EU quota for sustainable jet fuel cannot be met, Fraport CEO says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 19 2024
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Source: reuters
- Sustainable Aviation Fuel (SAF) Production: Producers in the EU are unable to increase output quickly enough to meet quotas, according to Fraport CEO.
- Environmental Impact: SAF, made from bio-based materials, can reduce carbon emissions by up to 80% compared to traditional fuel, making it essential for sustainability in the aviation sector.
- EU Regulations: The EU has set rules requiring flights from EU airports to carry increasing amounts of SAF, with quotas rising to 70% by 2050 and starting at 2% in 2025.
- Challenges in Production: Slow uptake is due to factors like high costs (3-5 times more than traditional jet fuel), lack of production certainty, and potential oversupply concerns for SAF producers.
- Industry Response: The head of IATA believes there is sufficient demand for SAF, indicating that all produced SAF has been and will be used.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
