The International Air Transport Association (IATA) announced that it expects Sustainable Aviation Fuel (SAF) production to reach 2 million tonnes (Mt) (2.5 billion litres) or 0.7% of airlines’ total fuel consumption in 2025. “While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7% of aviation’s total fuel needs. And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate,” said Willie Walsh, IATA’s Director General. Most SAF is now heading toward Europe, where the EU and UK mandates kicked in on 1 January 2025. The cost of SAF to airlines has now doubled in Europe because of compliance fees that SAF producers or suppliers are charging.
Aviation sustainability developments from around the world
SAF cost reduction is critical to accelerate intake - says IATA
The European Commission publishes fuel price calculation details to implement the EU ETS support system and accelerate the use of eligible aviation fuels
End of May 2025, the Commission adopted a Commission Notice laying down the details for the calculation of the price difference between kerosene and relevant eligible aviation fuels. This is a crucial step in implementing the additional support mechanism under the EU Emissions Trading System (ETS) aimed at promoting the use of sustainable aviation fuels. The EU ETS Directive introduced a new support system to speed up the use of sustainable aviation fuels by providing free EU ETS allowances for the uplift of these fuels. This support system covers all or part of the remaining price difference between fossil kerosene and the eligible aviation fuels used by individual commercial aircraft operators on their flights covered by effective carbon pricing through the EU ETS, thus encouraging these aircraft operators to transition towards cleaner fuel options.
Airbus accelerates Sustainable Aviation Fuel (SAF) adoption with book and claim
Airbus is taking a significant step toward scaling the adoption of Sustainable Aviation Fuel (SAF) by testing a new “Book and Claim” approach. The book and claim approach allows a buyer to "book" a certain amount of SAF and "claim" the corresponding emission reduction, even if the fuel is used elsewhere. Through a pilot programme running throughout 2025, Airbus will leverage this system to improve SAF accessibility for potential customers, particularly those with limited volumes and far from supply points. The first MoU was signed by SMBC Aviation Capital, followed by AerCap, Comlux, Luxaviation, Novespace, Rive Private Investment and SAF Aerogroup, who confirmed their interest in joining this collaborative initiative, reinforcing the industry-wide intention to increase SAF adoption.
Latest highlights
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EUROCONTROL and EASA reinforce environmental transparency with AVENIR Working Group Reports handover
