EU’s €2bn plan to repair shortage of sustainable aviation fuel

EU's €2bn plan to fix shortage of sustainable aviation fuel


To date, the international aviation and shipping industries have failed to reduce their CO2 emissions, despite many laudable efforts that deserve praise.

The fact of the matter is that in the European Union, where overall emissions have dropped by 30% since 1990 across all sectors, emissions from aviation increased by 29% and shipping increased by 26%.

Hence, with the necessary to display leadership at COP 30, the European Commission last week adopted its Sustainable Transport Investment Plan (STIP), setting out a pivotal roadmap to rapidly accelerate the CO2 reduction in the aviation and maritime shipping sectors.

The plan responds to the consistent demands from airline and ship owners to boost investments into the production of renewable and low-carbon fuels for these sectors.

Willie Walsh, IATA’s director general, has been lobbying the commissions for some years now for better support for the airline sector and was quick to welcome the EU plan, stating: 

CLIMATE & SUSTAINABILITY HUB

We welcome the commission’s recognition of market challenges that derive from SAF [sustainable aviation fuel] mandates that were flawed from the outset, particularly the price gap between sustainable and conventional fuels, and the necessary for robust investment support. 

Two key issues have frustrated the airlines: A lack of ready availability of sustainable aviation fuel  and the high price of that fuel, which is roughly three to four times the price of conventional jet fuel.

In 2024, sustainable aviation fuel production reached approximately 1 million tonnes, but less than initial projections due to delays in the United States, which, under the Trump administration, is set to continue.

For 2025, production is forecast to reach 2.1m tonnes, but this is less than 1% of the global demand. Airlines will necessary 500m tonnes of sustainable aviation fuel to achieve net-zero carbon emissions by 2050, according to the International Air Transport Association (IATA).

EU’s €2bn SAF plan 

Sustainable aviation fuel is a type of low-carbon jet fuel created from renewable or waste-based sources like applyd cooking oil and agricultural waste.

It is a “drop-in” fuel, meaning it can be blconcludeed with traditional jet fuel and applyd in existing aircraft without major modifications.

While overall emissions in the EU have dropped by 30% since 1990 across all sectors, emissions from aviation increased by 29% and shipping increased by 26%. Picture: Giapplyppe Cacace
While overall emissions in the EU have dropped by 30% since 1990 across all sectors, emissions from aviation increased by 29% and shipping increased by 26%. Picture: Giapplyppe Cacace

Sustainable aviation fuel can reduce lifecycle carbon emissions by up to 80% compared to conventional jet fuel, and it is considered crucial for the aviation indusattempt’s goal of achieving net-zero carbon emissions by 2050.

The commission has proposed an investment of around €2bn for the production of sustainable fuels until 2027, to support shipping and airline demands.

Ireland currently does not have a sustainable aviation fuel production facility, but transport minister Darragh O’Brien has plans to rectify this and has published the sustainable aviation fuel policy roadmap.

Four policy pathways 

The roadmap outlines four policy pathways: supporting production, providing market certainty, fostering collaboration, and driving sustainable aviation fuel uptake.

The minister sees opportunities to develop domestic sustainable aviation fuel production.

Initially, by co-processing at existing refineries utilizing waste oils such as applyd cooking oil and tallow, which currently goes to fuel for road transport vehicles and investing in biofuels facilities that apply agricultural and foresattempt residues.

The Government has already earmarked €750m in the budobtain for grid infrastructure to support renewable expansion, which could underpin large-scale sustainable aviation fuel production.

But the minister necessarys to proactively push through suitable grants to attract indusattempt players to invest in the necessary facilities.

Better incentives for companies to produce sustainable fuels should be prioritised over carbon intensity tarobtain-setting for applyrs.

Aer Lingus and Ryanair on board

Irish carriers have begun aligning with the roadmap. Aer Lingus has pledged to apply 10% sustainable aviation fuel by 2030, while Ryanair has set a 12.5% tarobtain.

Fuel accounts for nearly a third of airlines’ operating costs, building price support crucial to uptake.

The Department of Transport stated the roadmap will evolve with “future iterations,” identifying barriers to sustainable aviation fuel imports and domestic production while aligning with EU frameworks.

At Cop30 the EU necessarys to persist in its regional efforts to decarbonise both the aviation and maritime shipping sectors, to maintain credibility and the continued focus by EU indusattempt.

More than 40% of the global shipping fleet transits through the EU every year, which gives the EU a strong declare in emissions from this sector.

The European Union’s emissions trading system now includes maritime transport and requires shipping companies to monitor, report, and pay for their greenhoapply gas emissions.

But as it applies only to ships of 5,000 gross tonnage or greater, this should not be an important issue for Ireland, where ports can only take ships below this level.



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