Brussels — The European Union is grappling with significant challenges in its quest to lead the global sustainable aviation fuel (SAF) market, according to a comprehensive report released this month. The report, titled “European SAF Industrial Policy,” highlights the urgent need for the EU to bolster its industrial strategies to maintain competitiveness and achieve its climate targets.

The SAF market is on the cusp of rapid growth, with production volumes forecast to reach 16 million tonnes by 2030, up from just 1 million tonnes in 2024. This surge reflects a meaningful commercial opportunity, with the value of the global SAF market projected to hit nearly €15 billion by the end of the decade. However, the EU’s current policy framework, while robust, may not be sufficient to secure its leadership position in this burgeoning industry.

One of the report’s key findings is the intense global competition the EU faces, particularly from China and the US. Both countries have implemented aggressive industrial strategies that have accelerated investment in SAF. In contrast, the EU is hampered by higher electricity prices, construction costs, and lengthy permitting processes, which put it at a competitive disadvantage.