EcoCeres Warns Against EU Tariffs on Imported Sustainable Aviation Fuel
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Biofuel producer EcoCeres warns potential EU trade measures on imported SAF could hinder climate goals by limiting supply and reducing competition.
Key Takeaways
- •Warns that EU import tariffs on sustainable aviation fuel could jeopardize climate goals.
- •Highlights a direct conflict with ReFuelEU mandates requiring a 2% SAF blend in 2025.
- •Argues open trade is essential as current SAF production is only 0.53% of jet fuel use.
- •States protectionism would slow aviation's path to net-zero emissions by 2050.
Biofuel producer EcoCeres has issued a warning against potential European Union (EU) trade defense measures on imported Sustainable Aviation Fuel (SAF), arguing that such actions could undermine the bloc's own climate goals and stifle market competition. The company emphasizes that an open trade policy is critical for meeting the rapidly growing demand for SAF, a key component of the aviation industry's decarbonization strategy.
The warning comes as the EU prepares to implement its landmark ReFuelEU Aviation regulation, which sets legally binding targets for SAF blending at EU airports. According to the regulation, a minimum of 2% of all jet fuel supplied must be SAF starting in 2025, a figure that rises to 6% in 2030 and 70% by 2050. Any trade barriers that increase the cost or limit the availability of SAF could directly conflict with these mandates, putting airlines and fuel suppliers in a difficult position.
The Challenge of Scaling SAF Supply
The core of the issue lies in the current state of the global SAF market. According to the European Union Aviation Safety Agency (EASA), SAF production in 2024 accounted for only 0.53% of global jet fuel usage. This production level is far below what is needed to meet the upcoming mandates. The International Air Transport Association (IATA) estimates that SAF could contribute around 65% of the emissions reduction necessary for aviation to achieve its net-zero carbon emissions goal by 2050.
However, significant economic hurdles remain. EASA data also shows that SAF is currently 3 to 10 times more expensive than conventional jet fuel. EcoCeres argues that introducing import tariffs or other trade defense measures would exacerbate this price disparity, potentially slowing airline adoption and making compliance with ReFuelEU targets more challenging.
In a statement, Matti Lievonen, CEO of EcoCeres, outlined the potential negative consequences. “If we are serious about meeting climate targets, we cannot afford to close the door on competitive SAF supply,” he said. “Trade defence measures that make SAF even more expensive or harder to access would run directly against the spirit of ReFuelEU – they would discourage airlines from switching away from fossil jet fuel, reinforce market concentration that primarily benefit a small number of EU-based producers and ultimately delay progress towards the EU's short- and long-term climate goals.”
Regulatory and Trade Context
The ReFuelEU Aviation initiative is a central pillar of the EU's broader 'Fit for 55' package, which aims to reduce the bloc's net greenhouse gas emissions by at least 55% by 2030. The regulation also includes a sub-mandate for synthetic fuels, or e-fuels, which must constitute 1.2% of the fuel mix in 2030, rising to 35% in 2050.
Potential EU trade defense instruments, such as anti-dumping or anti-subsidy duties, are designed to protect European producers from what the European Commission deems unfair foreign competition. EcoCeres' concern is that these tools could be applied to the nascent SAF market, effectively creating a protectionist environment that limits supply to a few EU-based producers and inflates costs across the board. The aviation decarbonization effort relies on a global SAF supply chain, with producers in Asia and the Americas poised to supply the European market to help meet mandated demand.
What Comes Next
The European Commission will be the authority to decide whether to investigate or impose any trade defense measures. The aviation and renewable fuel industries will be closely monitoring any signals from Brussels regarding its stance on SAF imports. For airlines, the outcome will have a direct impact on operational costs and their ability to meet sustainability targets. A move toward protectionism could force a greater reliance on a limited pool of European producers, potentially creating supply bottlenecks and further driving up the price premium for SAF.
Conversely, maintaining an open market would foster global competition, likely leading to lower prices and a more resilient supply chain. This approach would align more closely with the urgent need to scale SAF production globally to support the industry's transition away from fossil fuels, a transition in which SAF is expected to reduce CO2 emissions by up to 80% over its lifecycle compared to conventional jet fuel.
Why This Matters
This development highlights a fundamental tension between environmental policy and trade protectionism. The EU's decision on SAF imports will be a critical test of its commitment to rapid decarbonization, revealing whether it will prioritize the accelerated, cost-effective adoption of green fuels or the protection of its domestic industry. The outcome will set a precedent for the global SAF market and significantly influence the financial and logistical feasibility of aviation's net-zero ambitions.
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Written by Ujjwal Sukhwani
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.
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