EU ETS review puts e-SAF funding and long-term support in focus

Fastmarkets

Yesterday

The allocation, adopted by the Commission on September 8, covered more than 530,000 tonnes of SAF and provided an estimated 1.7 million tonnes of CO2 abatement. Including the benefit from zero-rating ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers HK | Online Trading in stocks, bonds & ETFS","description":"Discover Tiger Brokers HK, an online trading platform for stocks&ETFs, options&futures, bonds and crypto. Open an account to enjoy low commission trading today!","keywords":"tiger trading,tiger security,tiger broker hk,tigers co ltd,tiger trade hk,tiger brokers hk,stock broker,securities broker,online brokerage,hong kong broker,hk broker,online stock trading,online trading platform,stock trading platforms,trading application,stock trading,stock trading hong kong,buying stocks in hong kong,tiger brokers","social":{"ogDescription":"Discover Tiger Brokers HK, an online trading platform for stocks&ETFs, options&futures, bonds and crypto. Open an account to enjoy low commission trading today!","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://www.tigrgood.cn/news/2673902099"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"HKG","license":"TBHK","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2673902099\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2673902099?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-10-07 12:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2673902099","market":"fut","top_or_hot":-1,"title":"EU ETS review puts e-SAF funding and long-term support in focus","media":"Fastmarkets","content":"<div>\n<p>The allocation, adopted by the Commission on September 8, covered more than 530,000 tonnes of SAF and provided an estimated 1.7 million tonnes of CO2 abatement. Including the benefit from zero-rating ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/eu-ets-review-puts-e-saf-funding-and-long-term-support-in-focus/\">Source Link</a>\n\n</div>\n","source":"fastmarkets_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>EU ETS review puts e-SAF funding and long-term support in focus</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEU ETS review puts e-SAF funding and long-term support in focus\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-10-07 12:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fastmarkets.com/insights/eu-ets-review-puts-e-saf-funding-and-long-term-support-in-focus/><strong>Fastmarkets</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The allocation, adopted by the Commission on September 8, covered more than 530,000 tonnes of SAF and provided an estimated 1.7 million tonnes of CO2 abatement. Including the benefit from zero-rating ...</p>\n\n<a href=\"https://www.fastmarkets.com/insights/eu-ets-review-puts-e-saf-funding-and-long-term-support-in-focus/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4581","symbol_name":"高盛持仓","start_time":0,"source_url":"https://www.fastmarkets.com/insights/eu-ets-review-puts-e-saf-funding-and-long-term-support-in-focus/","article_id":"2673902099","we_media_id":null,"thumbnails":[],"rights":{"source":"fastmarkets_highlight","url":"https://www.fastmarkets.com/insights/eu-ets-review-puts-e-saf-funding-and-long-term-support-in-focus/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2673902099","pubTimestamp":1791345600,"columns":[],"sourceInfo":{"source_id":"fastmarkets_highlight","name":"Fastmarkets"},"weMediaInfo":null,"summary":"The European Commission allocated about 5.2 million EU Emissions Trading System (ETS) allowances worth €430 million ($483 million) to 130 aircraft operators for sustainable aviation fuel (SAF) used in 2025, highlighting the growing scale of EU support for aviation decarbonization as the bloc considers expanding the mechanism.","collect":0,"end_time":0,"defaultTopTitle":"fastmarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4581":"高盛持仓","ETS":"Elite Express Holding Inc.","BK4232":"货物陆运","UCO":"二倍做多彭博原油ETF","HEFA":"iShares Currency Hedged MSCI EAFE ETF"},"translate_title":"欧盟排放交易体系审查重点关注 e-SAF 资金和长期支持","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HEFA":1,"ETS":0.9,"UCO":1},"content_text":"The allocation, adopted by the Commission on September 8, covered more than 530,000 tonnes of SAF and provided an estimated 1.7 million tonnes of CO2 abatement. Including the benefit from zero-rating SAF under the ETS, the total incentive for SAF use in 2025 was around €565 million, the Commission said.\nThe €430 million allocation was more than four times the €100 million provided the previous year.\nThe existing mechanism uses free ETS allowances to cover part of the price difference between fossil kerosene and eligible SAF used by commercial aircraft operators on flights covered by the EU ETS.\nSince 2024, up to 20 million allowances have been reserved for this purpose, worth around €1.5 billion, according to the Commission.\nWith the ETS now under review, the key question for the emerging synthetic SAF (e-SAF) sector is how much of any expanded support could ultimately be directed toward renewable fuels of non-biological origin (RFNBOs), and whether that support would be predictable enough to underpin investment and long-term fuel supply agreements.\nCommission proposes wider aviation support\nIn July, the Commission proposed extending ETS support for eligible aviation fuels and adding a further maximum 110 million allowances through 2040.\nThe additional allowances would support the wider decarbonization of aviation, including SAF, electrification and measures to reduce non-CO2 climate impacts. The Commission estimates the additional support could be worth around €15 billion.\nThe allowances would not be earmarked exclusively for e-SAF, but potentially part of the additional pool could support RFNBO-based fuels depending on how the mechanism is ultimately structured and allocated.\nThis makes the allocation of the expanded pool a key issue for e-SAF developers. An increase in the overall number of allowances does not necessarily translate into a similar increase in support for synthetic fuels.