Reuters
Kate Abnett
12 June 2025
The European Union has offered to subsidise airline purchases of more than 200 million litres of sustainable aviation fuels to encourage carriers to swap kerosene for cleaner alternatives, Reuters calculations show.
The calculations, based on European Commission data, suggest that the subsidies could trigger a significant boost to airline demand for sustainable aviation fuels (SAF), given the volume equates to about 15% of global SAF production.
Global SAF output last year totalled 1.3 billion litres, according to airline industry association IATA.
The EU has earmarked revenue from the sale of 20 million carbon emissions permits to help airlines to cover the price gap between conventional kerosene and more expensive SAF on flights within Europe.
Read on: EU to subsidise high volume of greener aviation fuel to boost airline demand | Reuters
