E-Fuels-Only Bill Is a Slap in the Face for Aviation

(Aviation Initiative for Renewable Energy in Germany) It is not only in politicians’ Sunday speeches that it is repeatedly emphasized that sustainable aviation fuels (SAF) are essential for reducing the climate impact of aviation. However, sustainable aviation fuels are currently only available in limited quantities and are significantly more expensive than fossil kerosene. PtL SAFs, or in other words e-fuels for aviation, are the most promising from an environmental and scaling perspective. In order to achieve the national and European climate targets, the use of e-fuels is essential in aviation as a matter of priority due to the lack of alternative energy options, without neglecting the fact that the production of PtL SAF can also produce fractions for ground-based transport. It is and remains a mistake to assume that the production ramp-up of e-fuels would pave the way for the ramp-up of PtL SAF. A simple look at the technology routes shows: Aviation would lose out on this route.

Now the Federal Ministry of Finance has presented a draft law ‘on the tax treatment of motor vehicles that can only be fuelled with e-fuels’ (e-fuels-only bill), certainly not to the surprise of the automotive industry, but which has left many others speechless. This is intended to accelerate the market launch of climate-neutral synthetic fuels.

At this point, we are reminded once again of the coalition agreement, which states: “We will use revenues from the aviation tax to promote the production and use of CO2-neutral, electricity-based aviation fuels ….” But what is this federal government doing instead? It is introducing tax breaks for ground-based transport and once again leaving aviation out in the cold.

Siegfried Knecht, Chairman of the aireg Board, comments: “This is a slap in the face for German aviation and must lead to an outcry from all those who are committed to sustainable aviation. It is downright cynical that there are now to be massive tax concessions for vehicles powered by e-fuels when, on the other hand, the funds planned in the KTF for the PtL SAF ramp-up have been reduced to almost zero with a simultaneous increase in air traffic tax (LuVSt). This is all crazy and absurd and, to put it simply, one could say that the revenue from the aviation tax is now being used to subsidize vehicles powered by e-fuels. It is high time to convert the aviation tax into a levy and use these funds in particular for the PtL SAF ramp-up. At next week’s Aviation Evening, the Federal Minister of Transport will have the opportunity to make an announcement to this effect. That is our unequivocal expectation!“

About aireg e.V.:
aireg – the Aviation Initiative for Renewable Energy in Germany e.V. was established in 2011 as a consortium of companies and organisations from industry, research, and academia. As a charitable initiative, aireg is dedicated to promoting the availability and use of renewable energies in aviation to achieve the aviation industry’s ambitious CO₂ reduction targets. Its more than 65 members span the entire value chain of renewable energies for aviation, ranging from university and major research institution research, equipment manufacturers and operators, bio-refineries, the petroleum industry, engine and aircraft manufacturers, government organisations, non-governmental organisations, and airports to airlines. The industrial members internationally range from startups to large conglomerates. READ MORE