Europe Handed Out €430 Million in SAF Permits Last Year — See Which Airlines Got the Most
Key Points
- EU SAF support quadrupled to €430 million in 2024 across 130 airlines, claiming 530,000+ tonnes of SAF and cutting ~1.7 million tons of CO2, plus €135 million in additional airline savings.
- The scheme underpins the ReFuelEU mandate rising from 2% SAF in 2025 (already at 2.8%) to 70% by 2050, but critics say current funding is small versus the scale of future fuel demand.
- The ‘first-come, first-served’ design risks directing most allowances to cheaper, less scalable biofuels; campaigners urge earmarking funds for e-kerosene and zero-emission aircraft. Air France-KLM, IAG, Ryanair and Lufthansa were the top allowance recipients.
Summary
European Commission support to airlines for sustainable aviation fuel (SAF) adoption surged to €430 million ($494 million) in 2024 — quadruple the roughly €100 million awarded the year prior — via free EU Emissions Trading Scheme (ETS) allowances granted to 130 airlines. The scheme, part of a €1.5 billion pot the Commission proposes to expand, helped airlines claim over 530,000 tonnes of SAF and cut around 1.7 million tons of CO2, while also saving them an additional €135 million by treating SAF as zero-emissions. Because SAF costs three-to-ten times more than fossil kerosene, the incentive is designed to close the price gap as the EU’s ReFuelEU mandate ramps from a 2% blending target in 2025 (already exceeded at 2.8%) toward 70% by 2050. However, industry observers warn the funding is small against future demand, and campaigners caution that the ‘first-come, first-served’ design channels most support toward cheaper biofuels with limited scalability and environmental risks, urging that funds be earmarked for e-kerosene and zero-emission aircraft. Air France-KLM, IAG, Ryanair, and Lufthansa received the largest allowance allocations among European carriers.
