Aviation360 MEA

In an effort to jump-start a market for green fuels and start reducing the carbon footprint of the aviation industry, the European Union has agreed to a pact to set binding targets for airlines in Europe to expand their usage of sustainable aviation fuels.

The plan intends to boost both supply and demand for sustainable aviation fuels (SAF), which emit net-zero CO2 emissions or less CO2 than kerosene, a fossil fuel. These fuels are currently manufactured in very small volumes and are significantly more expensive than standard aviation fuels.

Fuel providers must make sure that 2% of the fuel made available at EU airports in 2025 is SAF, with that percentage steadily increasing to 6% in 2030, 20% in 2035, and 70% in 2050.

As of 2030, 1.2% of fuels must also be synthetic, and by 2050, 35% must be. Synthetic fuels are produced using CO2 emissions that have been caught, which its supporters claim balances out the CO2 released when the fuel is used in an engine.

Zero-emission aircraft are not anticipated for more than ten years, making aviation one of the industries with the most difficult decarbonization challenges. Sustainable fuel is viewed as a way to begin gradually lowering the carbon impact of air travel in the near future.

Some European airlines, including Air France-KLM (AIRF.PA), claimed they had already set themselves more challenging goals for SAF use than what was required by EU regulations.

Others expressed concern that the agreement may distort the market since long-haul carriers operating from hubs outside of Europe would not be subject to the SAF targets.

“The price increase for travel via Istanbul or Dubai is marginal, since no SAF costs are incurred when transferring at these hubs,” a spokesperson for Lufthansa (LHAG.DE) said.

To assist them in making the changeover to SAF, airlines will get roughly 2 billion euros ($2.2 billion) in subsidies from the EU carbon market.

If biofuels meet EU sustainability standards, they can count against the primary SAF targets. The inclusion of low-carbon hydrogen generated by nuclear power is advantageous for nations like France that rely heavily on atomic energy.

The addition of various biofuels, including animal fats, has drawn criticism from the advocacy group Transport & Environment since it could lead to shortages in other sectors, such the manufacture of pet food.

Thomas Gelin, a transport campaigner for Greenpeace EU, claimed that airlines utilized sustainable fuels “as a smokescreen to dodge the fact that the only truly sustainable aviation is less aviation”.

Before the agreement becomes law, it needs to be approved by all EU member states as well as the EU Parliament. Pre-arranged deals typically proceed through that process as a formality with no adjustments.