In the UK, International Airport Review reported that the International Air Transport Association (IATA) stated that EU and UK SAF mandates are limiting supply and raising costs for airlines.
“SAF production growth fell short of expectations as poorly designed mandates stalled momentum in the fledgling SAF industry. If the goal of SAF mandates was to slow progress and increase prices, policymakers knocked it out of the park. But if the objective is to increase SAF production to further the decarbonisation of aviation, then they need to learn from failure and work with the airline industry to design incentives that will work,” said Willie Walsh, IATA’s Director General.
In the UK, SAF mandates have triggered price spikes, forcing airlines to absorb significant costs. In total, airlines paid a premium of $ 2.9 billion for the limited 1.9 million tons of SAF available in 2025, according to the report.
“Europe’s fragmented policies distort markets, slow investment, and undermine efforts to scale SAF production. Europe’s regulators must recognise that its approach is not working and urgently correct course. The recent European Commission STIP announcement is a step forward though it lacks a clear timeline. Actions, not words, are what matter,” said Walsh.
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