European Commission approves Danish State aid scheme to boost use of SAF

August 3, 2025 |

In Belgium, the European Commission has approved, under EU State aid rules, a $41 million Danish measure aimed at reducing greenhouse gas emissions in the domestic aviation sector. 

This will be achieved through encouraging the use of sustainable aviation fuel for domestic flights. 

The scheme is specifically designed to encourage airlines operating in Denmark to use SAF on domestic routes. It will be in place until December 31, 2027. The goal is to support at least one domestic air route using 40% SAF, which is very close to the current technical limit of 50%. This exceeds the minimum set by the ReFuelEU Aviation regulation, which requires fuel suppliers to achieve a minimum share of 2% during the scheme period, the commission said.

Under the scheme, the aid will take the form of monthly-paid direct grants that will cover the additional costs linked to using SAF compared to conventional kerosene, including costs related to airport infrastructure. The aid level will be determined through a competitive bidding process, ensuring cost-effectiveness and efficiency. The measure will support at least 20 commercial sustainable one-way operations weekly, on one or more domestic routes in Denmark.

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Category: Policy

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