The European Commission has allocated about 5.2 million EU ETS allowances, worth roughly €430 million, to 130 airline operators for sustainable aviation fuel used in 2025. The support forms part of the EU’s dedicated emissions trading mechanism for SAF uptake and covers flights within the carbon pricing system, giving airlines a financial offset for using eligible lower-carbon fuel instead of conventional jet fuel.
The Commission put the value of the allowance allocation in addition to around €135 million linked to the zero-rating of SAF on ETS-covered routes, taking the total 2025 incentive to about €565 million. Airlines claimed more than 530,000 tonnes of SAF in 2025, mainly biofuels and advanced biofuels, which the Commission estimates avoided about 1.7 million tonnes of carbon dioxide.
The SAF support mechanism was introduced under the EU ETS Directive in 2023 to narrow the cost gap between fossil jet fuel and eligible alternatives. The scheme treats all airlines equally and applies only to operations subject to EU carbon pricing.