Over 400-million euros in EU ETS support given to airlines for using SAF in 2025

The European Commission adopted a new decision Sept. 8 allocating EU Emissions Trading System allowances to airlines for using sustainable aviation fuel (SAF) in 2025.

Under this decision, EU ETS support for SAF uptake in 2025 amounts to about 5.2 million ETS allowances, worth approximately 430-million euros (USD$493.1 million) and distributed among 130 operators.

This decision was based on calculations by member states’ authorities for commercial airlines and marks another key step in implementing the additional support mechanism under the EU ETS to promote SAF uptake.

This year’s support exceeds by more than four times last year’s support for SAF uptake in the form of 100-million euros (USD$114.7 million) in EU ETS allowances and further EU ETS allocations for European Economic Area countries.

It also comes on top of the 135-million-euro (USD$154.8 million) incentive resulting from the zero rating of the SAF consumed by airlines on routes subject to the EU ETS surrendering obligation.

The total amount of SAF claimed in 2025 was over 530 000 metric tons, consisting of biofuels and advanced biofuels, which contributed to about 1.7 million tons of CO2 abatement.

Taken together, the ETS incentive for use of SAF in 2025 amounts to around 565-million euros (USD$648 million)—430-million euros (USD$493.3 million) from ETS allowances and 135-million euros (USD$154.8 million) from ETS zero rating of sustainable fuels.

This dedicated support system was introduced by the EU ETS Directive in 2023 to accelerate the use of SAF by granting free EU ETS allowances for the uptake of these fuels.

Starting from 2024, 20 million EU ETS allowances worth around 1.5-billion euros (USD$1.72 billion) are being used for this purpose.

All airlines are treated equally under this mechanism.

The support system covers all or part of the price difference between fossil kerosene and the eligible SAF used by individual commercial-aircraft operators on their flights covered by effective carbon pricing through the EU ETS.

This support supplements the EU ETS incentive to use SAF, as operators are not required to surrender allowances when using these fuels.

In addition, the EU ETS finances its own innovation fund that supports innovative clean-tech projects, including projects to reduce aviation’s climate impact.

The EU ETS has also supported the first operational eFuel plant in Europe.

By publishing EU ETS SAF support prices, the commission said it ensures a transparent support mechanism, underlining its commitment to scaling up SAF in Europe and advancing broader EU climate objectives.

In accordance with Article 8 of Regulation (EU) 2025/723, airlines should give visibility to this support from the EU ETS.

In July, the commission proposed as part of the new EU ETS review to increase this mechanism with an additional 110 million allowances reserved from wider application to aviation emissions.

This additional ETS support is expected to amount to around 15-billion euros (USD$17.2 billion) and will also support electrification and addressing aviation’s non-CO2 climate impacts.

Click here to view a list of airlines receiving the support.