EU green jet fuel mandate takes off
Europe’s first region-wide mandate for greener jet fuel took effect this week, ushering in a new era for airlines, fuel suppliers, and travelers as the aviation industry confronts its climate footprint. The regulation, known as ReFuelEU Aviation, requires fuel suppliers at EU airports to blend a minimum share of sustainable aviation fuel (SAF) into kerosene: 2% in 2025, ramping to 6% by 2030 and 70% by 2050. The rules apply to flights departing from EU airports, affecting both European and foreign carriers.
SAF is produced from sources such as used cooking oil, agricultural residues, and, in emerging projects, synthetic fuels made with captured carbon and renewable electricity. When produced under strict sustainability criteria, these fuels can cut lifecycle emissions by up to 80% compared with conventional jet fuel, though outcomes vary by feedstock and technology.
Airlines broadly welcome the long-term policy certainty but warn of near-term cost pressures. SAF remains scarce and several times more expensive than fossil jet fuel, reflecting limited production capacity and a still-developing supply chain. Industry groups say the mandate will spur investment and scale, but they caution that fares could face upward pressure as blending levels rise. The regulation also includes measures intended to curb “tankering”—the practice of carrying extra fuel from airports with cheaper prices—which can increase emissions.
Fuel producers and airports, meanwhile, are racing to expand infrastructure. New blending facilities, storage upgrades, and quality-control systems are being rolled out at major hubs to handle a wider range of SAF types. Producers say the mandate provides the demand signal they need to unlock financing for advanced projects, including so-called e-fuels that rely on green hydrogen and carbon capture. Environmental groups have praised the policy as overdue, while urging robust sustainability checks to avoid unintended impacts on land use and biodiversity.
Europe’s move adds momentum to a patchwork of global policies aimed at cleaning up aviation—a hard-to-decarbonize sector with few immediate alternatives to liquid fuels on long-haul routes. The United Kingdom is pursuing its own SAF mandate, and the United States has enacted tax credits to stimulate production, underscoring a broader push to commercialize low-carbon fuels at scale.
The coming months will test how smoothly the transition begins. Analysts expect gradual increases in SAF availability as contracted deliveries materialize and new plants come online. Over the longer term, the pace of cost declines and the build-out of advanced e-fuels will be pivotal to meeting steeper blend targets and keeping air travel affordable while cutting emissions.