Aircraft operators can apply annually for free allowances covering 30-100% of the price differential between fossil kerosene and eligible sustainable aviation fuels (with a new electricity category from 1 January 2027), plus long-term contract reservations and a contrail-reduction bonus of up to 0.12% of verified emissions.
Aircraft operators using sustainable aviation fuel or electricity are offered support, and this is not law yet.
Why it matters
This is a Commission proposal: it is not law yet, and it can change before it is.
- It is Art. 1(3)(a), replacing Art. 3c(6) of Directive 2003/87/EC, in the EU ETS revision. as of 2026-08-14
- The act gives its timing as: 2024-2040. as of 2026-08-14
- It names one industry by name: Aviation. as of 2026-08-14
- Compliance is checked by self-declaration, annual. as of 2026-08-14
The rule
use of eligible aviation fuel, electricity or hydrogen on flights subject to the Art. 12(3) surrender obligation
Aircraft operators can apply annually for free allowances covering 30-100% of the price differential between fossil kerosene and eligible sustainable aviation fuels (with a new electricity category from 1 January 2027), plus long-term contract reservations and a contrail-reduction bonus of up to 0.12% of verified emissions.
Who is affected
Burden drivers
Source text
The allowances reserved under the first subparagraph of this paragraph shall be allocated by the Member States to cover part of or all of the price differential between the use of fossil kerosene and the use of the relevant eligible aviation fuels, taking into account incentives from the price of carbon and from harmonised minimum levels of taxation on fossil fuels.
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