Sustainable aviation fuels (SAF) includes biofuels (advanced and others), synthetic aviation fuels (RFNBO: renewable fuels of non-biological origin), synthetic low carbon fuels and recycled carbon aviation fuels (RCF). Mixed aviation fuels contain SAF blended with conventional aviation fuel. The biomass, RFNBO, RCF or synthetic low-carbon content of a mixed aviation fuel may qualify for a zero-emission factor under the EU ETS. In the Monitoring and Reporting Regulation (MRR) SAF are referred to as ‘alternative aviation fuels’.
Additionally, under the Fit For 55 changes to the EU ETS directive, a new provision has been introduced allowing the application of free allowances for the use of SAF between 2024 and 2030, which is called Fuels Eligible for ETS (FEETS) support. This support mechanism is designed to incentivise the use of SAF and help offset the cost difference between kerosene and SAF. These fuels that are eligible for allocation are referred to as ‘eligible aviation fuels’ in the MRR.
Aircraft operators may claim a zero-emission factor for the biomass, RFNBO, RCF or synthetic low-carbon fraction in a mixed aviation fuel, provided that the required evidence is demonstrated. This approach reduces the reported emissions and, consequently, lowers the surrender obligation. Additionally, aircraft operator can apply for FEETS support, and receive allocation of allowances when compliance is met with the relevant requirements.
To qualify for a zero-rating, aircraft operators must demonstrate that the sustainable component of the mixed aviation fuel meets the sustainability criteria outlined in the Renewable Energy Directive (RED). This compliance is evidenced through a Proof of Sustainability (PoS). Additionally, aircraft operators must ensure adherence to the provisions in the MRR related to the zero-rating of biomass, RFNBO, RCF, or synthetic low-carbon fuels.
Reporting SAF under the EU ETS may only be done in accordance with an emissions monitoring plan approved by the NEa. Additionally, documentation is required to support this claim and demonstrate compliance with the RED criteria, as defined in the MRR and the national regulation Regeling handel in emissierechten.
A Proof of Sustainability (PoS) is a declaration issued by a certification body within the framework of a voluntary scheme or national certification scheme, which is approved by the European Commission under the sustainability framework of the RED. It allows for the assessment of whether a specific quantity of fuels meets the sustainability and greenhouse gas emissions reduction criteria outlined in RED. The PoS travels the entire production and commercial chain until a registering company redeems the sustainability.
In some countries, including the Netherlands, fuel suppliers use the PoS to receive a national subsidy or fulfil a national mandate in accordance with the national RED implementation. A PoS can only be issued and used once, so if the fuel supplier uses it for their own purposes, it becomes unavailable to the aircraft operator. In such cases, the aircraft operator is unable to prove compliance with sustainability criteria for sustainable aviation fuels and, therefore, cannot claim these fuels under the EU ETS.
The European Commission is developing a union database which will facilitate the use of a PoS by both the fuel supplier and the end-user of the fuel, such as an aircraft operator. The Union Database (UDB) will be linked to national registers and ensures a chain of custody of sustainable fuels between fuel supply and fuel purchase. The UDB ensures a trustworthy system for supporting the multiple use of a PoS, while ensuring no double claims. The UDB is still in development for this purpose.
For the 2024 annual emissions reporting, the Ministry of Infrastructure and Water Management (IenW) has instructed the NEa to implement a temporary measure that allows double claims of sustainable fuels by both fuel suppliers under the national mandate and aircraft operators under the EU ETS until the UDB is fully functional for this purpose. This temporary solution is intended only for cases where the aircraft operator is unable to obtain a PoS from their fuel supplier. The temporary measure is valid from 1 January 2024 to 31 December 2024. Once the UDB becomes operational, this national temporary solution will be withdrawn.
The NEa maintains a national registry where fuel suppliers report sustainable fuel supplied in the Netherlands under the national mandate. In this registry, fuel suppliers submit the PoS along with details such as the delivery date and the recipient of the fuel. This allows the NEa to link the PoS from the fuel delivered to the fuel purchased, mirroring the functionality that will be provided by the UDB once it is operational. The aircraft operators are required to supply additional evidence such as purchase records. For fuel supplied abroad alternative evidence must be submitted. The temporary solution is legally secured in Article 26 of the amended Regeling handel in emissierechten. You can find the publication of the amended scheme here.
Small emitters reporting annual emissions using the small emitters tool (SET) from Eurocontrol are currently not able to report biofuels.
The rules for reporting fuels eligible under CORSIA will be outlined in an upcoming delegated regulation from the European Commission, expected in the fourth quarter of 2024. Further details will be published at a later date.
For more information detailing the temporary measure in the Netherlands for the zero rating of biomass, please refer to the checklist and roadmap available here:
Here you can find the roadmap. This roadmap currently only covers the zero-rating of biofuels, and the same actions are applicable for eligible fuels claims.
