The European Union’s ReFuelEU Aviation Regulation (EU 2023/2405) marks a turning point in how airlines source and use fuel. By mandating the gradual integration of Sustainable Aviation Fuels (SAFs) from 2025 onwards, the regulation aims to put aviation on a firm path toward climate neutrality by 2050.
For airlines, the regulation introduces both obligations and opportunities: compliance requirements, reporting duties, and the chance to benefit from new SAF markets and incentives. This article explains the essentials every airline must understand about ReFuelEU and its direct link to SAFs.
What Are Sustainable Aviation Fuels (SAFs)?
Under ReFuelEU, SAFs are defined as drop-in fuels compatible with existing aircraft engines and infrastructure. They include:
- Aviation biofuels made from waste and residues (excluding food and feed crops).
- Synthetic aviation fuels (also called e-fuels) produced from renewable electricity and captured carbon, capable of delivering near-100% lifecycle emissions savings.
- Recycled carbon aviation fuels derived from industrial waste gases.
Only SAFs meeting strict sustainability and lifecycle emissions criteria under the Renewable Energy Directive (RED II/III) are eligible under ReFuelEU.
SAF Mandates: What Airlines Should Expect
Starting in January 2025, SAF uptake becomes mandatory at EU airports, with targets that rise over time:
- 2% SAF by 2025
- 6% by 2030 (including at least 1.2% synthetic fuels)
- 20% by 2035 (including at least 5% synthetic fuels)
- 70% by 2050, with more than one-third synthetic fuels
For airlines, this means ensuring supply contracts align with these obligations and preparing for cost differentials between SAF and fossil jet fuel.
Compliance and Reporting
Airlines must comply with several obligations:
- Refuelling obligation: At least 90% of yearly aviation fuel must be uplifted at each Union airport to prevent fuel tankering.
- Annual reporting: By 31 March each year (starting 2025), airlines must report fuel uplift, SAF usage, and justifications for exemptions. These reports must be independently verified under the EU ETS framework.
- Penalties for non-compliance: Fines can be significant, often double the avoided cost of non-compliance, with revenues directed to SAF development.
Why SAFs Are Central to ReFuelEU
SAFs are not a stopgap; they are the EU’s main short- to medium-term solution for reducing aviation emissions while hydrogen and electric aircraft mature. Their role is critical because:
- SAFs are immediately deployable within current fleets and infrastructure.
- Synthetic fuels align with net-zero ambitions, offering the deepest decarbonisation potential.
- Widespread adoption creates market certainty, driving down costs over time through economies of scale.
Strategic Actions for Airlines
To prepare effectively, airlines should:
- Secure certified SAF supply through long-term contracts.
- Integrate SAF tracking into IT systems for compliance and reporting.
- Collaborate with airports and fuel suppliers on infrastructure and blending readiness.
- Leverage EU funding opportunities (Innovation Fund, Horizon Europe, CEF Transport) to offset SAF cost premiums.
VURDHAAN’s Expertise in SAF and ReFuelEU
At VURDHAAN, we bring clarity and strategy to the challenges airlines face under ReFuelEU. Our support includes:
- Regulatory expertise to interpret SAF mandates and reporting obligations.
- Supply chain guidance for securing sustainable and cost-effective SAF contracts.
- Infrastructure planning support in partnership with airports and suppliers.
- Policy and market intelligence to help airlines anticipate regulatory updates and identify EU funding streams.
By turning regulatory requirements into practical strategies, VURDHAAN ensures airlines are not just compliant but also positioned as leaders in sustainable aviation.