European airlines are facing major obstacles in their efforts to meet sustainability targets, with the limited availability and high costs of Sustainable Aviation Fuel (SAF) emerging as the biggest challenges. Despite being early adopters of SAF, airlines across Europe are struggling to secure enough supply to align with the ambitious climate targets set by the European Union (EU).
The Gap Between SAF Production and EU Targets
The current production levels of SAF fall drastically short of what is required to meet sustainability goals. In the past year, only one million tonnes of SAF were produced, a figure that pales in comparison to the 400 million tonnes needed to reach the EU’s target of 70% SAF usage by 2050. The disparity highlights the enormous challenge of scaling up production to match future demand.
While airlines have been mandated to gradually increase their use of SAF, the lack of large-scale production facilities and supply constraints make widespread adoption difficult. If these issues are not resolved, European carriers risk missing their sustainability deadlines, forcing them to rely on alternative offsetting measures to meet emissions reduction targets.
Key Challenges Limiting SAF Production
Several critical factors are hindering SAF production, preventing the aviation sector from reaching its sustainability goals:
• Technological Limitations: Current SAF production methods remain in their early stages, with limited capacity to scale up. While ongoing research is promising, commercialisation of new technologies is progressing too slowly to meet industry demands.
• High Production Costs: SAF is significantly more expensive than conventional jet fuel. The high costs deter airlines from widespread adoption and make the fuel less commercially viable without government subsidies or industry-wide investment.
• Feedstock Availability: SAF production depends on a limited supply of sustainable feedstocks, including waste oils, agricultural by-products, and synthetic sources. Competition for these raw materials, along with regulatory restrictions on certain biofuels, further constrains production capacity.
Economic Consequences for Airlines and Passengers
The financial burden of transitioning to SAF is already affecting European airlines. The high production costs of SAF mean that airlines are being forced to make difficult financial decisions, with many warning that ticket prices could rise as a result.
Industry executives have also suggested that some airlines may be forced into further consolidation, particularly smaller carriers that lack the financial resources to meet sustainability mandates. Without sufficient policy support or investment in SAF infrastructure, the increased costs could limit competition and impact the overall affordability of air travel.
The Need for Government and Industry Support
To close the gap between SAF supply and demand, industry groups are calling for greater EU intervention and investment in production facilities. Policymakers have been urged to:
• Increase funding for research and development of SAF technologies.
• Establish incentives to encourage airlines to adopt SAF at a commercially viable scale.
• Improve regulatory frameworks to support the growth of SAF production and supply chains.
Several European countries have already introduced national policies aimed at increasing SAF adoption, but without coordinated action at the EU level, production levels will remain insufficient to meet long-term climate goals.
Looking Ahead: Can the Industry Overcome the SAF Challenge?
European airlines have demonstrated their commitment to reducing carbon emissions, but without significant advancements in SAF production, their ability to meet sustainability targets remains uncertain. While SAF is widely regarded as the most viable solution for reducing aviation’s carbon footprint, the sector faces a difficult road ahead in scaling up production to meet regulatory expectations.
With ambitious targets set for 2050, the next decade will be critical for European airlines as they push for solutions to make SAF a commercially viable and widely available alternative to traditional jet fuel. Without urgent action from governments, fuel suppliers, and the industry, the aviation sector may struggle to deliver on its sustainability promises.
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This article is based on publicly available information as of 10 February 2025. While every effort has been made to ensure accuracy, we cannot guarantee the completeness of the information provided.
