Aerospace, Security and Defence Industries Association of Europe (ASD)’s Post

Europe’s aviation industry – including airlines, airports, and manufacturers – has outlined seven critical measures to boost Sustainable Aviation Fuel (SAF) production and tackle the challenges facing the European SAF sector. The recommendations, detailed in a new report by global advisory firm ICF, call for a dedicated EU SAF industrial strategy. The European Commission’s Clean Industrial Deal and Sustainable Transport Investment Plan (STIP) present ideal opportunities to implement these measures. Currently, Europe’s SAF production projections fall short of ambitions, exacerbated by industrial strategies like the US Inflation Reduction Act (IRA) and Chinese investments, creating an uneven global market. Without action, Europe risks relying on SAF imports, undermining energy independence, increasing consumer costs, and losing competitiveness as jobs shift abroad. However, the report emphasises that a strong policy push can reverse this trend. Key recommendations include: ➡️Introducing risk-sharing mechanisms, such as Contracts for Difference, to unlock private investments and reduce consumer costs. ➡️Enhancing financial support for advanced SAF facilities, including capital grants and loan guarantees. ➡️Prioritising access to feedstocks and renewable electricity to ensure sustainable and competitive production. ➡️Refining existing mechanisms, such as adding increased flexibilities to the ReFuelEU Aviation mandate and ETS allowances, to improve market efficiency and reduce volatility. Read the Report: https://lnkd.in/erpdGBfq ACI EUROPE Airport Regions Council European Regions Airline Association General Aviation Manufacturers Association Airlines for Europe (A4E)