Global Aviation Sustainability Outlook 2026

Page 22 of 71 · WEF_Global_Aviation_Sustainability_Outlook_2026.pdf

European SAF policy3.2 SAF policy Last year proved pivotal as the first SAF mandate policies came into effect, with both the EU and UK requiring aviation fuel suppliers to ensure 2% SAF blending for all flights (domestic and international) departing from EU and UK airports, from January 2025. Switzerland was included in the mandate from January 2026. While the early-stage implementation of such regulation has boosted demand for SAF, challenges remain on ramping up actual SAF production to meet the mandates, especially for e-SAF. Specific e-SAF sub-targets are expected to be set by UK and EU regulators from 2028 and 2030, respectively, ahead of steeper mandates from 2030 onwards in both regions. To speed up the development of SAF production in Europe, both the EU and UK have come up with their own incentive schemes, outlined below. EU incentives for SAF Through the EU’s Sustainable Transport Investment Plan (STIP) announced in November 2025, the bloc aims to mobilize over €2.9 billion by the end of 2027 to support the scaling-up of SAF production, including €500 million for double-sided auctions to fund e-SAF plants, organized by a new e-SAF Early Movers Coalition that brings together Austria, Finland, France, Germany, Luxembourg, the Netherlands, Spain and Portugal. The first auction is planned for 2026, with an intermediary mechanism for double auctions at wider EU level by 2028. Beyond fiscal incentives, the STIP also opens the door to further policy support, notably by acknowledging the potential extension of EU Emission Trading System (ETS) allowances support for SAF and the assessment of book-and-claim options to further expand the market. While several executives interviewed for this report expressed confidence in the direction taken by Europe – especially given an increasingly restrictive policy environment in the US (see below) – other respondents questioned the effectiveness of e-SAF policies amid challenging economics, high prices and technology risk. As mentioned in the previous section, some industry actors are either expecting or actively advocating for Europe to backtrack on its e-fuel vision in 2026; meanwhile, multiple stakeholders warned about the need for long- term policy certainty and stressed the importance of sticking to the current ambition and mandate targets, due to concern around the impact of any changes on market and investor confidence. UK incentives for SAF In the UK, provisional data from the Department for Transport published in February 2026 confirmed that SAF represented 2.36% of total jet fuel demand during 2025, exceeding the country’s 2% target.65 To provide more support for the SAF market, the UK is expected to implement a new mechanism by the end of 2026, which aims to support SAF investments by stabilizing the revenue of SAF plants. This mechanism is expected to alleviate one of the significant barriers to SAF production scale- up: unlocking investment and access to capital. Türkiye In July 2025, Türkiye announced a mandate to reduce the emissions of international flights to and from the country by 5% by 2030, through the use of SAF.66 Beyond its established role in decarbonizing aviation, power- to-liquid technology is emerging as a powerful lever for energy resilience and defence preparedness. e-SAF cuts reliance on geopolitically exposed and heavily concentrated fossil fuel supply chains. This is a strategic necessity globally — especially in Europe — and requires decisive government leadership, not delay from narrow corporate interests. Jan Toschka, CEO, Zaffra Global Aviation Sustainability Outlook 2026 22
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