\nLiese proposes dedicated e-SAF allocation\nPeter Liese, the European Parliament’s rapporteur for the ETS review, has proposed a dedicated allocation for RFNBOs.\nHis draft report proposes that at least 10 million allowances be used to cover the price difference between fossil kerosene and RFNBOs.\nIt also includes different levels of price-gap support for eligible aviation fuels. RFNBOs and renewable hydrogen used in aviation would receive allowances covering 60% of the remaining price differential with fossil kerosene, while advanced biofuels would receive 50%. Other eligible non-fossil aviation fuels would receive 30% until the end of 2029.\nThese price-gap provisions, as well as the provisions on long-term fuel supply contracts, are also included in the Commission’s initial draft.\nUnder the proposed mechanism, where an aircraft operator has a binding fuel supply contract with a supplier lasting at least three years, allowances covering the price difference could be reserved for the operator for the duration of the contract, up to five years. Allowances reserved in this way would be capped at 10 million.\nThe provision is important for the e-SAF market because long-term offtake agreements are a key part of project financing. However, the support would be directed to aircraft operators rather than fuel producers.\nFor developers and investors, the value of the mechanism will therefore depend not only on the amount of ETS support available, but also on whether airlines are willing and able to commit to long-term purchases.\nAllocation will determine impact on e-SAF\nNon-profit environmental organization Climate Catalyst told Fastmarkets that the allocation rules and the number of allowances ultimately directed to e-SAF will be critical to the outcome of the ETS review.\nClimate Catalyst also highlighted the treatment of used cooking oil (UCO)- and hydrotreated esters and fatty acids (HEFA)-based SAF. In its view, without dedicated e-SAF allocation and a phase-out of support for UCO/HEFA, relatively few allowances could ultimately reach e-SAF.\nThe issue was also discussed at a roundtable organized by Liese, where the e-SAF Coalition argued that the proposed 10 million allowances would be insufficient.\nThe coalition estimated that around 40 million allowances would be required to cover 25% of the ReFuelEU Aviation e-SAF mandate in 2035. It also called for stronger support for the cost difference between e-SAF and other aviation fuels, as well as support linked to long-term offtake agreements.\nGerman company KGAL Investment Management told Fastmarkets that a higher allocation for RFNBOs would provide greater support for the sector, although the market could potentially accept a gradual reduction in support over time.\n“The higher ETS allowances for RFNBOs, the better,” said Thomas Engelmann, managing director and head of energy transition at KGAL. “However, I guess the market could accept a ladder downwards, e.g. 25% for 2035 going down then to 20%, 15% year over year,” Engelmann added.\nThe comment reflects the importance of both the initial level of support and the longer-term trajectory for e-SAF projects, which face high capital requirements and long development timelines.\nOfftake remains key to project financing\nLong-term visibility over ETS support could help airlines manage the additional cost of low-carbon aviation fuels, but KGAL said the underlying offtake agreement remains more important for developers and investors.\nThe Liese proposal would allow operators to reserve support against binding fuel supply contracts of at least three years, for up to five years. This could provide greater visibility over the support available for contracted volumes.\nFor airlines, Engelmann said such visibility was “very important” but added that “the offtake contract is much more important” for project bankability.\n“ETS is for the downstream market [airlines] important that ticket prices will be in the range of acceptance. For developers and investors however, the offtaker quality is most important,” Engelmann said.\nThis puts the ETS mechanism in a broader project-financing context. Support can help narrow the cost gap between e-SAF and conventional jet fuel, but developers still need credible buyers willing to enter into long-term agreements before projects can secure financing and reach final investment decisions.\nETS revenues could provide broader support\nLiese’s draft report also proposes increasing the minimum share of ETS auction revenues that member states use for decarbonization of ETS sectors from 50% to 75%.\nThe proposed list of eligible uses includes measures to decarbonize aviation, support electrification, reduce aviation’s wider climate impacts and increase production of low- and zero-carbon fuels.\nThe proposal would therefore create a broader potential funding channel for aviation decarbonization beyond the dedicated RFNBO allocation proposed elsewhere in the draft.\nUnlike the wider 110 million allowance pool proposed by the Commission, however, Liese’s proposed earmarking would create a dedicated source of ETS support for e-SAF.\nDraft report is not final Parliament position\nLiese’s document remains a draft report and is not the European Parliament’s final position. The Parliament’s Legislative Observatory lists the ETS review as awaiting a committee decision, with Liese appointed as Environment, Public Health and Food Safety (ENVI) committee rapporteur on September 4.\nThe committee draft report is dated September 15, while an indicative first-reading plenary date has been set for December 14.\nFurther amendments and negotiations between political groups will determine the Parliament’s eventual position before the legislation progresses through the wider EU legislative process.\nFor e-SAF, the outcome will therefore depend on more than the headline increase in the size of the aviation support pool. The key questions will be how much support is specifically protected for RFNBOs, how that support changes over time and whether the mechanism gives airlines enough visibility to sign long-term offtake agreements.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}