The EU's Sustainable Transport Investment Plan is an opportunity to unlock the full potential of e-SAF - the greenest and most scalable sustainable aviation fuel. In doing so, it could also boost the EU’s industrial competitiveness, energy independence, and jobs.
Sustainable aviation fuels (SAFs) play a crucial role in decarbonising aviation. But not all SAFs are created equal. With a potential to slash aviation’s CO₂ emissions by more than 90%, e-kerosene (also known as e-SAF) is the only scalable and sustainable option in the long term.
Despite a strong regulatory framework under the Fit for 55 package and ReFuelEU Aviation, e-SAF projects in the EU have yet to reach Final Investment Decision (FID). This is due to high capital and operational costs, a lack of long-term offtake agreements, and insufficient revenue certainty — a market failure that existing EU mechanisms have not been able to resolve.
The Sustainable Transport Investment Plan (STIP) presents a unique and timely opportunity to correct this imbalance. By focusing its support on the most strategic SAF pathway – e-SAF – the STIP can catalyse the deployment of clean aviation fuels while boosting the EU’s industrial competitiveness, energy independence, and jobs.
To do so, the STIP should embed a comprehensive mechanism, such as a European Hydrogen Clearing House (EHCH). The EHCH would operate through double-sided auctions, matching fuel producers and buyers (e.g. airlines), while ensuring price stability and demand aggregation. This would de-risk production through long-term contracts and contract for differences for e-SAF, enabling scale-up while ensuring alignment with the EU’s competitiveness goals.
Prioritising e-SAF through the STIP is not only a climate imperative – it is a strategic investment in Europe’s position as a global leader in sustainable aviation fuels and clean energy.
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