EcoCeres, a renewable fuels producer, is urging European policymakers to keep the sustainable aviation fuel market open to international competition, warning that trade restrictions could slow aviation’s transition away from fossil fuels.
The Hong Kong-based company released a position paper cautioning that potential tariffs or anti-dumping duties on imported sustainable aviation fuel, known as SAF, could make the fuel more expensive and harder to access. This comes as the EU implements binding mandates requiring airlines to use increasing amounts of SAF under its ReFuelEU Aviation Regulation.
SAF currently represents less than 1% of global jet fuel consumption and costs more than conventional fuel. EcoCeres argues that trade barriers would widen this price gap further, potentially discouraging airlines from switching to cleaner alternatives despite regulatory requirements.
“If we are serious about meeting climate targets, we cannot afford to close the door on competitive SAF supply,” said Matti Lievonen, CEO of EcoCeres. He warned that restrictions would primarily benefit a small number of EU-based producers while potentially leading to supply bottlenecks.
The company also raised concerns about effects beyond aviation. Higher fuel costs could increase airfares and freight charges, affecting travelers and businesses that depend on air transport.
EcoCeres recommends that EU policymakers focus on incentives rather than barriers. The company suggests using emissions trading support, innovation funding, and tax credits to close the price gap between SAF and fossil jet fuel, while maintaining open market access to diverse global suppliers.
The position paper emphasizes that mandates have begun unlocking new SAF supply globally, with Europe serving as a key market. EcoCeres argues that pairing clear mandates with open competition would better support investment and innovation across multiple SAF production technologies.
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