European Aviation Industry Calls for Policy Action to Boost SAF Production

February 05, 2025

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by André Orban (Aviation24.be) Europe’s aviation sector has urged EU policymakers to adopt seven key measures to accelerate Sustainable Aviation Fuel (SAF) production and avoid reliance on imports. -- A new report by ICF, commissioned by six industry bodies(*), warns that current SAF output projections fall short, risking higher consumer costs and lost jobs to international competitors like the US and China.

Recommendations include risk-sharing mechanisms, increased financial support, and feedstock prioritisation. Industry leaders emphasise that with the right policies, Europe can lead the global transition to decarbonised aviation, enhance energy independence, and strengthen competitiveness.

(*) (Airlines for Europe (A4E), Airports Council International Europe (ACI EUROPE), Airport Regions Council (ARC), European Aerospace, Security and Defence Industries (ASD), European Regions Airline Association (ERA) and General Aviation Manufacturers Association (GAMA). READ MORE

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Excerpt from ICF: In just 100 years, the aviation industry went from the first powered flight to a global network that connects more than 1.5 billion people. Over the years, passenger numbers have continued to climb as ticket prices became more affordable. By 2019, more than 4.5 billion people boarded aircrafts to do everything from visit friends and family, explore distant countries, and conduct international business.

The second edition of ATAG’s Waypoint 2050 estimates that 330–445 million tons of sustainable aviation fuels (SAF)—in addition to technological and operational improvements—are required for the global aviation industry to achieve net-zero carbon emissions by 2050.

Download this report to learn more about the future of SAF and investigate:

A potential roadmap to deploy sufficient SAF capacity
Evaluate the feedstocks and technologies needed
Estimate the necessary investment and the cost to airlines READ MORE

Excerpt from 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.

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:

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.
Prioritising 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 decarbonising 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 decarbonised 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.

Download the ICF Report: European SAF Industrial Policy here.

About A4E

Airlines for Europe (A4E) is Europe’s largest airline association. Based in Brussels, A4E works with policymakers to ensure aviation policy continues to connect Europeans with the world in a safe, competitive and sustainable manner. With a modern fleet of over 3,600 aircraft, A4E airlines carried over 718 million passengers in 2023 and served nearly 2,100 destinations. Each year, A4E members transport more than 5 million tons of vital goods and equipment to more than 360 destinations either by freighters or passenger aircraft. A4E is #Flyingforourfuture with our commitment to Europe and our call to action for incoming European policymakers. Find out more at Flyingforourfuture.eu

About ACI EUROPE

ACI EUROPE is the European region of Airports Council International, the only worldwide professional association of airport operators. ACI EUROPE represents over 500 airports in 55 countries. Our members facilitate over 90% of commercial air traffic in Europe. Air transport supports 14 million jobs, generating €851 billion in European economic activity (5% of GDP). In response to the Climate Emergency, in June 2019 our members committed to achieving Net Zero carbon emissions for operations under their control by 2050, without offsetting. Based in Brussels, we lead and serve the European airport industry and maintain strong links with other ACI regions throughout the world.

About ARC

Airport Regions Council (ARC) is the association of regional and local authorities across Europe with an airport situated within or near their territories. ARC represents the interests of its members and brings together a wide range of expertise at the interface of airports and air transport with local and regional policies. Their common concern is to maximize the societal benefits generated by airports and to minimize their environmental impact on the surrounding communities independently of their geographic position, the type of airport they host and the different political approaches.

About ASD

ASD is the voice of the European Aerospace, Security and Defence Industries. Based in Brussels, the association’s overall representation adds up to more than 4,000 companies, accounting for 98% of industry’s total turnover and 92% of its total employment in Europe. ASD actively supports the competitive development of our industries in Europe and worldwide by advocating common positions and providing technical expertise to public institutions and member companies. For more, visit www.asd-europe.org and follow us on LinkedIn.

About ERA

Founded in 1980, European Regions Airline Association (ERA) is a non-profit trade association representing over 50 airlines plus around other 150 companies involved in European air transport and is the only association that bring together the entire spectrum of companies involved in European aviation. The association supports and defends the airline industry in providing safe, efficient and sustainable air connectivity to all regions of Europe. By lobbying European regulatory bodies on policy matters, ERA promotes and protects social responsibility, environmental sustainability and the development of regional economies and local communities.

