COMMISSION SIGNALS FLEXIBILITY ON E-SAF PENALTIES UNDER REFUELEU AVIATION
Recent discussions between the European Commission and industry representatives at the fourth general assembly of the Renewable and Low-Carbon Fuels Value Chain Industrial Alliance (RLCF) indicate a more flexible approach regarding potential penalties linked to the supply of synthetic sustainable aviation fuels (e-SAF) under the ReFuelEU Aviation Regulation.
The Commission indicated that penalties may not be applied if e-SAF supply remains insufficient when the mandate enters into force. According to the Commission, the current priority is to support the development of production capacity rather than focusing on potential sanctions linked to supply shortages. ReFuelEU Aviation Regulation foresees a progressive increase in the share of sustainable aviation fuels, reaching 6% by 2030. From that point, a specific sub-mandate will apply to synthetic fuels (e-SAF), requiring an average share of 1.2% by the end of 2031, with a minimum annual share of 0.7%. The share of synthetic fuels is expected to increase gradually to 5% by 2035 and 35% by 2050.
However, the production of e-SAF remains extremely limited and significantly more costly than conventional kerosene. As a result, concerns have been raised about the ability of fuel suppliers to meet future obligations, particularly if investment decisions on large-scale production facilities are delayed. The European Union Aviation Safety Agency (EASA) has previously warned that the timely development of e-SAF production capacity could be at risk if final investment decisions on several planned projects are not taken in the coming years.
In this context, discussions between policymakers and industry stakeholders are expected to continue on how to ensure the effective implementation of the ReFuelEU Aviation targets while supporting the scaling-up of sustainable aviation fuel production.