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Closing the SAF cost gap: Policy levers to scale sustainable aviation fuels in Europe
A large quantity of sustainable aviation fuels (SAF) will be needed to reduce carbon emissions from Europe's aviation sector. Today, the only commercially available SAF are HEFA fuels made from fats and oils, but the waste oils that can be used to comply with EU SAF targets are limited. To meet future targets, especially in 2035 and beyond, advanced pathways will be needed: synthetic e-fuels and cellulosic biofuels, such as those from agricultural residues and waste. These fuels currently cost four to ten times more than conventional jet fuel.
This webinar presents a new ICCT techno-economic analysis on how pairing available national and EU policy instruments could help close this cost gap. Using the Netherlands as a case study, ICCT experts unpack potential measures and assess their effectiveness in narrowing the SAF cost gap. These measures include capital cost support in line with the latest state aid rules, EU Hydrogen Bank subsidies, and fuel credits for SAF co-products from the Renewable Energy Directive. Although revenue certainty mechanisms referenced in the European Commission’s 2025 Sustainable Transport Investment Plan are not assessed, the results could help inform the level of revenue support that may be required.
This session provides insights for policymakers, industry stakeholders, and researchers working to decarbonize Europe’s aviation sector.
