Framework conditions for more climate-friendly aviation

Sustainable aviation fuels (SAF) are a key lever for decarbonizing aviation. However, the cost of production is currently still significantly higher than that of fossil Kerosene i . Targeted incentives and subsidies are therefore needed to reduce costs and accelerate the ramp-up of the SAF market. In addition to mandates, tax incentives and direct investment programs are available to stimulate supply and demand for SAF.

Mandates, such as those introduced at EU level with the ReFuelEU Aviation Regulation, are a key means of increasing demand for SAF: a 2% Blending i quota will apply from 2025, rising to 70% by 2050.


Other countries are also using legal requirements to oblige fuel suppliers and consumers. While fuel supply obligations apply in South Korea, the United Kingdom, and Canada, countries such as Singapore, Taiwan, and Indonesia have introduced mandate for SAF use. In Brazil, a mandate has been set to reduce CO₂ emissions.

In order to increase the supply of sustainable aviation fuels, many countries are offering targeted financial incentives. The aim is to promote the construction and operation of production facilities, thereby reducing the long-term costs of SAF.

Financial support is currently being provided in the form of capital grants, tax breaks for manufacturers, or coverage of the additional costs incurred by using SAF. In addition, a revenue certainty mechanism is being developed in the United Kingdom, for example.

In addition, the establishment of a transparent market can be supported by recognized framework conditions. This includes the definition of uniform sustainability standards and the recognition of existing systems for SAF production (e.g., ISCC, REDcert-EU system).

In addition, the introduction of a “book and claim” mechanism could be another building block in the development of a market for SAF. The system enables virtual trading in SAF, whereby the environmental benefits of using SAF are recognized regardless of its physical use. This means that SAF can be refueled in one place in the world and credited in another.

With CORSIA i (Carbon Offsetting and Reduction Scheme for International Aviation), the International Civil Aviation Organization (ICAO) has introduced a global Climate Compensation i system i for air traffic. The aim is to make CO₂ growth in international air traffic climate-neutral from the base year 2020 onwards. To this end, airlines must offset emissions that exceed the base emission level for 2019-2020 by purchasing CO₂ certificates from climate protection projects, known as offsets.

CORSIA is being introduced in stages: reporting has been mandatory since 2019, and the voluntary participation phase will run from 2021. From 2027, CORSIA will be mandatory for all ICAO member states – with the exception of developing and island states.

In addition to external offsets, CORSIA also allows sustainable aviation fuels to be credited as a reduction option. The prerequisite is that these are certified as “CORSIA Eligible Fuels,” meaning that certain sustainability and manufacturing requirements under the ICAO Sustainability Certification Scheme (SCS) are met.

With the European Green Deal, the European Union is pursuing the goal of achieving Climate neutrality i by 2050. Two key instruments in this regard are the European Emissions Trading System (EU ETS) and the new ReFuelEU Aviation Regulation.

Since 2012, intra-European flights have been part of the EU ETS. Airlines must surrender one certificate for every tonne of CO₂ emitted. The total number of certificates decreases annually. From 2025, a monitoring and reporting obligation for the Non-CO₂ effects i of aviation will also be introduced under the EU ETS.

The ReFuelEU Aviation Regulation requires aviation fuel suppliers at EU airports to gradually increase the share of sustainable aviation fuels (SAF) from 2% in 2025 to 70% in 2050. Part of this mandate must be met by synthetic E-kerosene i . Only fuels that fulfill the sustainability criteria of the Renewable Energy Directives (RED i II and RED III) – for example, with regard to raw material origin and greenhouse gas reduction – are eligible. Failure to meet the mandates will result in fines, the amount of which will be determined by the member states. In addition, there is a refueling obligation: at least 90% of the kerosene required for EU departures must also be refueled at EU airports in order to prevent deliberate diversion abroad (anti-tankering).

Germany is supplementing European regulations for sustainable aviation fuels with additional national legislative and strategic measures.

A key instrument is the Federal Climate Protection Act, which aims to achieve net greenhouse gas neutrality by 2045. Although the sectoral targets for 2024 have been abolished, European requirements for GHG reduction in transport remain relevant.

The Federal Immission Control Act implements the EU RED i II Directive at national level, which originally provided for a separate PtL i quota from 2026. At the same time, the PtL Roadmap pursues the goal of making 200,000 tonnes of synthetic Kerosene i available annually by 2030.

The National Hydrogen Strategy (NWS) defines air transport as a future consumer – both for the direct use of hydrogen and for the use of synthetic fuels, the production of which requires hydrogen. The aim is to accelerate the expansion of hydrogen production and develop a hydrogen infrastructure at airports.

The aviation tax introduced in 2011 is intended to offset the tax advantages of air transport compared to other modes of transport. The amount of the air traffic tax varies depending on the flight distance. However, its original purpose of promoting CO₂-neutral, electricity-based aviation fuels was not implemented due to budget cuts.