The European Commission has published the official 2025 price differences between fossil kerosene and eligible aviation fuels, determining the level of EU ETS support available to aircraft operators using Sustainable Aviation Fuels (SAF).
By Emissence
On 3 June 2026, the European Commission published the official price differences between fossil kerosene and eligible aviation fuels used during 2025. These values are fundamental for determining the number of free EU ETS allowances that aircraft operators may receive under Article 3c(6) of the EU ETS Directive for their use of Sustainable Aviation Fuels (SAF).
The publication provides certainty to aircraft operators by establishing the official fuel prices, price differences, and corresponding levels of financial support available under the EU Emissions Trading System (EU ETS).
As part of the revised EU ETS, the European Union introduced an incentive mechanism to accelerate the adoption of sustainable aviation fuels. Beginning on 1 January 2024, 20 million EU ETS allowances have been reserved to support airlines using eligible aviation fuels on flights covered by the EU ETS.
Rather than covering the full cost of sustainable fuels, the mechanism helps bridge the remaining price gap between fossil kerosene and eligible aviation fuels after accounting for carbon pricing and taxation incentives.
The calculation follows Commission Delegated Regulation (EU) 2025/723. For each eligible fuel, the Commission determines the difference between the fuel price and the price of conventional aviation kerosene while considering the value of EU ETS carbon pricing and any applicable fuel taxation differences.
For fuels uplifted during 2025, the Commission used a fossil kerosene reference price of EUR 640 per tonne and an average EU ETS allowance auction price of EUR 73.43. Since there was no taxation difference between fossil kerosene and eligible aviation fuels during 2025, taxation did not influence the calculation.
| Fuel Category | Fuel Price (€/t) | Price Difference (€/t) | Support Level | ETS Support (€/t) |
|---|---|---|---|---|
| Renewable Fuels of Non-Biological Origin (RFNBO) | 8,272 | 7,400 | 95% | 7,030 |
| Co-processed RFNBO | 8,272 | 7,400 | 95% | 7,030 |
| Advanced Aviation Biofuels | 3,036 | 2,164 | 70% | 1,515 |
| Advanced Co-processed Biofuels | 3,036 | 2,164 | 70% | 1,515 |
| Renewable Hydrogen for Aviation | 8,476 | 7,603 | 70% | 5,322 |
| Aviation Biofuels | 1,925 | 1,053 | 50% | 526 |
| Other Aviation Biofuels | 1,925 | 1,053 | 50% | 526 |
| Non-fossil Low-carbon Hydrogen | 5,269 | 4,397 | 50% | 2,198 |
| Non-fossil Synthetic Low-carbon Aviation Fuels | 5,957 | 5,084 | 50% | 2,542 |
| Co-processed Biofuels | 1,925 | 1,053 | 50% | 526 |
For airlines participating in the EU ETS, these published values provide the official basis for calculating financial support associated with eligible aviation fuels. Understanding these values is essential when preparing allowance allocation applications and evaluating the economic benefits of different SAF procurement strategies.
The varying support levels also demonstrate the European Union’s policy objective of encouraging the deployment of advanced low-carbon fuels, particularly RFNBOs and renewable hydrogen, while continuing to support the wider adoption of conventional sustainable aviation fuels.
The Commission also notes that eligible aviation fuels uplifted at specific airports identified under Article 3c(6) of the EU ETS Directive may qualify for 100% compensation, regardless of fuel category, providing additional support for operators serving these regions.
At Emissence, we help aircraft operators navigate the evolving EU ETS framework, including support for SAF allowance applications, emissions reporting, monitoring plans, verification preparation, ReFuelEU Aviation compliance, UK ETS, CH ETS, and CORSIA obligations.
Need support understanding how these published fuel prices affect your EU ETS allowance allocation? Contact our team at connect@emissence.com.
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