EU allocates €100m-worth of ETS allowances to help airlines buy Sustainable Aviation Fuels

On 12 September 2025, the Commission adopted a Decision on the allocation of EU ETS emission allowances to airlines for the use of sustainable aviation fuels (SAF) in 2024. This follows calculations by Member States' authorities for commercial airlines, and marks a key step in implementing the additional support mechanism under the EU Emissions Trading System (ETS) to promote SAF uptake.

The latest amendment to the EU ETS Directive introduced a dedicated support system to accelerate the use of SAF by granting free EU ETS allowances for the uplift of these fuels. Starting in 2024, 20 million EU ETS allowances, worth around €1.5 billion (at an allowance price of €75), are set aside for this purpose.

For the first year of application, 2024, the support amounts to about 1.3 million allowances, worth approximately €100 million, distributed between 53 operators.

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 comes on top of the EU ETS incentive for using of sustainable aviation fuels as operators are not required to surrender allowances for the use of these fuels - an advantage worth around €25 million in 2024. Taken together, the ETS incentive for use of SAF is 2024 amounts to around €125 million (€100 million from ETS allowances and €25 million from ETS zero rating of sustainable fuels). In addition, the EU ETS finances the Innovation Fund to support innovative clean tech projects, including in the aviation sector, to further reduce its climate impact.

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

• List of operators and their ETS allowance allocations for the use of sustainable aviation fuels

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