Aviation Sector Urges Greater Support for Sustainable Aviation Fuels

Key Takeaways

• New EU and UK SAF mandates started January 1, 2025, requiring 2% sustainable aviation fuel blend.
• SAF production will double in 2025 to 2 million tonnes, still only 0.7% of global aviation fuel.
• SAF costs are five times higher than regular jet fuel, raising concerns about ticket price increases.

The aviation sector is facing major changes in 2025 as new rules for sustainable aviation fuels (SAF) take effect. These changes are shaping how airlines, fuel suppliers, and even travelers experience air travel. The push for cleaner fuels is strong, but the path forward is not simple. Here’s a clear summary of what has changed, who is affected, what actions are required, and what these changes mean for anyone connected to the aviation sector.

Summary of What Changed

In 2025, the aviation sector saw a big shift with the introduction of new SAF mandates in the European Union (EU) 🇪🇺 and the United Kingdom (UK) 🇬🇧. These rules require airlines and fuel suppliers to use a certain percentage of sustainable aviation fuels in their operations. The goal is to cut down on carbon emissions from planes, which are a major source of pollution. At the same time, the United States 🇺🇸 has taken a different approach, with some federal support for SAF but also new uncertainty about future funding.

Key Changes:
– SAF production is set to double in 2025, reaching about 2 million tonnes, but this is still only 0.7% of all aviation fuel used worldwide.
– EU and UK SAF mandates started on January 1, 2025, requiring a 2% SAF blend in aviation fuel. These targets will rise over time, reaching 10% in the UK by 2030 and 70% in the EU by 2050.
– SAF costs have soared, especially in Europe, where SAF is now five times more expensive than regular jet fuel.
– Industry leaders warn that current policies may not be enough to meet climate goals and could make flying more expensive.

Who Is Affected

These changes impact a wide range of people and organizations:
– Airlines must buy and use more SAF, which increases their costs.
– Fuel suppliers have to blend SAF into their products and prove they meet the new rules.
– Travelers may see higher ticket prices as airlines pass on some of the extra costs.
– Investors and technology developers face new risks and opportunities as the market for SAF grows.
– Governments and regulators must enforce the rules and respond to industry feedback.

Effective Dates

• EU and UK mandates: Started January 1, 2025, with a 2% SAF requirement.
• Future increases: The UK will require 10% SAF by 2030 and 22% by 2040. The EU will ramp up to 70% by 2050.
• Feedstock caps: In the UK, limits on certain types of SAF (like those made from used cooking oil) begin in 2027.

Required Actions

If you are part of the aviation sector, here’s what you need to do:

For Airlines and Fuel Suppliers:
– Blend SAF into aviation fuel to meet the minimum required percentage (2% in 2025).
– Ensure SAF meets sustainability standards. In the UK, for example, SAF must cut greenhouse gas emissions by at least 40% compared to regular jet fuel.
– Document and certify the amount and type of SAF used. This involves providing proof to government agencies, such as the UK Department for Transport.
– Use or trade certificates. In the UK, suppliers receive certificates for the SAF they supply, which can be used to show compliance or traded with others.
– Prepare for stricter feedstock rules. From 2027, there will be limits on how much SAF can come from certain sources, pushing suppliers to find new ways to make SAF.

For Investors and Developers:
– Monitor policy changes closely, especially in the United States 🇺🇸, where support for SAF is less certain.
– Focus on new technologies. The heavy use of one type of SAF (HEFA, made from fats and oils) is not sustainable in the long run. There is a need to develop other methods, like alcohol-to-jet or synthetic fuels.

For Travelers:
– Expect possible ticket price increases as airlines deal with higher fuel costs.
– Look for airlines investing in SAF if you want to support greener travel.

Implications for Pending Applications

If you have a pending application related to SAF production, supply, or use—such as permits, funding requests, or compliance documents—here’s what you need to know:

• Applications must reflect new SAF mandates. Make sure your plans meet the latest blend requirements and sustainability standards.
• Be ready for stricter documentation. Authorities will likely ask for more proof that your SAF meets the rules.
• Expect longer review times. With new rules in place, government agencies may take longer to process applications as they adjust to the changes.
• Stay updated on feedstock rules. If your SAF relies on fats, oils, or other limited sources, check if new caps affect your application.

Current Policy Landscape

European Union (EU) 🇪🇺
– The ReFuelEU Aviation Regulation requires all EU countries to follow the same SAF blending rules. No extra national laws are needed.
– The rules start at 2% SAF in 2025 and rise to 70% by 2050.
– The EU limits the use of crops for SAF, focusing on waste oils and advanced methods.

United Kingdom (UK) 🇬🇧
– The Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024 started on January 1, 2025.
– SAF must make up 2% of aviation fuel now, rising to 10% by 2030 and 22% by 2040.
– Suppliers get certificates for SAF, which can be traded.
– From 2027, there are limits on SAF made from certain fats and oils, pushing for more variety in SAF sources.

United States 🇺🇸
– The Trump administration approved a $1.67 billion loan for a SAF plant using vegetable oils and greases.
– There is a pause on some federal spending for SAF, creating uncertainty.
– States like California, Oregon, and Washington support SAF through their own programs.
– The US allows SAF from crops like corn and sugarcane, unlike the EU and UK.

