30 January 2025: 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 [1] 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.

ENDS

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 [2] and follow us on LinkedIn [3].

About ERA
Founded in 1980, European Regions Airline Association (ERA) is a non-profit trade association representing over 50 airlines plus around 150 other 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.

For more information, please contact Becky Warburton, Editor Corporate Communications, at becky.warburton@eraa.org [4]

*A4E, ACI EUROPE, ARC, ASD, ERA, GAMA.