A European aviation industry coalition has welcomed the inclusion of sustainable aviation fuel as a ‘strategic net zero technology’ under the EU Net-Zero Industry Act (NZIA), which has received provisional agreement between the European Parliament and Council. The Act is a central part of the EU’s Green Deal Industrial Plan, which aims to follow the example of the United States’ Inflation Reduction Act in stimulating domestic manufacturing capacity in clean energy technologies, with the intention of reaching at least 40% of expected EU demand by 2030. The European Commission says the Act will create the regulatory conditions necessary to attract and support investment, and help build more production facilities in a faster manner. The Commission has also recommended an EU-wide 90% net GHG emissions reduction target by 2040 compared to 1990 levels and put forward a series of measures to achieve it, including through the use of SAF. The industry alliance said while the inclusion of SAF in the NZIA would pave the way for the development of a strong EU SAF market, further policy action was needed to meet the updated 2040 climate ambitions.

The NZIA will enhance the competitiveness and resilience of the European cleantech industry and support the creation of green, quality jobs as the EU seeks to reach climate neutrality by 2050, claims the Commission. The regulation identifies a broad set of net zero technologies that can be supported through strategic projects such as solar photovoltaic, onshore and offshore wind, fuel cells, electrolysers, batteries, grid technologies and sustainable alternative transport fuels, including SAF.

“The NZIA political agreement is a significant stride towards realising our ambitious climate and economic objectives,” said the Commission’s President, Ursula von der Leyen. “It demonstrates our collective commitment to build a more sustainable, resilient and competitive industrial sector in Europe. Together, we are making the EU a global frontrunner in the clean energy transition.”

The Act aims to create a simplified and enabling regulatory environment that will reduce the administrative burden for cleantech manufacturing, accelerate CO2 capture and storage in the EU, facilitate market access for net zero products and support the development of net zero skills and innovation. It also foresees the creation of a ‘Net-Zero Europe Platform’ to serve as central coordination hub, fostering information and exchange to facilitate the implementation and supporting investment of initiatives throughout the EU.

Renewable hydrogen is seen as one of the key technologies of the NZIA and indispensable in reaching the EU’s 2030 climate targets and 2050 climate neutrality. “By scaling up its production, we will reduce the use of fossil fuels in European industries and serve the needs of hard-to-electrify sectors,” said the Commission. To this end, it is to set up the European Hydrogen Bank to support the uptake of renewable hydrogen within the EU, as well as imports from international partners, and unlock private investments in hydrogen value chains.

The EU has a legal target to reduce GHG emissions by 55% by 2030 compared to 1990 levels and has adopted a ‘Fit for 55’ legislative package to accomplish this goal, including the ReFuelEU regulation on mandating SAF uptake at EU airports. The new recommendation for a 90% reduction by 2040 target will help European industry, investors, citizens and governments to make decisions in this decade that will keep the EU on track to meet its climate neutrality objective in 2050, says the Commission.

“It will send important signals on how to invest and plan effectively for the longer term, minimising the risk of stranded assets,” it said on announcing the target. “With this forward-planning, it is possible to shape a prosperous, competitive and fair society, to decarbonise EU industry and energy systems, and to ensure that Europe is a prime destination for investment, with stable future-proof jobs.

“The EU will continue to develop the right framework conditions to attract investment and production. A successful climate transition should go hand-in-hand with strengthened industrial competitiveness, especially in cleantech sectors. Public investment should be well targeted with the right mix of grants, loans, equity, guarantees, advisory services and other public support. Carbon pricing should continue to play an important role in incentivising investments in clean technologies and generating revenues to spend on climate action and social support for the transition.”

Achieving the target would require both emissions reductions and carbon removals, added the Commission, with the deployment of carbon capture and storage technologies, as well as the use of captured carbon in industry. Carbon capture should be targeted to hard-to-abate sectors where alternatives are less viable and carbon removals will also be needed to generate negative emissions after 2050.

Under the ReFuelEU Aviation regulation, aviation fuel suppliers are obligated to ensure that all fuel made available to aircraft operators at EU airports incorporate 6% SAF in 2030, with 1.2% of fuels in 2030 being synthetic fuels. From 2040, the minimum share of SAF rises to 34%, of which a minimum share of 10% of synthetic fuels, reaching 70% and 35% respectively by 2050.

