In Belgium, the European Comission said that on 6 February 2025, it adopted a Delegated Regulation setting out the European Union (EU) rules for the support system established and financed by the EU Emissions Trading System (EU ETS), to speed up the use of sustainable aviation fuels. The European Climate Law sets an economy-wide target of at least 55% net greenhouse gas emission reductions by 2030 compared to 1990 levels. Alongside carbon pricing, the EU ETS funds an Innovation Fund to support innovative clean tech projects, including in the aviation sector aiming to reduce the sector’s climate impacts[1], as well as specific support to bridge the cost difference for the use of alternative fuels. “The 2023 revision of the EU ETS Directive provides a support mechanism for the use of eligible aviation fuels. To incentivize early uptake of the best-performing alternative fuels in terms of emissions reduction potential, 20 million EU ETS allowances, estimated at around $1.6 billion, are set aside from 1 January 2024,” the commission said. “The allowances cover all or part of the remaining price differential between fossil kerosene and the eligible aviation fuels used by individual commercial aircraft operators on their flights covered by effective carbon pricing through the EU ETS. A level playing field is ensured, with all airlines that operate on these routes being treated equally,” it added.
More on the story.