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2025.02.04
The EU SAF Mandate: A Complete Guide for Shippers
Discover how GEODIS helps shippers navigate the EU SAF mandate, ensures compliance, and optimizes sustainability while minimizing supply chain disruptions.
The European Union (EU) is taking transformative steps to decarbonize the aviation industry with its Sustainable Aviation Fuel (SAF) mandate, officially known as ReFuelEU Aviation. This regulation introduces a phased approach to incorporating SAF into aviation fuel in EU airports, starting with a minimum 2% in 2025 with a final goal of 70% blend by 2050.
In this article, we provide an overview of SAF as a low-carbon alternative to conventional jet fuel, key provisions of the mandate, and how it will impact shippers. We will also explore the potential market and cost impacts, emission reporting, and how GEODIS’ SAF Book-and-Claim model can help shippers achieve further emission reductions.
What is SAF?
The EU defines SAF as advanced biofuels derived from sustainable feedstock, recycled carbon, or synthetic fuels. Unlike conventional jet fuel, SAF is not sourced from fossil fuels. Instead, it is produced from renewable and waste-based sources, such as used cooking oil, agricultural waste, and forestry residues. It can also be produced synthetically by capturing carbon directly from the air.
SAF is considered a "drop-in" fuel, meaning it can be used in existing aircraft without any modifications. It is an essential factor for shippers, as it helps to minimize disruptions to their current operations.
Why is SAF a Low-Carbon Alternative?
SAF is considered a low-carbon alternative because it significantly reduces lifecycle carbon emissions. While fossil fuels add to the overall level of CO₂ by emitting carbon that had been previously locked away, SAF recycles the CO₂, which has been absorbed by the biomass used in the feedstock during the course of its life.
Depending on the feedstock and production method, SAF can reduce lifecycle greenhouse gas emissions by a minimum of 70% compared to conventional jet fuel. A 2% SAF blend with a 70% reduction rate will cut emissions by approximately 1.4%.
What is the EU SAF Mandate?
Officially known as ReFuelEU Aviation, the mandate aims to increase the use of SAF in aviation, decrease CO₂ emissions, and achieve the EU’s climate targets.
The regulation requires aviation fuel suppliers to ensure that all fuel supplied to aircraft operators at EU airports contains a minimum share of SAF, including a sub-mandate for synthetic fuels. It applies to all flights departing from EU airports, regardless of the airline's origin or destination.
Key Provisions and Timeline
The regulation introduces a comprehensive framework of requirements and penalties and an ambitious timeline that will reshape the fuel composition in the air transportation sector over the next 25 years.
Below are the critical components businesses need to understand:
| Provision | Description |
| Phased Implementation | The mandate will be implemented in phases, starting with a 2% SAF blend in 2025 and gradually increasing to 70% by 2050, with 28% of this being synthetic aviation fuels. |
| Penalties for Non-Compliance | Fuel suppliers who fail to meet their SAF blending obligations will face penalties, which will be at least twice the price difference between fossil kerosene and SAF. |
| Focus on Sustainability | The mandate emphasizes using sustainable feedstocks for SAF production, aligning with broader EU environmental goals. |
| Electro-fuels Blending Mandate | The EU has set a sub-mandate for electro-fuels, requiring 1.2% of total aviation fuel to come from this source by 2030. It is a significant catalyst for power-to-liquid SAF production. |
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How Will it Impact the Market?
The mandate is expected to significantly impact the aviation market, influencing fuel prices, supply chains, and operational practices. It will also significantly boost the demand for SAF, creating opportunities to scale production capacity and incentivizing investment in the new production facilities.
Cost Implications
The regulation will increase costs for airlines as SAF is more expensive than conventional jet fuel, these costs will be passed on to logistics service provider’s and shippers, impacting air freight pricing.
Here's a breakdown of the potential cost implications:
- Higher Prices: The price gap between SAF and conventional jet fuel can vary depending on the SAF production pathway and feedstock. This price difference will inevitably put upward pressure on air freight costs.
- Market Volatility: SAF prices can fluctuate significantly due to factors like feedstock availability, production costs, and policy changes.
- Airline Surcharge: Airlines are adjusting to EU Regulation 2023/2405, which mandates aviation fuel suppliers to include a 2% SAF blend in all flights departing from the EU starting January 1, 2025, under the regulatory framework.
What are the Penalties for Non-Compliance?
Penalties have been established to ensure compliance with the SAF blending requirements. Aviation fuel suppliers and aircraft operators who fail to meet their obligations will face fines that are designed to be both effective and dissuasive.
- Fuel Suppliers: Failure to meet the mandate of SAF blending requirements will result in financial penalties equivalent to at least twice the price difference between SAF and conventional jet fuel. Additionally, suppliers must compensate for any shortfall by supplying the equivalent amount of SAF in the next reporting period.
- Aircraft Operators: Operators who do not meet refuelling obligations or fail to provide accurate emission data will be subject to fines based on the level of non-compliance and any repeated violations.
Revenue generated from these penalties will be allocated to research and development projects focused on SAF production and innovation, supporting the transition to a sustainable air transport sector.
These measures will ensure accountability and incentivize the aviation industry to effectively align with EU climate goals.
GEODIS and the SAF Book-and-Claim Model
GEODIS’s SAF book-and-claim service allows shippers to reduce their carbon footprint beyond the EU SAF mandate. This model enables shippers to purchase SAF and the associated carbon reduction even when the SAF is not physically used on the specific flight carrying their cargo.
While the mandated SAF blend intends to achieve system wide emissions reduction, voluntary book-and-claim models offers shippers the ability to go beyond regulations. By participating, shippers can achieve significant reduction, as illustrated in the diagram. This approach ensures that shippers can effectively participate in voluntary measures to reduce emissions.
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The diagram illustrates a potential stepwise reduction of CO2e emissions with SAF adoption. Starting at 1,000 kg CO2e with no SAF, followed by the mandated 2% SAF blend under ReFuelEU that can potentially reduce emissions by approximately 1.4% to 986 kg. Using voluntary SAF via book-and-claim we can reach even further.
Want to know more?
Connect with a GEODIS expert to learn more and discuss your decarbonization challenges.
