COM PROPOSES METHODOLOGY FOR CALCULATING SAF-KEROSENE PRICE GAP
On 9 December, the European Commission unveiled its proposed methodology for calculating the price difference between sustainable aviation fuel (SAF) and traditional kerosene. This initiative, mandated under the EU Emissions Trading System (ETS), aims to address the cost disparity and partially compensate airlines for the higher costs of SAF.
Between 2024 and 2030, 20 million carbon allowances will be reserved and distributed to airlines using SAF. The methodology sets out detailed rules for calculating the annual price gap between eligible fuels and fossil kerosene, which will guide the allocation of allowances.
Stakeholders are invited to provide feedback on the draft delegated regulation detailing the allocation process through a public consultation open until 6 January 2025. Under the proposed rules, compensation for the price difference will be allocated as follows:
- 95% for renewable synthetic fuels (RFNBO).
- 70% for advanced biofuels and renewable hydrogen.
- 50% for other biofuels under the ReFuelEU Aviation Regulation, low-carbon synthetic fuels, and hydrogen-based fuels.