On May 26, the European Commission issued a Commission Notice clarifying the method for calculating the price difference between fossil jet fuel and qualified sustainable aviation fuel (SAF). This initiative represents a key step in the EU Emissions Trading System (EU ETS) to support the use of SAF.
Under the previously adopted Delegated Regulation (EU) 2025/723, this support mechanism allows the EU to allocate carbon allowances free of charge to commercial airlines using SAF in their flights, to offset the additional costs of SAF compared to jet fuel, thereby encouraging airlines to switch to cleaner fuels.
The Commission will publish the average price of aviation fuel for the previous year annually and calculate the price difference between jet fuel and qualified SAF based on these data. In the 2025 notice, the Commission listed the average prices and quota prices of relevant fuels for 2024, providing a basis for member states to conduct calculations in a unified and transparent manner.
These price references are derived from the technical report mentioned in Article 13 of Regulation No. 2023/2405 issued by the European Aviation Safety Agency (EASA). EASA pre-released the reference prices for aviation fuel in 2024 in its ReFuelEU Aviation Briefing on February 25, 2024, which will be used in the first official technical report to be published in September.
Currently, the competent authorities of each member state are calculating the number of free quotas available to their national aviation operators based on these standards and will submit the results to the European Commission by August 31. The Commission will then make the final allocation decision based on the information submitted by each country.
The European Commission stated that by establishing a clear and transparent price calculation mechanism, it will further promote the application of SAF in the aviation sector and contribute to achieving the EU’s broader climate and environmental goals.
Translated with DeepL.com (free version)
