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EU Parliament approves sustainable aviation fuel mandate; up from 2% in 2025 to 70% in 2050

Analysis

On 13-Sep-2023 the European Parliament voted to increase the use of sustainable aviation fuels (SAF) at EU airports.

Under the legislation, which still needs approval by EU member states, the share of aviation fuel that must be sustainable will rise from 2% in 2025 to 70% in 2050. These percentages have increased since the EU's SAF mandate, known as ReFuelEU, was first drafted in 2021.

Airlines and fuel suppliers, both old and new, are working to increase production of SAF from its current very low levels. Government and regulators also need to implement policies to grow SAF supply.

SAF mandates are one element of this, although IATA has criticised this approach for resulting in higher prices, thereby diverting resources from other environmental investment.

Tax credits and other incentives, as introduced in the US, are another government intervention to stimulate SAF production.

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