e-SAF has the potential to reduce greenhouse gas emissions by up to 90% over its lifecycle compared to traditional jet fuel, potentially abating 400 million tonnes of CO₂ globally by 2050. The EU currently hosts 60% of the world's announced e-SAF production capacity, positioning Europe to lead a €350 billion global market by mid-century while enhancing energy security by reducing reliance on fossil fuel imports.
Despite approximately 30 announced e-SAF projects in Europe, none have reached Final Investment Decision (FID). To overcome investment barriers and expedite progress, the coalition recommends the following policy interventions:
- Prioritise e-SAF in EU Industrial Strategies: Incorporate e-SAF as a strategic element in the Clean Industrial Deal and the Sustainable Transport Investment Plan (STIP) to drive its transition from innovation to commercialisation.
- Allocate ETS Revenues to Support e-SAF Projects: Utilise funds from the Emissions Trading System (ETS) to establish a market intermediary that offers long-term contracts to e-SAF producers and purchasers, providing financial certainty and encouraging investment.
- Implement Transitional Support Mechanisms: Establish interim support in 2025 to assist pioneering e-SAF projects in reaching FID before the market intermediary becomes fully operational.
- Ensure Regulatory Stability: Provide clear, long-term guidelines on e-SAF mandates, production standards, and associated penalties to reduce investment risks.
- Mitigate Interdependent Project Risks: Introduce government-backed guarantees to address risks associated with the concurrent development of related projects, such as clean energy facilities essential for e-SAF production.
By adopting these measures, the EU can catalyse investment, scale up e-SAF production, and secure its leadership in sustainable aviation.
