Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

Sustainable aviation fuels, SAFs, are widely recognised as a key element in our efforts to reduce aviation-related emissions in line with our climate goals. This is reflected in the internationally endorsed basket of measures for emissions reduction, which includes increased SAF use, alongside aircraft technology, operational improvements and market-based measures. From both a production capacity and demand point of view, the SAF industry is at an early stage of development and current usage within the EU is at negligible levels. The ReFuelEU legislative proposal, currently under discussion, aims to promote the production and deployment of SAF to significant levels. By mandating the supply of specific levels of SAF, it will provide clarity to the fuel industry that there will be a market for SAF and this, it is expected, will stimulate increased production.

As currently drafted, the proposal will oblige fuel suppliers to supply increasing levels of SAF in aviation fuel to be taken on board at EU airports. This will start in 2025, with the mandated levels of both SAF and advanced synthetic fuels rising every five years out to 2050. Given the early stage of market development, the draft regulation allows for a ten-year transition period during which fuel suppliers can provide the total amount of mandated SAF as a weighted average across the EU, rather than at each EU airport.

The draft regulation will also oblige European Union airports to ensure access to SAF at the airport. As currently drafted, it will mandate airlines to uplift 90% of their journey fuel requirement from the airport of departure, thus increasing SAF usage and reducing fuel tankering, that is, when an aircraft carries more fuel than required for its flight in order to reduce or avoid refuelling at the destination airport.

Use of SAF is further encouraged through provisions in related European legislative proposals. The proposed revision of the energy taxation directive exempts SAF from taxation for a ten-year transitional period, followed by a significantly lower rate than that for conventional jet fuel. The inclusion of free SAF allowances to airlines within the revised emissions trading scheme will also promote their use. A national SAF strategy will need to take account of requirements under these various EU proposals and will be progressed in the context of their implementation. We were at the meeting of EU ministers in Stockholm earlier this week and it was a significant area of discussion. We wish to ensure that Ireland embraces this. That is why the transposition of the EU proposals and developing a national policy context is something we are prioritising.

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