The 2040 recommendation will be followed by a legislative proposal made by the next Commission, after the European elections in June.

The inclusion of SAF in the NZIA is only the first step in developing a world-leading SAF industry in Europe, said the Destination 2050 cross-industry alliance of European airline, airport, civil aeronautics industry and air navigation service providers, which came together in 2021 to commission and then publish a decarbonisation roadmap for the European aviation sector.

“The Commission’s communication recommending the new 2040 target expressly recognises the need to address barriers to SAF deployment at scale, giving the aviation sector priority access to feedstocks and putting incentives in place to close the price gap between SAF and conventional kerosene. SAFs are a crucial component that will enable European aviation to accelerate its decarbonisation, in full alignment with the bloc’s ambitious climate agenda,” said a statement by the five members of the alliance – Airlines for Europe, ACI Europe, ASD, CANSO Europe and European Regions Airline Association.

“The international race to become a SAF leader has started and further policy incentives to scale up the production and uptake are required for Europe to become a leader in the global competition for SAF. These include the extension of the SAF flexibility mechanism beyond 2034; the extension of the current 20 million allowances threshold and 2030 time-limit under the SAF allowances mechanisms; and increased financial support for development of SAF, including through the Innovation Fund, as well as simplifying the administrative procedure for accessing these funds.”

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The European Parliament has approved the ReFuelEU Aviation regulation that will oblige fuel suppliers to blend increasing levels of sustainable aviation fuels, including synthetic fuels, in jet fuel taken on-board at EU airports. Starting from 2025, at least 2% of aviation fuels will be green, with this share increasing every five years to reach 6% in 2030, 34% in 2040 and 70% in 2050. In addition, a specific proportion of the fuel mix – 1.2% in 2030, 2% in 2032, 5% in 2035 and progressively rising to 35% in 2050 – must comprise synthetic fuels, such as e-kerosene. According to the new rules, the term ‘sustainable aviation fuels’, will include synthetic fuels, certain biofuels produced from agricultural or forestry residues, algae, bio-waste, used cooking oil or certain animal fats, and recycled fuels produced from waste gases and waste plastic. The adoption of the regulation by MEPs has been welcomed by representatives of the European aviation industry.

The new rules were adopted by 518 votes in favour, 97 against and eight abstentions, and once approved by EU member states through the European Council, will apply as of 1 January 2024 and some provisions as of 1 January 2025.

The ReFuelEU Aviation initiative is part of a package of policy proposals, known as ‘Fit for 55’, by the European Commission to reduce the EU’s GHG emissions by at least 55% by 2030, compared to 1990 levels.

“This is a tremendous step towards the decarbonisation of aviation,” commented the Parliament’s rapporteur, José Ramón Bauzá Diaz. “It is now time for EU governments to implement the new rules and support the industry to ensure the cost-effective deployment of sustainable aviation fuels across Europe as well as meeting EU targets. There is no time to lose.”

Under the rules, feed and food crop-based fuels, plus fuels derived from palm and soy materials will not be classified as green as they do not meet agreed sustainability criteria. As they see it as a promising technology, MEPs agreed to include renewable hydrogen as part of the sustainable fuel mix.

“In a complex and competitive world, I fully believe that ReFuelEU is a great opportunity to position the European Union as a global leader in the production and use of SAF,” said the rapporteur.

A joint statement by five European aviation industry associations representing airlines, airports, the civil aeronautics sector and air navigation service providers, said the legislation would back up their Destination 2050 roadmap published in February 2021 that laid out a strategy to reach net-zero CO2 emissions from all flights departing the EU, UK and EFTA by 2050, with SAF a “crucial component”.

They said the clear signal to investors and industrial partners would ensure the required uptake of SAF consumption and boost the European SAF industry. To become a global SAF leader, the ReFuelEU Aviation regulation should be complemented with further incentives to scale up SAF production and uptake in Europe, they suggested. They called for the inclusion of SAF into the EU Net-Zero Industry Act, mirroring the US approach in the Inflation Reduction Act.

