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Open letter: five key policy needs to unlock the scale-up of e-SAF in the EU

By  Brussels, Download as PDF

Airlines for Europe (A4E) has joined forces with over 70 industry leaders and NGOs, including the aviation industry coalition Project SkyPower and Transport & Environment (T&E), and published an open letter to urge the European Commission to implement five key policy measures to accelerate the production and adoption of e-SAFsustainable aviation fuel produced from clean energy sources.

e-SAF has the potential to reduce greenhouse gas emissions by up to 90% over its lifecycle compared to traditional jet fuel, potentially abating 400 million tonnes of CO₂ globally by 2050. The EU currently hosts 60% of the world’s announced e-SAF production capacity, positioning Europe to lead a €350 billion global market by mid-century while enhancing energy security by reducing reliance on fossil fuel imports.

Despite approximately 30 announced e-SAF projects in Europe, none have reached Final Investment Decision (FID). To overcome investment barriers and expedite progress, the coalition recommends the following policy interventions:

  1. Prioritise e-SAF in EU Industrial Strategies: Incorporate e-SAF as a strategic element in the Clean Industrial Deal and the Sustainable Transport Investment Plan (STIP) to drive its transition from innovation to commercialisation.
  2. Allocate ETS Revenues to Support e-SAF Projects: Utilise funds from the Emissions Trading System (ETS) to establish a market intermediary that offers long-term contracts to e-SAF producers and purchasers, providing financial certainty and encouraging investment.
  3. Implement Transitional Support Mechanisms: Establish interim support in 2025 to assist pioneering e-SAF projects in reaching FID before the market intermediary becomes fully operational.
  4. Ensure Regulatory Stability: Provide clear, long-term guidelines on e-SAF mandates, production standards, and associated penalties to reduce investment risks.
  5. Mitigate Interdependent Project Risks: Introduce government-backed guarantees to address risks associated with the concurrent development of related projects, such as clean energy facilities essential for e-SAF production.

By adopting these measures, the EU can catalyse investment, scale up e-SAF production, and secure its leadership in sustainable aviation.