EcoCeres calls for open EU SAF market to support climate goals, fair competition, supply security

Hong Kong-based sustainable aviation fuel (SAF) producer EcoCeres Inc. urged European policymakers and aviation stakeholders in late February to keep the EU SAF market open and competitive, cautioning that potential trade-defense measures on imported SAF could undermine EU climate objectives, weaken fair competition and tighten already constrained supply.

With SAF recognized as a central pillar of aviation’s decarbonization under the EU’s ReFuelEU aviation regulation, EcoCeres stressed that the policy and trade framework must strengthen—not constrain—the conditions needed for steady supply growth, free trade and technological innovation.

At a time when SAF supply remains tight and prices are higher than conventional jet fuel, any trade-defense measures that restrict international SAF supply or raise its cost through tariffs would risk slowing SAF uptake despite the existence of binding mandates, the company stated.

“If we are serious about meeting climate targets, we cannot afford to close the door on competitive SAF supply,” said Matti Lievonen, CEO of EcoCeres. “Trade-defense measures that make SAF even more expensive or harder to access would run directly against the spirit of ReFuelEU—they would discourage airlines from switching away from fossil jet fuel, reinforce market concentration that primarily benefit a small number of EU-based producers and ultimately delay progress towards the EU’s short- and long-term climate goals.”

Recent industry analysis indicates that total SAF production volume still represents well below 1 percent of global jet-fuel consumption.

EcoCeres cautioned that imposing antidumping or countervailing duties on imported SAF would further widen this cost gap, deepen market concentration for a small group of EU‑based producers and increase the risk of bottlenecks and supply disruptions for airlines and passengers.

Higher fuel costs ultimately flow through to the wider economy, including individual travelers and small businesses that rely on affordable air transport for parcels and packages sent overseas, raising the risk of higher fares and freight charges over time.

EcoCeres also highlighted the risk that broad trade-defense actions could stifle innovation across multiple SAF pathways, including emerging technologies such as eSAF, at a time when EU policy explicitly calls for greater technology diversification and accelerated scale‑up.

Restricting international competition would weaken both price and technological competition, making it harder for Europe to meet future SAF and eSAF submandates and to expand production based on a broader range of sustainable feedstocks.

Instead of restricting market access through trade-defense measures, EcoCeres is calling on EU institutions, national governments and aviation industry bodies to focus on four priorities:

• Keep the SAF market open to international supply: Ensure access to a diversified pool of global SAF producers to avoid shortages, prevent excessive market concentration and support long‑term affordability.

• Retain, not dilute, SAF mandates: Preserve the ReFuelEU blending mandates as a cornerstone of aviation decarbonization, providing the long‑term certainty needed to unlock new investment and capacity.

• Ensure a competitive, diversified market: Promote a free trade, competitive marketplace in which diverse SAF pathways and producers can emerge and scale, reducing feedstock risk and improving supply security for airlines.

• Prioritize incentives over barriers: Use targeted incentives, such as support linked to emissions trading, innovation funding and tax credits, to help close the price gap between SAF and fossil jet fuel instead of adding new cost layers through tariffs or duties.

“Mandates have started to unlock new SAF supply globally, including in Asia, with Europe acting as a key anchor market,” Matti added. “The priority now should be to pair clear and predictable mandates with open markets, fair competition and targeted incentives—not to weaken the signal or close the market just as investments need to accelerate.”

EcoCeres reiterated its commitment to working with airlines, industry associations and regulators to develop a SAF market that is sustainable, affordable and reliable—and to ensure that trade, competition and climate policy pull in the same direction.

In June 2025, EcoCeres published a position paper on SAF market development, calling for open markets, stronger investment signals and technology‑neutral policies.

This 2026 position paper builds on those recommendations with a specific focus on potential SAF‑targeted trade-defense measures and sets out a roadmap for strengthening affordability, fair competition and supply security while keeping Europe on track to meet its net‑zero goals.