International (ICAO)
– The International Civil Aviation Organization (ICAO) wants to cut CO2 emissions from international flights by 5% by 2030 using SAF and other clean energy.
– Airlines can use SAF to reduce their need to buy carbon offsets if the fuel meets global standards.

Quantitative Data and Market Dynamics

• Global SAF demand in 2025 is about 2 million tonnes, with half of that used in Europe.
• SAF costs are much higher than regular jet fuel, especially in Europe, where it is five times more expensive.
• The European SAF mandate will add $4.4 billion to the global fuel bill in 2025, with $1.7 billion in compliance fees in Europe alone.
• Over 80% of SAF is made using HEFA technology, which relies on limited feedstocks.
• By 2030, global SAF demand could reach 15 million tonnes, but supply may fall short by up to 26 million tonnes by 2035 if new technologies are not developed.

Industry and Stakeholder Positions

Airlines and Industry Groups
– IATA (International Air Transport Association) urges governments to shift fossil fuel subsidies (worth about $1 trillion) to support SAF and renewable energy.
– SkyNRG calls for strong policies and support for companies making and using SAF.
– Over 60 airlines have set SAF targets for 2030, but many worry that current rules could hurt their ability to compete if costs stay high.

Policy Experts and Analysts
– Boston Consulting Group (BCG) notes that while SAF production has grown quickly, it is still a tiny part of total jet fuel use. New projects are slowing down because of high costs.
– Climate Catalyst warns that political fights in the US could hurt long-term investment in SAF.

Policy Implications and Practical Effects

• Cost burden: Airlines, especially in Europe, face much higher costs. This could lead to higher ticket prices and make it harder for them to compete.
• Supply constraints: Most SAF is made from a small number of sources, which is not enough to meet future demand. New ways to make SAF must be developed quickly.
• Market distortion: If mandates are too strict or come too soon, they can drive up costs without cutting emissions as much as hoped.
• Investment uncertainty: Changing policies, especially in the US, make it hard for companies to plan and invest in new SAF projects.

Step-by-Step: How SAF Mandates Work (EU/UK Example)

1. Mandate enforcement: Fuel suppliers must make sure at least 2% of their aviation fuel is SAF in 2025.
2. Certification: SAF must meet strict rules for cutting greenhouse gases (at least 40% less than regular jet fuel in the UK).
3. Documentation: Suppliers must prove to authorities that their SAF meets the rules.
4. Certificates: Suppliers get certificates for the amount and quality of SAF they supply.
5. Trading: Certificates can be used to meet rules or traded with others.
6. Feedstock caps: From 2027, there are limits on how much SAF can come from certain sources, encouraging new ways to make SAF.

Future Outlook and Pending Changes

• Mandate escalation: SAF blending requirements will rise sharply over the next 10–25 years, with the EU aiming for 70% by 2050 and the UK for 22% by 2040.
• Technology shift: The industry must quickly develop new ways to make SAF, such as from alcohol or synthetic methods, to avoid running out of feedstocks.
• Policy evolution: There are calls for smarter policies that mix mandates with direct financial help, research funding, and steps to keep SAF affordable and available.
• US policy uncertainty: Federal support for SAF is unclear, but state programs and leftover funding from earlier laws may still help.

Multiple Perspectives

• Airlines: Support SAF but worry about high costs and limited supply.
• Regulators: Say strong rules are needed to push the market forward, but face criticism over how fast and strict the rules are.
• Environmental groups: Want strict rules to make sure SAF is truly sustainable and not made from crops that could harm the environment.
• Technology developers: Ask for more research funding and clear policies to help bring new SAF methods to market.

Official Resources and Contacts

For more details on SAF rules and support, visit the UK Department for Transport for official guidance.

Actionable Takeaways and Next Steps

• Airlines and suppliers: Review your fuel sourcing and compliance plans to meet new SAF mandates. Invest in documentation and certification systems.
• Investors and developers: Focus on new SAF technologies and keep up with changing policies, especially in the United States 🇺🇸.
• Travelers: Stay informed about how SAF changes may affect ticket prices and airline choices.
• All stakeholders: Watch for updates on feedstock rules and future mandate increases.

As reported by VisaVerge.com, the aviation sector’s push for sustainable aviation fuels is at a turning point. The next few years will be critical in deciding whether SAF can truly help the industry cut emissions without making flying too expensive or limiting travel options. For now, staying informed and prepared is the best way to handle these changes.

Learn Today

Sustainable Aviation Fuel (SAF) → A biofuel for aircraft reducing carbon emissions compared to conventional jet fuel.
Mandate → A government requirement forcing use of specific sustainable fuel percentages in aviation operations.
HEFA → Hydroprocessed Esters and Fatty Acids, a SAF type made from fats and oils feedstock.
Certification → Official proof that SAF meets environmental and usage standards for government compliance.
Feedstock → Raw materials like oils or agricultural products used to produce sustainable aviation fuels.

This Article in a Nutshell

In 2025, aviation faces major shifts as EU and UK mandate sustainable aviation fuels to cut emissions. Production doubles but costs soar. Airlines, suppliers, and travelers must adapt to new rules and rising prices. Technology and policy evolution remain crucial for sustainable, affordable air travel in the future.
— By VisaVerge.com