EU Commission adopts SAF allocation covering 530,000 tonnes and €565 m incentive for 2025

The European Commission adopted an allocation on 8 September that covers more than 530,000 tonnes of sustainable aviation fuel and is estimated to achieve 1.7 million tonnes of CO₂ abatement, with a total incentive for SAF use in 2025 of around €565 million.

The allocation amounts to €430 million, more than four times the €100 million provided the previous year, and since 2024 up to 20 million allowances have been reserved for this purpose, valued at roughly €1.5 billion. The Commission also proposed extending ETS support for eligible aviation fuels by adding a further maximum of 110 million allowances through 2040, which could be worth around €15 billion, and a draft report suggests at least 10 million allowances to cover the price difference between fossil kerosene and renewable fuel‑for‑non‑bio‑origin (RFNBO) fuels.