IATA: UK caps on HEFA SAF and e-SAF to drive up costs 'without any associated emissions reductions'

IATA Economics reported (30-Jul-2026) that without the supply of eligible fuel, the 'HEFA cap' and 'e-SAF cap' under the UK Government's sustainable aviation fuel (SAF) mandate could drive costs to approximately GBP300 million (EUR350.58 million) in 2027 and up to GBP2 billion (EUR2.34 billion) in 2030, "without any associated emissions reductions". The figures would equate to an additional GBP183 (EUR213.85) per tonne of conventional aviation fuel supplied, in addition to any other mandate compliance costs. IATA commented: "Calculated costs per tonne show that the cost impact for airlines under the mandate is much greater than that felt by other UK transport sectors". The 'HEFA cap' will take effect in 2027 and will limit certain feedstocks, such as used cooking oil. The e-SAF supply mandate will commence in 2028. UK aviation fuel suppliers will be obliged to supply increasing volumes of 'non-HEFA' SAF and e-SAF, and those that are unable to source eligible fuel will pay a buyout price of GBP5875 (EUR6865) per tonne for main obligation SAF and GBP6250 (EUR7304) per tonne for e-SAF. [more - original PR]