Wider promotion of SAF around the world is also strongly recommended, said the Destination 2050 partners. “We call on states and the wider aviation industry across all world regions and at a global level to join forces and rally around ambitious and credible SAF objectives – to ensure aviation globally remains on track to attain the ICAO Long-Term Aspirational Goal of global net zero carbon emissions by 2050.

“A robust worldwide climate policy framework for SAF is needed. The November ICAO Conference on Aviation Alternative Fuels (CAAF/3) is a unique opportunity to put in place the right milestones and to deliver ambitious targets for SAF deployment worldwide.”

In further efforts to decarbonise the aviation sector and to better inform the public, MEPs also adopted a rule that as of 2025, there will be an EU label for the environmental performance of flights. Airlines will be able to market their flights with a label indicating the expected carbon footprint per passenger and the expected CO2 efficiency per kilometre. This is intended to allow passengers to compare the environmental performance of flights operated by different airlines on the same route.

The Parliament’s plenary session also agreed revisions to the Renewable Energy Directive, which includes rules on the eligibility of raw materials permitted in sustainable biofuels.

Welcoming the adoption of both pieces of legislation, Finnish renewable fuels producer Neste said they would create demand certainty and attract investment.

“Demand for renewable energy is only set to grow as we strive to meet our climate goals,” said Minna Aila, EVP Sustainability & Corporate Affairs at Neste. “We are better equipped to meet this demand if we have consistency in our legislation. Consistency allows stakeholders across the value chain to invest in the creation and provision of greater volumes of renewable products over a longer term and continue research and development in this field.”

Editor’s note: The ReFuelEU Aviation regulation and the ICAO CAAF/3 conference will be featured in sessions at Aviation Carbon 2023, co-organised by GreenAir News, taking place November 6/7 in London. GreenAir’s airline and aircraft operator readers can attend both days for free (subject to availability and T&Cs) by using the discount code 23-GREENAIR-100 when registering. Other readers can benefit from a special 20% discount by using the code 23-GREENAIR-20. The earlybird rate expires at the end of September so early booking highly recommended.

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To achieve the European aviation sector’s ambition of achieving net zero emissions by 2050, additional expenditures amounting to €820 billion ($900bn) are required between 2018 and 2050, finds a study commissioned by five industry associations. These additional or ‘premium’ costs, mostly to be spent on alternative fuels, are on top of business-as-usual (BAU) expenditures, such as fleet renewal, which are required for the net zero transition. BAU expenditures over the 2018-2050 period are estimated at €1,068 billion, bringing the total expenditures towards reaching net zero at just under €1.9 trillion. The report just published, ‘The price of net zero’, determines financing in-sector sustainability measures yields substantially lower costs than realising the same emission savings through out-of-sector carbon reductions. The study follows up the industry’s Destination 2050 roadmap published in 2021.

The five Destination 2050 partners – A4E (airlines), ACI Europe (airports), ASD Europe (aerospace manufacturers) CANSO (air navigation service providers) and ERA (regional airlines) – commissioned consultancies SEO Amsterdam Economics and the Royal Netherlands Aerospace Centre to calculate the expenditures necessary to achieve the targets set out in the roadmap and accelerate European aviation’s decarbonisation.

“Although challenging to do an accurate assessment of the price of reaching net zero for the European aviation sector, we have commissioned this scientific study to establish a better understanding,” said the partners. “We are firmly committed to a climate neutral European aviation in line with the EU climate goals and the Paris Agreement targets. Therefore, decarbonisation is at the heart of our business.”

Of the €1.9 trillion, fleet renewal is found by the study to be the largest expenditure (43%) of which the BAU scenario represents over 90% and premium expenditure (the additional expenditures to be made above BAU) of around 10% (€740 billion and €80 billion respectively). However, the significant investment would result in a €188 billion saving in fuel costs and a further €78 billion saving in carbon pricing.

Expenditure on alternative fuels, which includes drop-in sustainable aviation fuels, hydrogen and renewable electricity, is the second largest expenditure (40%), with premium expenditures representing nearly 59% and BAU just over 41% of the costs (€441 billion and €310 billion respectively).

Other premium expenditures are required for air traffic management (€20 billion), ground operations (€9 billion), R&D in future aircraft (€100 billion), airport infrastructure adaptation (€18 billion) and carbon pricing and economic measures (€152 billion).

