EC defends SAF mandate and promises ‘carrots’ to come

The European Commission has defended its sustainable aviation fuel (SAF) mandate requiring 6% of airline fuel to be SAF by 2030 despite airline chiefs hitting out at the lack of incentives for SAF production.

Speaking at an Airlines for Europe (A4E) Summit in Brussels last week, Rachel Smit, member of transport commissioner Adina Valean’s cabinet, insisted: “This long-term target is key, more [important] than short-term incentives. Fuel manufacturers must comply or there will be penalties.”

She said: “We think the target achievable. This 6% SAF target for 2030 may seem small, but it’s a big target compared with what is produced now. We need to ensure suppliers have enough sustainable feedstocks.”

Smit added: “I know this is very much a stick, but we’ll also be putting carrots in place.”

IAG chief executive Luis Gallego said: “We’re fully committed to decarbonisation, [but] it represents a major challenge. We’re investing hundreds of millions in new aircraft. We’re buying as much SAF as possible.”

But he asked: “Is 6% SAF by 2030 doable when 90% of investment in SAF is in the US? It doesn’t make sense to have mandates in Europe and the SAF in the US. We don’t have SAF plants in construction, so I don’t see how we get there.”

Gallego insisted: “We’re trying to buy SAF – every single drop. [But] what is not in our hands is not moving.”

Jet2 chief executive Steve Heapy agreed, saying: “We’re doing what we can, moving as fast as we can. But we’re reliant on other bodies. I can’t make SAF in my kitchen. We’re reliant on others to do it.”

Asked if he is confident of hitting emissions reduction targets, Heapy said: “We can if we all do what we can. But a big part of this is down to the Commission and governments. They need to play their part. We’re ready to buy SAF – there just isn’t any. Demand for SAF far outstrips the supply.”

Lufthansa Group chief executive Carsten Spohr added: “We need global solutions, but the opposite is happening. Just 0.2% of aviation fuel is SAF at present and the current price is five times the cost of aviation fuel. The next European Commission needs to ensure SAF is there.”

Irish transport and environment minister Jack Chambers acknowledged: “There will have to be greater action on incentives. Europe is way behind the targets set on SAF.”

Ryanair chief Michael O’Leary led demands for aviation taxes and emissions trading revenue to be used to incentivise SAF production, saying: “All the investment in SAF is going to the US.

“Our airlines are paying hundreds of millions in taxes. It should be used to incentivise fuel companies to produce SAF [in Europe].”

He argued: “Why is the EU not saying to member states ‘We want this income ringfenced’?”

EasyJet chief executive Johan Lundgren agreed: “The funds are there in environmental taxes. They should be used.”