- The EU approved a €36 million Danish scheme to promote sustainable aviation fuel (SAF) use.
- The scheme runs until December 31, 2027, targeting 40% SAF on domestic routes.
- Grants cover SAF costs, determined via competitive bidding to ensure efficiency.
- The scheme supports at least 20 weekly sustainable flights on Danish domestic routes.
EU Approval for Danish SAF Scheme
The European Commission has approved a €36 million Danish initiative to reduce greenhouse gas emissions in domestic aviation by promoting sustainable aviation fuel (SAF). This marks the first State aid scheme approved by the Commission to encourage SAF use, aligning with EU and national climate goals.
Scheme Details
The scheme, effective until December 31, 2027, aims to encourage airlines operating in Denmark to use SAF on domestic routes. It targets at least one domestic air route to use 40% SAF, nearing the current technical limit of 50%. This surpasses the ReFuelEU Aviation regulation's minimum requirement of 2% SAF during the scheme period.
Funding and Implementation
Under the scheme, airlines will receive monthly direct grants to cover the additional costs of using SAF compared to conventional kerosene, including airport infrastructure expenses. The aid level will be determined through a competitive bidding process to ensure cost-effectiveness. The scheme supports at least 20 commercial sustainable one-way operations weekly on one or more domestic routes in Denmark.
Commission's Assessment
The Commission evaluated the scheme under EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the EU and the Guidelines on State aid for climate, environmental protection, and energy. The Commission concluded that the scheme is necessary and appropriate for reducing aviation emissions, has an incentive effect, and has a limited impact on competition and trade within the EU. The aid is proportionate, ensuring overall CO2 reductions without displacing emissions to other sectors.