The use of economic measures, including negative emission technologies, accounting for about 19% of the premium expenditure, is required to compensate for all emissions remaining after the application of the in-sector activities. Both the EU Emissions Trading System (EU ETS) and ICAO’s CORSIA scheme are essential to reach net zero, say the partners.

However, they add: “Economic measures must be effective and focused on driving the required decarbonisation processes forward through positive incentives attracting in- and out-of-sector capital. On the contrary, taxation and operational restrictions will hamper the industry’s ability to invest and innovate due to a diminished financial capacity and in turn jeopardising the global competitiveness of European aviation.”

They “strongly recommend” revenues from the EU ETS be reused within the sector to support and incentivise breakthrough technologies, infrastructure and SAF production.

The report says financing in-sector sustainability measures yields substantially lower costs than realising the same emission savings through out-of-sector carbon reductions. It compares European airline revenues of an estimated €145 billion in 2018 with combined average annual expenditures towards net zero of €59 billion.

“The aviation sector’s expenditures towards achieving net zero are substantial and are dependent on access to finance from the private and public sector. This is vital when capital reserves are insufficient to make large upfront payments for new aircraft and infrastructure,” said the partners.

“Only with the right set of incentives and policies can the required capital be made available for the sector’s decarbonisation. This means timely and effective measures bringing long-term clarity and predictability for investors. Regulatory frameworks must encourage low carbon technology deployment.”

Photo (Fraport AG): Frankfurt Airport

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A summit of 37 European countries, the European Commission and representatives from nearly 150 companies and stakeholders convened by the French government, which currently holds the presidency of the Council of the European Union, has affirmed support for the goal of achieving carbon neutrality in the air transport sector by 2050. Signatories to the ‘Toulouse Declaration’ have pledged to implement a basket of measures “with effective and ambitious interim milestones” to accelerate the transition of both the European as well as the international aviation sector to reach net zero carbon emissions by 2050. The United States, Canada, Morocco and Japan also took part in the summit and backed the Declaration. Another participant was Salvatore Sciacchitano, President of the ICAO Council, who commended the Declaration and its ambition for strengthening ICAO’s CORSIA international carbon offsetting scheme and the adoption of a long-term CO2 reduction goal at the UN agency’s assembly later this year.

Speaking at the conclusion of the European Aviation Summit, French transport minister Jean-Baptiste Djebbari commented: “Today, a new chapter in aviation history is being opened. In committing to reducing the carbon emissions of air transport by 2050, Europe is leading by example. All of us – governments, industry stakeholders, associations – have come together to rally behind this goal. We shall proudly and in unison uphold it on an international level.”

The summit held last week in Toulouse brough together the 27 EU member states and 10 other member states of the European Civil Aviation Conference (ECAC), including the United Kingdom, Switzerland and Norway. Working sessions were held at ENAC, the French National School of Civil Aviation, which included a presentation of a study of citizens of a dozen countries – Brazil, China, Egypt, France, Germany, India, Indonesia, Russia, South Africa, Turkey, the UK and the United States. The study highlighted citizens’ desire to both continue travelling and their strong expectations for air transport decarbonisation.

“They hope for a firm commitment from the air sector on a global level and particularly count on biofuels and new engine technologies (electric and/or hydrogen), despite being aware of the rise in prices that this will entail,” reported the French presidency.

The basket of measures to achieve the net zero goal include aircraft technology advancement, improvements in operations, the use of sustainable aviation fuels, market-based measures, carbon pricing, financial incentives and support to foster environmental and climate innovation in the air transport sector, of which “a number are addressed in the [EU’s] Fit for 55 package,” notes the declaration. It calls for “a regular and constructive dialogue, in Europe and worldwide, on the decarbonisation of aviation between authorities, industry and civil society” and for partners worldwide to work together for the adoption at this year’s ICAO Assembly of an ambitious long-term aspirational goal for international aviation of net zero carbon emissions by 2050.

The declaration also emphasises a need to address the non-CO2 impacts of aviation based on on-going research and “recognising that many CO2 reduction measures in aviation also reduce non-CO2 impacts”.

It also “invites other countries and international organisations to join this declaration, engage in the development of sectoral roadmaps, and work together towards sustainability and decarbonisation of aviation worldwide.” The declaration reaffirms the commitments set out in the UK-brokered declaration of the International Aviation Climate Ambition Coalition agreed by 25 countries at COP26 last November.

