The production and supply of sustainable aviation fuel (SAF) are at the heart of Europe’s aviation decarbonization strategy. As the European Union pursues ambitious climate targets, SAF stands out as a key enabler of cleaner air transport. However, achieving large-scale adoption requires a well-structured market that supports both producers and consumers.
The Urgency of Scaling SAF Production
SAF has the potential to significantly reduce aviation emissions, but its availability remains limited. Current production levels cannot meet the growing demand, and investment in new SAF facilities is often hindered by regulatory uncertainties. Without intervention, the European aviation sector risks lagging behind other regions in the transition to sustainable fuels.
Market Distortions and Their Impact on Aviation
A fragmented SAF market could drive up costs and create disparities among aviation operators. Airlines with limited access to SAF may face competitive disadvantages, while fuel suppliers struggle with inefficiencies in distribution. A unified market approach is needed to ensure fair pricing, prevent monopolistic control, and encourage widespread adoption.
The Role of Policy and Regulation
The ReFuelEU Aviation Regulation sets a phased obligation for fuel suppliers to integrate SAF into their supply chains. While this is a step in the right direction, industry stakeholders argue that additional flexibility is necessary. A book and claim system, for instance, would allow SAF purchases to be decoupled from physical supply, enabling more efficient transactions and broader investment in production facilities.
Addressing Feedstock Challenges
The availability of SAF depends largely on feedstocks, yet narrow definitions in EU regulations could restrict supply. Expanding the range of eligible feedstocks—while maintaining sustainability criteria—could accelerate production. Clarity on long-term policy direction will also encourage private investments in SAF technologies.
Enhancing Competitiveness Through Flexibility
A more flexible SAF framework would not only lower costs but also stimulate greater innovation. Allowing for traceability of SAF certificates, similar to existing carbon credit systems, would help distribute fuel more efficiently across European airports. This would ensure that operators can meet sustainability targets without being constrained by geographical limitations.
Industry-Wide Support for SAF Expansion
Stakeholders across the aviation ecosystem—including aircraft manufacturers, airlines, airports, and fuel producers—are calling for decisive EU action. The recently published Draghi Report underscores the need for strategic energy autonomy, reinforcing the importance of SAF in Europe’s climate and economic policies.
A Path Forward for Sustainable Aviation
The transition to SAF is not just about meeting regulatory requirements; it is an opportunity to position Europe as a leader in sustainable aviation. With targeted policy enhancements and market incentives, the EU can create a thriving SAF industry that balances environmental goals with economic competitiveness.
VURDHAAN actively supports the aviation sector in navigating the complexities of SAF adoption, from compliance strategies to carbon reduction planning. By leveraging expertise in regulatory frameworks like ReFuelEU and CORSIA, we help businesses align with sustainability targets while maintaining operational efficiency.
Conclusion
The call for a well-functioning SAF market is clear. As Europe moves forward with its climate commitments, fostering a stable and scalable SAF ecosystem will be critical. Policy reforms, investment incentives, and a robust book and claim mechanism can accelerate SAF deployment, ensuring that aviation remains both sustainable and competitive.
Download Document Here: Joint Industry Letter on SAF and Book and Claim