EU Handed Out €430 Million in SAF Permits Last Year to 130 Airlines
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The quadrupling of free ETS allowances in a single year shows the EU is using fiscal incentives to accelerate aviation decarbonization and may expand support through ETS reform. For airlines and travel buyers, high SAF costs and mandated blending targets are likely to feed into fares and compliance costs.
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- Skift FeedEU 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.