EU quota for sustainable jet fuel cannot be met, Fraport CEO says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 19 2024
0mins
Should l Buy ?
Source: reuters
- Sustainable Aviation Fuel (SAF) Production: Producers in the EU are unable to increase output quickly enough to meet quotas, according to Fraport CEO.
- Environmental Impact: SAF, made from bio-based materials, can reduce carbon emissions by up to 80% compared to traditional fuel, making it essential for sustainability in the aviation sector.
- EU Regulations: The EU has set rules requiring flights from EU airports to carry increasing amounts of SAF, with quotas rising to 70% by 2050 and starting at 2% in 2025.
- Challenges in Production: Slow uptake is due to factors like high costs (3-5 times more than traditional jet fuel), lack of production certainty, and potential oversupply concerns for SAF producers.
- Industry Response: The head of IATA believes there is sufficient demand for SAF, indicating that all produced SAF has been and will be used.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
