EU Handed Out €430 Million in SAF Permits Last Year to 130 Airlines

The European Commission approved free EU Emissions Trading Scheme (ETS) carbon allowances for 130 airlines to encourage sustainable aviation fuel (SAF) adoption, totaling €430 million ($494 million) last year — four times the roughly €100 million granted in 2024. Airlines claimed over 530,000 tonnes of SAF, cutting about 1.7 million tons of CO2. The support is part of a €1.5 billion pot earmarked for SAF adoption, which the Commission has proposed expanding further under its ETS reform. SAF costs three to 10 times more than traditional fossil-based kerosene.