The International Air Transport Association (IATA) noted the European Commission’s release of the Sustainable Transport Investment Plan (STIP) as a significant step in recognising the urgent need to accelerate air transport’s decarbonisation. The plan addresses several long-standing weaknesses in the EU’s aviation decarbonisation strategy, but more action is still needed.
“We welcome the
Commission’s recognition of market challenges that derive from SAF mandates
that were flawed from the outset, particularly the price gap between
sustainable and conventional fuels, and the need for robust investment support.
Extending SAF support under the EU ETS, exploring tradable SAF and
book-and-claim mechanisms, simplifying operator reporting, improving access to
sustainability certificates via the Union Database (UDB), and advancing dual
conformance of SAF under EU RED and CORSIA to promote global harmonisation are
positive steps but we need to see how words turn into reality. Particularly, we
are concerned that the STIP falls short of critical industry expectations. We
hope this is just the start of a continued review of EU aviation sustainability
initiatives which will ultimately lead to a more efficient and successful
program of decarbonisation for aviation,” said Willie Walsh, IATA’s Director
General.
The areas of the STIP
which remain areas of concern include:
Enabling SAF Book-and-Claim in Europe
IATA notes the
Commission’s recognition of the potential of mechanisms that enable tradable
SAF certification, including book-and-claim options, to address the SAF supply
barrier across European airports. It is also worth noting that such a system
will serve as a key enabler for investments in SAF production facilities, in
addition to promoting regional cohesion and connectivity by ensuring a level
playing field for aircraft operators from different geographical regions in
Europe.
This system is
urgently required in Europe, and due to the misalignment between the
flexibility mechanism under ReFuelEU Aviation, and the rules to claim SAF under
EU ETS, necessary amendments to the EU ETS Directive should be implemented
during its upcoming review to allow for EU-wide purchase-based claiming of SAF.
It also must be noted that book-and-claim is paramount to the success of the
proposed “intermediary mechanism”. Enhancement of the UDB is also critical and
should be expedited to enable this.
Prioritising demand-side considerations is crucial
Acknowledging the role
of aircraft operators as end-users and giving their issues due consideration
should be a priority in STIP’s materialisation. Aircraft operators require a
predictable SAF market with clear price transparency to plan the integration of
SAF into their daily operations effectively.
Under the current
regulatory framework, aircraft operators are exposed to unjustifiably higher
prices for jet fuel and SAF. While it is necessary to focus on ways to increase
investment in SAF production facilities, STIP should prioritise equally the
creation of a transparent and open SAF market that encourages both more supply
and demand. A robust UDB is also critical to this effort, and hence, IATA urges
the Commission to expedite its enhancement work. IATA and its members stand
ready to contribute any necessary input to this work, to ensure the best
outcome for all parties involved.
Technology-neutral SAF support is key to ensuring diversified SAF production in Europe
While the STIP
acknowledges the role of biofuels, it continues to prioritise e-SAF, citing
feedstock constraints. IATA’s recent report on feedstock availability demonstrates
that Europe possesses significant untapped potential for sustainable
feedstocks, including advanced residues and waste streams. A technology-neutral
approach—supporting both biofuels and e-SAF—is essential to maximise the
potential of all SAFs, all of which will be necessary to reach the targeted 500
Mt in 2050. Limiting support to e-SAF alone risks undermining the scalability
and cost-effectiveness of SAF deployment across the continent, with
commensurate delays in achieving reductions in CO2 emissions.
“IATA stands ready to work constructively with the Commission to address these gaps and ensure that the STIP delivers a coherent, investment-ready framework. IATA asks for the EU Commission to clarify the timelines for materialising key flagship actions, in consideration of the reviews of the EU ETS and Refuel, to allow for timely and appropriate market actions and other interventions. The airline industry is committed to net zero carbon emissions by 2050, but this ambition can only be realised if policy frameworks are fully aligned with industry needs and the true scale of the challenge,” said Willie Walsh. -TradeArabia News Service