About GAMA

The General Aviation Manufacturers Association (GAMA) represents more than 140 of the world’s leading manufacturers of Business and General Aviation aeroplanes, rotorcraft, engines, avionics, components, and related services and technologies. GAMA members are also providers of maintenance and repair services, fixed-based operations, pilot and maintenance training, and aircraft management. Additionally, GAMA represents companies in the emerging sector of new air mobility, which includes the development of vertical take-off and landing (VTOL) aircraft as well as electric, hybrid and hydrogen propulsion and autonomous systems for civil purposes. GAMA member companies have facilities in over 30 countries. READ MORE

Excerpt from GreenAir News: An updated report by European aviation and aerospace industry associations estimates decarbonising the aviation sector in line with a Net Zero by 2050 target will require total expenditures of €2.4 trillion ($2.5 trillion), an increase of €510 billion (27%) from previous estimates. This will largely be driven by higher than previously anticipated market prices for sustainable aviation fuel. Unveiling its second Destination 2050 roadmap report, four years on from the first, European industry leaders said progress towards Net Zero had been promising but urgent action was needed by policymakers to incentivise and drive investment and funding in developing new technologies and, in particular, SAF production and reducing the price premium for alternative aviation fuels. The report says SAF must make up 80% of the fuel mix by 2050, 10% higher than required under the ReFuelEU Aviation regulation.

The Destination 2050 alliance is made up of five industry associations representing airlines, airports, air navigation services and aerospace manufacturers: Airlines for Europe (A4E), European Regions Airline Association (ERA), Airports Council International (ACI) Europe, CANSO Europe and the Aerospace, Security and Defence (ASD) Industries Association of Europe. As with the first roadmap in 2021, the updated Destination 2050 roadmap report was prepared by Dutch consultants Royal Netherlands Aerospace Centre (NLR) and SEO Amsterdam Economics.

“The report tells us we have made progress and that the net zero target is still achievable, and our commitment remains firm. But it also tells us that the challenges are far higher than what we had expected at the beginning,” Armando Brunini, CEO of SEA Milan Airports and President of ACI Europe, told the media at the launch of the report in Brussels.

“It is clear we are not able to do this alone. We need policymakers to support us and this must happen now as a matter of urgency. There is a window of opportunity, which if missed, we will not make it to Net Zero.”

The 2021 roadmap forecast that an anticipated 2% compound annual growth in passenger demand over the period under a business-as-usual scenario would fall to 1.6% as decarbonisation costs would have to be passed on to passengers. With the extra €510 billion costs now estimated, that growth is forecast to fall to 1.4%.

The anticipated contribution of hydrogen aircraft to 2050 decarbonisation efforts has been reduced, with SAF by far the single biggest contributor. That the industry foresees SAF making up 80% of the total fuel mix by 2050, up from 70%, is due to optimism over the voluntary commitments from airlines in Europe to buy SAF and the industry’s actions in working to increase today’s 50% maximum SAF blends to 100%.

As there was no market in place at the time of the first report, future prices for SAF were modelled on the basis that prices would come down as uptake increased, but four years on, this is likely not to be the case.

“I can confirm on behalf of airlines that SAF prices are in no way going down,” said Ourania Georgoutsakou, Managing Director of A4E. “That’s why we need to act now in Europe and accelerate the availability of affordable SAF.

“Firstly, we need to incentivise investment and support those companies financing this investment, which also includes those airlines that are putting their money in and sharing the risk. Secondly, we need to bridge the cost gap.”

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To help address the price gap for SAF and reduce its cost for airlines, the industry is calling for a significant increase in the currently available number of free EU ETS SAF allowances and extend the scheme’s original timeline beyond 2030.

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The Destination 2050 roadmap relies on market-based, or economic, measures (MBMs) to bridge the gap until other emission reduction pillars, such as alternative fuels, have sufficient impact. MBMs, such as the EU ETS and CORSIA, will make up a 12% share of total emission reductions by 2050, or roughly 35 Mt CO2. The report says MBMs should align with net-zero goals and incorporate high-quality carbon removals. READ MORE