The International Air Transport Association (IATA) welcomed the European Commission’s release of the Sustainable Transport Investment Plan (STIP), recognizing it as a significant step toward accelerating air transport’s decarbonization. IATA noted that the STIP addresses several long-standing weaknesses in the EU’s aviation sustainability strategy, although it falls short of critical industry expectations and requires further action.
IATA’s Director General, Willie Walsh, highlighted the recognition of market challenges and the need for robust investment support.
“We welcome the Commission’s recognition of market challenges that derive from SAF mandates that were flawed from the outset, particularly the price gap between sustainable and conventional fuels, and the need for robust investment support,” said Walsh.
Positive aspects of the plan include:
Extending Sustainable Aviation Fuel (SAF) support under the EU Emissions Trading System (ETS).
Exploring tradable SAF and book-and-claim mechanisms.
Simplifying operator reporting.
Improving access to sustainability certificates via the Union Database (UDB).
Advancing dual conformance of SAF under EU Renewable Energy Directive (RED) and CORSIA to promote global harmonization.
Despite these positive signals, IATA is concerned that the STIP does not go far enough. Walsh stressed the need for the STIP to be the start of a continued review process.
- Enabling SAF Book-and-Claim in Europe
IATA agrees that book-and-claim is a key enabler to overcome SAF supply barriers, promote investment, and ensure a level playing field across Europe.
This system is urgently required, but its implementation is hindered by a misalignment between the flexibility mechanism under ReFuelEU Aviation and the rules for claiming SAF under EU ETS.
IATA urges the Commission to implement necessary amendments to the EU ETS Directive during its upcoming review to allow for EU-wide purchase-based claiming of SAF.
The enhancement of the Union Database (UDB) is also critical and must be expedited.
- Prioritizing Demand-Side Considerations
The plan must give due consideration to aircraft operators as end-users. Operators require a predictable SAF market with clear price transparency to plan effectively.
The current framework exposes aircraft operators to unjustifiably higher prices for jet fuel and SAF.
While increasing investment in SAF production is necessary, the STIP must equally prioritize the creation of a transparent and open SAF market that encourages both supply and demand.
A robust UDB is vital for this effort, and IATA urges the Commission to expedite its enhancement work.
- Technology-Neutral SAF Support
The STIP acknowledges the role of biofuels but continues to prioritize e-SAF (synthetic fuels). IATA’s research shows that Europe has significant untapped potential for sustainable feedstocks from advanced residues and waste streams that can produce advanced biofuels.
A technology-neutral approach—supporting both biofuels and e-SAF—is essential to maximize all SAF types, which are necessary to reach the targeted 500 million tonnes (Mt) of SAF in 2050.
Limiting support risks undermining the scalability and cost-effectiveness of SAF deployment and could commensurately delay CO2 emissions reductions.
“IATA stands ready to work constructively with the Commission to address these gaps and ensure that the STIP delivers a coherent, investment-ready framework,” Walsh concluded.
IATA asks the EU Commission to clarify the timelines for materializing key flagship actions, particularly in consideration of the reviews of the EU ETS and ReFuelEU Aviation. The airline industry is committed to net-zero carbon emissions by 2050, but this ambition requires policy frameworks to be fully aligned with industry needs and the true scale of the challenge.
