MIL-OSI Europe: Answer to a written question – Adoption of the ReFuelEU Aviation Act and the economic impact of mandatory minimum sustainable aviation fuel quotas in the air transport sector – E-000653/2025(ASW)

1. ReFuelEU Aviation[1] was overwhelmingly supported by the European Parliament[2] and the Council[3]. The Commission carried out an Impact Assessment before adopting the proposal which shows benefits through 250.000 net job creation and a new push for innovation and research[4]. Fuel costs derived from the 2% minimum share of sustainable aviation fuels (SAF) will increase costs for airlines over the short term as SAF are currently more expensive than kerosene. However, SAF prices are expected to mean an overall cost increase for airlines of around 1% by 2029. SAF prices are expected to go down from the current levels over the medium term easing the upward pressure on costs. The EU SAF market for biofuels is growing faster and higher than the minimum legal requirements in ReFuelEU Aviation. The SAF Allowances under the EU Emissions Trading System (EU ETS), and other tools offer financial support for the production and uptake of SAF[5]. This is allowing for the price increases to remain largely subdued over the short term. The increase in scale will lead to economies of scale, production efficiencies and industrial maturity that are expected to reduce the prices of SAF and consequently the relative price of blended SAF throughout the EU market.

2. 20 million EU ETS allowances worth around EUR 1.6 billion are supporting the decarbonisation by compensating for the price differential between SAF and kerosene in flights covered by the EU ETS . Other EU financial instruments are also supporting SAF production scale up such as the Innovation Fund and InvestEU. The Commission will present later in 2025 a Sustainable Transport Investment Plan as part of the Clean Industrial Deal[6] which will outline short and medium-term measures to further support SAF.

• [1] https://transport.ec.europa.eu/transport-modes/air/environment/refueleu-aviation_en
• [2] https://www.europarl.europa.eu/news/en/press-room/20230911IPR04913/70-of-jet-fuels-at-eu-airports-will-have-to-be-green-by-2050
• [3] https://www.consilium.europa.eu/en/press/press-releases/2023/10/09/refueleu-aviation-initiative-council-adopts-new-law-to-decarbonise-the-aviation-sector/
• [4] https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12303-Sustainable-aviation-fuels-ReFuelEU-Aviation_en
• [5] https://climate.ec.europa.eu/news-your-voice/news/adoption-eu-rules-ets-support-system-accelerate-use-sustainable-aviation-fuels-2025-02-06_en
• [6] https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en