Described as “difficult to decarbonise,” the aviation sector has not escaped European regulations aimed at making it greener. The RefuelEU Aviation regulation entered a new phase on 1 January, requiring the incorporation of 2% sustainable aviation fuel (SAF) for flights departing from the European Union, including foreign airlines. By 2050, this proportion will have risen to 70%. This sustainable fuel is produced from renewable sources (used oil, agricultural waste, biomass or chemical synthesis) and reduces CO2 emissions compared with fossil paraffin.
“It is important to note that it is not the airlines that are directly subject to the obligation to incorporate SAF, but rather the fuel suppliers, who must integrate this sustainable fuel into their paraffin mix at all European airports. This fuel will then be resold to airlines,” explained environment minister (CSV) in a parliamentary reply.
This “novelty” prompted questions from MP (ADR), particularly about the additional cost that could be passed on to customers. According to the minister, who said he had questioned Cargolux and Luxair on the subject, the two Luxembourg companies had “confirmed that SAF will represent an additional cost that can only be partially passed on to customers.” Wilmes added: “The integration of SAF will inevitably lead to an increase in air transport costs, particularly as the price of SAF at Findel is currently five to six times higher than that of conventional Jet A1 paraffin.”
In a recent report entitled “World Air Transport Statistics,” the international agency indicated that fuel and oil generally account for 15% to 30% of the price of an airline ticket, previously . Contacted to find out about its ambitions regarding the use of this type of fuel and any additional costs for passengers, Luxair had not yet responded to Paperjam’s request at the time of publication of this article.
Where do things stand in Luxembourg?
Luxembourg airlines have not waited for the regulations to incorporate this greener fuel into their operations. In 2023, Cargolux was positioned as the first company to deliver SAF fuel to Findel, via Nato pipelines, with Lux-Airport, to operate its first neutral flight between Luxembourg and China, but also with its partners, SAF producer Neste and World Fuel Services for supply management. Cargolux is also involved in . As for Luxair, last summer it received its .
In his question to the minister, MP Engelen also expressed concern about the competition that could increase between the aviation and road transport sectors, due to price. “In personal transport, HVO100 (green diesel) is already widely used as a fuel derived from waste in several European countries, including our neighbours. Does the government consider that this creates a situation of competition with aviation, likely to drive prices even higher?”
But the government's position is clear: since SAF and HVO100 fuel are made from the same raw materials, it believes “that sustainable fuels should be used first and foremost in aviation, where there is no realistic sustainable alternative,” said Minister Wilmes, who is more in favour of electrification for road transport.
The European Commission will assess the overall effects of these regulations and publish a report by January 2027 at the latest, in order to measure “the impact of these developments on the functioning of the internal aviation market, competitiveness and connectivity.” In the meantime, the government is also “closely monitoring the implementation of this regulation.” Sustainable aviation fuel is a key lever for achieving the objective of zero net carbon emissions by 2050.
This article was originally published in .