The European aviation industry last year set a goal of net zero carbon emissions by 2050, with an interim 2030 target of reducing carbon emissions on intra-European flights by 55% compared to 1990 levels, in line with the EU’s ‘Fit for 55’ climate goal. At the same time, the Destination 2050 roadmap, the work of the five major industry associations, was published on how the goals could be achieved. The sector proposed an ‘EU Pact for Aviation Decarbonisation’ between industry and national and EU policymakers to agree on targets and the alignment of the roadmap with the enabling of the necessary regulatory and financial framework.

“The Destination 2050 partners now expect the Toulouse Declaration to be translated into a structured dialogue and concrete policy action,” commented the five industry associations representing airlines, manufacturers, airports and air navigation – A4E, ACI Europe, ASD, ERA and CANSO – in a joint statement. “Industry is already transitioning to a decarbonised future through improvements in aircraft and engine technologies, the development of sustainable aviation fuels, improvements in air traffic management and aircraft operations, as well as through efficient economic measures.”

Urging the Commission and EU Member States signing the Declaration to develop and support its proposed Pact, the industry partners called for public and private funding to channel investments, R&D and innovation into decarbonisation and a more sustainable aviation ecosystem, and by including relevant aviation activities into the EU taxonomy for sustainable finance.

They also proposed initiatives and incentives for:

• The earmarking of revenues from the EU ETS to support decarbonisation activities;
• More sustainable airport infrastructure, operations and related services, including through the Airport Carbon Accreditation programme;
• Public incentives for the deployment of sustainable aviation fuels;
• Fleet renewal coupled with aircraft retirement, and bringing zero-emission aircraft to market by 2035, including through the supply and airport infrastructure deployment of green hydrogen and electricity; and
• A more sustainable, network-centric, modern and digital air traffic management system through the Single European Sky and SESAR.

The partners also call on the European Commission to implement the launch of industrial alliances to align the entire ecosystem around the joint ambition. While supporting Europe’s ambition for global action on agreeing a long-term aspirational goal at ICAO, they stress that it must preserve a level playing field and international competitiveness.

Photo: Toulouse-Blagnac Airport (© Philippe Garcia)

The European aviation industry has unveiled a pathway to reach net-zero emissions by 2050 through improvements in aircraft and engine technologies, the use of sustainable aviation fuels, improvements in air traffic management and implementing economic measures. The ambition is based on a commissioned report, Destination 2050, that assumes an impact on demand for flying as a result of the measures but with European air passenger numbers still projected to grow by 1.4% per year on average between 2018 and 2050. The report expects pre-Covid 2019 to have been the peak year for European aviation carbon emissions, which totalled around 183 million tonnes. Although the impact of new aircraft technologies, such as hydrogen power, and sustainable aviation fuels (SAF) will not materialise until after 2030, the report expects emissions from intra-European flights will be reduced to 55% of 1990 levels by 2030 and so contribute to the goals of the European Green Deal, mainly as a result of economic measures. Post-2030, hydrogen-powered aircraft will be the main contributor to the sector’s emissions reduction on intra-European routes, backed up by drop-in SAF used on extra-European flights.

Making European aviation net-zero by 2050 a reality will require quick, decisive joint actions by governments and industry, said industry leaders launching the report. Industry will need to continue to substantially invest in decarbonisation and innovation, and make the necessary operational transitions, while governments will need to ensure a level playing field and facilitate the transition through incentives and by reducing investment risks with consistent and stable policy frameworks, they said.

The Destination 2050 initiative is led by the five European associations representing airlines (A4E and ERA), airports (ACI Europe), manufacturers (ASD Europe) and air traffic management (CANSO). The report was compiled by the Royal Netherlands Aerospace Centre (NLR) and SEO Amsterdam Economics.

A reliance on economic measures to reduce emissions on intra-EU+ (EU, UK and EFTA) flights is extensive in the period up to 2030, says the report, but is significantly reduced towards 2050 as time is required before the most substantial emission reductions measures in the form of new technology and sustainable aviation fuels enter the market, but these will need policy support, it finds.

