Croatia Airlines has been awarded €594,342.42 in support for the eligible use of sustainable aviation fuel (SAF) in 2026 under the European Union Emissions Trading System (EU ETS), highlighting the role of EU climate-policy mechanisms in supporting aviation’s transition towards lower-carbon fuels.
The Croatian flag carrier disclosed the funding amount in its sustainability reporting, which covers the use of alternative fuels in aviation. The support comes as European regulations progressively increase the required share of SAF in aviation fuel supplied at covered airports, creating a growing role for renewable fuels in the sector’s decarbonisation strategy.
Sustainable aviation fuel can be produced from feedstocks such as used cooking oil, waste biomass and residues, or through pathways using renewable energy and captured carbon. Its lifecycle emissions performance varies according to the feedstock, production process and energy sources used.
EU ETS support backs eligible SAF use
Croatia Airlines has reported €594,342.42 in support for eligible SAF use during 2026 under the EU ETS. The disclosed figure relates to support associated with sustainable aviation fuel use; the supplied source does not specify the volume of SAF covered, the number of flights involved or the precise calculation method used to determine the amount.
The EU ETS is a carbon-pricing framework that requires covered operators to account for greenhouse gas emissions through emissions allowances. Within this system, provisions supporting eligible sustainable aviation fuels can help address the cost difference between qualifying fuels and conventional fossil-based aviation fuel.
For airlines, the economics of SAF remain a key consideration because production costs and market prices can be higher than those of conventional jet fuel. Support mechanisms can help improve the financial case for adopting eligible fuels, although the scale of the benefit depends on the applicable rules and the airline’s qualifying fuel use.
SAF can be integrated into existing aviation operations
Sustainable aviation fuel can be produced from eligible waste oils, biomass residues and other approved feedstocks, as well as through synthetic pathways that combine renewable hydrogen with carbon sources. The emissions benefits depend on the production route and the fuel’s lifecycle carbon intensity.
According to the information provided by Croatia Airlines in the source report, SAF can reduce lifecycle carbon emissions by around 80% compared with conventional aviation fuel. This is a lifecycle estimate, not a claim that every flight using SAF will produce 80% fewer emissions. The actual reduction depends on the fuel pathway, feedstock and production process.
Approved SAF blends can be used in existing aircraft and aviation fuel infrastructure, allowing airlines to adopt these fuels without replacing their fleets. The European Union Aviation Safety Agency (EASA) identifies several eligible SAF pathways and requires fuels counted towards the EU mandate to meet applicable sustainability and greenhouse gas emissions-saving criteria.
ReFuelEU Aviation sets rising fuel-supply requirements
The EU’s ReFuelEU Aviation Regulation requires aviation fuel suppliers to increase the share of SAF supplied at covered EU airports over time. The minimum share began at 2% in 2025, rising to 6% in 2030 and 70% by 2050.
The mandate is directed at fuel suppliers, which must ensure that the required SAF shares are supplied to the aviation market. Airlines also have obligations under the regulation, including requirements designed to prevent excessive fuel tankering. The distinction is important: the SAF blending mandate is not a requirement for every airline to independently purchase a fixed percentage of SAF for each flight.
Separately, the EU ETS provides financial support for eligible alternative aviation fuels by helping bridge the price difference with conventional fossil-based kerosene. The European Commission has reserved emissions allowances for this purpose, with support levels depending on fuel type and the location where the fuel is uplifted.
Croatia Airlines’ disclosed award illustrates how these mechanisms can provide financial assistance for eligible fuel use as the aviation industry adjusts to increasingly stringent decarbonisation requirements.
Bioenergy Business Analysis
Croatia Airlines’ €594,342.42 award highlights the importance of policy-based financial incentives in expanding the market for sustainable aviation fuel. Although SAF can be used in approved blends with conventional jet fuel, its uptake remains closely linked to production costs, fuel availability and the design of regulatory support mechanisms.
The EU ETS support framework is particularly relevant because it addresses one of the industry’s central barriers: the price difference between qualifying alternative fuels and fossil kerosene. By helping cover part of that difference, the mechanism can improve the economic case for airlines using eligible fuels on flights covered by the emissions-trading system.
For now, Croatia Airlines’ award provides a specific example of how EU support mechanisms are being applied at airline level. Its wider significance will depend on the volume of eligible fuel used, the associated cost savings and the extent to which such incentives encourage sustained SAF uptake.
Related: BCD Travel introduces €1 SAF programme to lower corporate investment barriers
