The European Union has offered to subsidise airline purchases of more than 200 million litres of sustainable aviation fuels to encourage carriers to swap kerosene for cleaner alternatives, Reuters calculations show. The calculations, based on European Commission data, suggest that the subsidies could trigger a significant boost to airline demand for sustainable aviation fuels (SAF), given the volume equates to about 15% of global SAF production.
Aviation is among the hardest sectors to decarbonise, with zero-emission aircraft not expected this decade. Sustainable fuels, which have net-zero emissions or lower emissions than fossil fuel kerosene, can help to reduce air travel’s carbon footprint in the near term. However, SAF costs three to five times more than traditional jet fuel and makes up only 0.3% of global jet fuel supply.
Airlines have warned that EU targets to use more SAF are therefore impossible to meet, though a Boston Consulting Group report this year found that the sector is investing only 1%-3% of revenue or budget allocation in SAF. The EU requires 2% of fuel made available at EU airports to be SAF in 2025, rising to 6% in 2030.
Airlines must buy permits from the EU carbon market to cover their emissions from European flights. Until last year, the EU gave airlines most permits free of charge, but it is now phasing out free permits to drive faster emissions reductions.
Source: Reuters