A new report developed by Project SkyPower explores how to reduce project delivery risk for first-of-a-kind e-SAF projects - a critical step in unlocking financing and scaling aviation decarbonisation.
To meet the 2030 ReFuelEU mandate, early e-SAF projects must reach final investment decisions in 2026. The report outlines how project delivery risk can be shared between public and private market participants, evaluating the risk bearing capability of players such as developers, sponsors, contractors, OEMs, and technology licensors as well as the role of insurance in mitigating some of the residual risk.
While technical expertise sits firmly with the private sector, access to risk-tolerant, flexible capital remains a core constraint. We highlight the key role of EU Public Financial Institutions (PFIs) - such as European Investment Bank, National Development Banks, and Export Credit Agencies - in bridging this gap
The report identifies five targeted instruments EU PFIs can deploy to complement, not replace, private sector accountability:
1. Cornerstone lender to e-SAF projects
2. Enhancement to insurance products
3. Contingent reserve facilities
4. FEED funding
5. Backstopping and enhancement of supplier guarantees
While the report focuses on e-SAF projects, these principles and financial instruments have the potential to unlock commercial capital and accelerate the adoption of other innovative climate technologies.