E-SAF presents a strategic opportunity for the EU to enhance energy resilience, strengthen its industry, create high-value jobs, and lead in cleantech innovation while contributing to aviation’s climate targets - but policy support is required to unlock its potential.
E-SAF (sustainable aviation fuel produced from clean electricity) could reinforce Europe’s energy security, strengthen its industrial base, and create ~20,000 jobs by 2050. With the potential to unlock a €350+ billion global market and reduce global aviation emissions by 400 million tonnes annually, e-SAF is key to achieving the EU’s climate and industrial goals.
Despite ~30 announced projects, no facility has reached Final Investment Decision (FID), highlighting the need for urgent policy action to scale production and secure the EU’s leadership in this first-of-a-kind innovation. To overcome investment barriers and accelerate progress, industry leaders propose five urgent policy interventions:
- Make e-SAF a strategic priority in the Clean Industrial Deal and Sustainable Transport Investment Plan.
- Recycle ETS revenues to capitalise a market intermediary that provides revenue certainty for producers and mitigates price risk for offtakers.
- Establish a bridging mechanism in 2025 to support early adopters before the market intermediary is operational.
- Provide long-term regulatory certainty on mandates, production criteria, and penalties to de-risk investment.
- Mitigate project-on-project risk with a government-backed backstop mechanism. By implementing these measures, the EU can catalyse investment, scale e-SAF production, and ensure the success of ReFuelEU Aviation.
The European e-SAF ecosystem stands ready to act—now is the time to seize this opportunity.