The European Commission has allocated free EU Emissions Trading System (ETS) allowances worth about $118 million to support airlines in purchasing sustainable aviation fuel (SAF).

The decision, announced on September 17, follows calculations by member states and marks the first implementation year of the new SAF support mechanism under the ETS. A total of 1.3 million allowances were distributed among 53 operators for 2024, helping to bridge the price gap between SAF and fossil kerosene. In addition, operators using SAF benefit from not having to surrender allowances, worth an extra $29.5 million this year.

Together, the ETS incentive for SAF in 2024 totals roughly $147 million. The Commission emphasized that publishing support prices ensures transparency and reflects its commitment to scaling up sustainable fuels, strengthening Europe’s aviation decarbonization efforts and broader climate goals.