Brussels encourages the use of sustainable fuels in aviation to reduce emissions by 55% in 2030

The European Commission will encourage the use of sustainable aviation fuel (SAF) in the aviation sector through tax exemption, as proposed on Wednesday within its package of measures, called ‘Fit for 55’, with which it wants to pave the way to the goal of reducing emissions of 55% in 2030 (compared to the records of 1990).

Under the ‘ReFuelE’ initiative, sustainable and alternative aviation fuels will benefit from a zero minimum tax rate.

Therefore, airlines will be obliged to load aviation fuel mixed with SAF when leaving EU airports. In addition, it also forces fuel suppliers to include more SAF in jet fuel from 2030 to 2050, increasing to 5% by 2030 and 63% by mid-century.

The proposal promotes, firstly, advanced biofuels and synthetic fuels produced from green electricity and in line with the sustainability requirements of the revised Renewable Energy Directive (RED).

“These fuels are promising in terms of emissions savings, innovation potential and scalability to meet future needs,” said the Executive.
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“CO2 emissions must have a price to encourage consumers, producers and innovators to choose clean technologies and products,” said the President of the European Commission, Ursula von der Leyen, when presenting the main lines of the new ‘roadmap’ to place the European Union at the head of the international climate fight and justify that the aviation and maritime sectors will also be included in the European system emissions trading (ETS).

CHANGES IN TAXATION

In the tax section, the Commission introduces minimum tax rates applicable to aviation fuels used on intra-Community flights, which “will allow better account to be taken of the environmental cost of fossil fuels and stimulate the use of more sustainable aviation fuels”.

Thus, the proposed tax rates for aviation fuel will gradually increase over a period of ten years to reach a minimum rate of €10.75/GJ across the EU.

In addition, in order to reduce pollution and noise from stationary aircraft, the proposal introduces an obligation to supply electricity to all stationary aircraft at airports in the TEN-T core network and global network instead of aviation fuel. This obligation shall apply to all boarding gates, from 2025, and to all field posts, from 2030.

It is also proposed to eliminate the mandatory exemption from the tax on fuel used on intra-Community flights.

However, bearing in mind that on intra-Community flights there is a high market share of cargo-only flights which cannot be taxed due to international agreements, the Directive proposes to exempt cargo-only flights from fuel tax. In this way, “a level playing field between EU and third-country cargo carriers will be maintained”.

In this context, Iberia and Repsol have signed a collaboration agreement to move towards more sustainable mobility through fuel, among other objectives, which is part of the Sustainable Development Goals (SDGs) promoted by the United Nations through the 2030 Agenda.

The CEO of Repsol, Josu Jon Imaz, and the president of Iberia, Javier Sánchez-Prieto, have formalized the agreement, which translates into the development of joint programs and activities in the fields of research and production of aviation fuels of sustainable origin, capable of reducing the carbon footprint derived from their combustion in flight.

Source: The Energy Newspaper