EU Publishes Detailed Rules for Allocating Allowances to Sustainable Aviation Fuels

EU Publishes Detailed Rules for Allocating Allowances to Sustainable Aviation Fuels

The European Union has introduced Commission Delegated Regulation (EU) 2025/723, which will come into force on 19 April 2025, to support the decarbonisation of the aviation sector. This regulation supplements Directive 2003/87/EC (EU ETS Directive), as amended by Directive (EU) 2023/958, and aligns with Regulation (EU) 2023/2405 (ReFuelEU Aviation initiative). It establishes detailed rules for calculating the average cost difference between fossil kerosene and eligible aviation fuels, aiming to incentivise the use of sustainable alternatives.

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