clean Industrial Deal and Sustainable Transport Investment Plan are ideal opportunities to get started,” the heads of association of A4E, ACI EUROPE, ARC, ASD, ERA and GAMA said.
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