“Robust economic measures and much needed government and regulatory support in the short term will be necessary to bridge the gap until innovation, technology and SAF become more widely available to help our industry reach its environmental targets,” said European Regions Airline Association (ERA) Director General Montserrat Barriga.

Economic measures assign a price to CO2 emissions, ensuring airlines take climate costs into account in their business decisions, with the EU ETS the mechanism applying to intra-EEA flights, which will be complemented by the ICAO CORSIA scheme for international flights. The report assesses compliance costs to European airlines would likely amount to around €4.1 billion by 2030 to offset 57 MtCO2 – calculated at €60 per tonne CO2. This would fall to €3.6 billion by 2050 to offset 27 MtCO2, although the carbon price could rise to €165/tonneCO2 as allowances and carbon credits become increasingly scarce. Direct air capture is seen as an important enabling technology for deployment in the short to medium term in order to create high quality allowances and credits.

Economic measures are expected to remove only 1% of CO2 emissions from intra-EU+ aviation after 2030 as new technology – principally from hydrogen and SAF – becomes widely available. Contrary to that for intra-EU+ flights, the reliance on economic measures increases slightly after 2030 for departing flights from Europe.

The level of SAF uptake is still relatively limited in 2030, predicts the report, achieving a saving of 7 MtCO2, or contributing to around 3% of total reduction measures. However, it points out, those efforts will be needed so as to yield much higher benefits of SAF beyond 2030 as production capacity will be increased and other production processes reach maturity. By 2050, SAF could contribute around 34% of aviation CO2 reduction measures, with a higher proportion from non-EU+ flights as hydrogen power would play a bigger role in intra-EU+ aviation. SAF volume is forecast by the report to increase from 3 Mt (6% of total kerosene volume) in 2030 to 32 Mt (83% of total kerosene volume) by 2050. Almost 90% of all energy used in aircraft operations in 2050 is expected to come from a renewable source.

An array of improvements in ATM and aircraft operations, including the Single European Sky (SES), could yield a 5 to 6% system-level CO2 emissions reduction in 2030 and 2050, with most of these improvements being realised by 2035. To enjoy the full benefits of the SES, it is imperative to move more towards a network-centric and digital ATM system and requires political willingness, says the report.

To reach European aviation net zero emissions, it estimates a total saving of 250 MtCO2 in 2050 (from a 2018 base year) could result from the effect of the following sustainability measures:

• 111 MtCO2 through improvements in aircraft and engine technology (60 MtCO2 by hydrogen-powered aircraft on intra-European routes and 51 MtCO2 by kerosene powered or hybrid/electric aircraft);
• 18 MtCO2 through improvements in ATM and aircraft operations;
• 99 MtCO2 through using drop-in SAF; and
• 22 MtCO2 through economic measures (carbon removal projects only).

As well as collaboration between stakeholders and setting a coherent long-term policy framework, the authors of the report recommend the EU aviation industry and government should work towards ensuring a global commitment to a net-zero future for aviation that aligns with the Paris Agreement and the 1.5 degree IPCC scenario.

“The current ICAO work on defining a global long-term aspirational goal … is a key opportunity to realising this ambition. If a global net-zero target cannot be agreed upon, global and European goals should at least be brought closer together,” they say.

Commenting on the report and the net-zero goal, Airlines for Europe (A4E) Managing Director Thomas Reynaert said: “This long-planned vision and roadmap for the future of European aviation underlines our sector’s commitment and determination to play our part in tackling climate change despite the current crisis. A robust regulatory framework will be paramount in achieving not only an environmentally sustainable future, but also a financially resilient and competitive European aviation industry as a whole. We remain committed to work with policymakers to take aviation forward jointly for the next generation of travellers.”

Added Olivier Jankovec, Director General at airports body ACI Europe: “The decisive and tangible actions set out in this roadmap are unprecedented. Here we have an entire sector not just committing to decarbonisation but actually charting the path to make it happen and effectively contribute to the EU’s climate objectives and the Paris Agreement. But whilst we embrace our responsibilities, it is clear that we cannot do this alone. It takes two to tango. Now we need the EU to deliver the policy and regulatory framework that will enable us to deliver net-zero European aviation by 2050. We therefore urge institutional stakeholders to respond to our call and join the EU Pact for Sustainable Aviation we tabled last November.”