Source: European Parliament
As highlighted in the recently published report of the Commission on the ReFuelEU Aviation SAF flexibility mechanism[1], the regulatory certainty provided by Regulation (EU) 2023/2405[2] (ReFuelEU Aviation) coupled with the incentives and financial support provided under Directive 2003/87/EC[3] (EU Emissions Trading System) have led the aviation fuel industry to ramp-up the production capacity of sustainable aviation fuels (SAF) in the EU, at least for aviation biofuels.
The Commission is aware that aviation fuel producers have not yet launched the required investments for the upscaling of synthetic aviation fuel production plants which are crucial to achieve the decarbonisation goals of the aviation sector.
As announced under the Clean Industrial Deal[4], the Commission will come forward with a Sustainable Transport Investment Plan (STIP) later in 2025, outlining a strategic approach to scale-up and priorities investments in transport decarbonisation solutions, including SAF.
Moreover, the launch of the Hydrogen Mechanism under the European Hydrogen Bank in the second quarter of 2025 will mobilise and connect offtakers and suppliers, linking participants with financing and de-risking instruments to facilitate aggregation of offtakers’ demand for hydrogen and hydrogen-derived fuels in hard-to-decarbonise industrial sectors and transport, e.g. in the maritime and aviation sector.
In parallel, the Commission will continue to monitor developments in the sustainable aviation fuel sector and particularly the development of synthetic aviation fuels production projects across the EU.
- [1] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2025%3A59%3AFIN&qid=1740729099091
- [2] https://eur-lex.europa.eu/eli/reg/2023/2405/oj/eng
- [3] https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20240301
- [4] https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en