Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on ensuring a level playing field for sustainable air transport
Date: 2021-07-14
Institutions: Directorate-General for Mobility and Transport, European Commission
Subjects: air quality, air transport, aviation fuel, biofuel, greenhouse gas, reduction of gas emissions, renewable energy, sustainable mobility

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   EUROPEAN COMMISSION  Brussels, 14.7.2021  COM(2021) 561 final/2 2021/0205 (COD)  CORRIGENDUM  This document corrects document COM(2021) 561 final of 14.7.2021  Addition of the missing Legislative Financial Statement  The text shall read as follows: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on ensuring a level playing field for sustainable air transport (Text with EEA relevance) {SEC(2021) 561 final} - {SWD(2021) 633 final} - {SWD(2021) 634 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

A  well-functioning  and  competitive  aviation  internal  market  is  essential  for  the  mobility  of 
European  citizens  and  for  the  European  economy  as  a  whole.  In  2018,  the  aviation  and 
aeronautical  industries  employed  an  estimated  0.4  million  people  directly  in  the  EU1  and 
contributed to the EU’s GDP by an estimated 2.1%2 in 2017. Aviation is a strong driver for 
social and regional cohesion that boosts tourism, stimulates business and connects people. In 
20183, over 1.2 billion passengers flew to and from more than 500 airports in Europe. The EU 
aviation  sector  contributes  to  European  integration  and  reinforces  the  EU’s  position  as  a 
geopolitical leader. 

 Air  connectivity  is  an  essential  driver  of  mobility  for  EU  citizens,  of  development  for  EU 
regions and of growth for the economy as a whole. High levels of air connectivity within the 
EU,  as  well  as  to  and  from  the  EU,  are  best  ensured  when  the  EU  air  transport  market 
functions  as  a  level  playing  field,  where  all  market  actors  can  operate  based  on  equal 
opportunities. When occurring, market distortions risk putting aircraft operators or airports at 
disadvantage towards competitors. In turn, this can result in a loss of competitiveness of the 
industry, and a loss of air connectivity for citizens and businesses. 

In particular, it is essential to ensure a level playing field across the EU air transport market, 
when it comes to the use of aviation fuel. Indeed, aviation fuel accounts for a substantial share 
of  aircraft  operators’  costs,  i.e.  up  to  25%  of  operational  costs.  Variations  in  the  price  of 
aviation  fuel  can  have  important  impacts  on  aircraft  operators’  economic  performance. 
Furthermore,  differences  in  the  price  of  aviation  fuel  between  geographic  locations,  as  is 
currently the case between EU airports or between EU and non-EU airports, can lead aircraft 
operators to adapt their refuelling strategies for economic reasons. 

Practices such as ‘fuel tankering’ occur when aircraft operators uplift more aviation fuel than 
necessary at a given airport, with the aim to avoid refuelling partially or fully at a destination 
airport  where aviation  fuel  is  more expensive. Fuel  tankering leads to  higher fuel  burn than 
necessary, hence higher emissions, and undermines fair competition in the Union air transport 
market. Besides being contrary to the Union’s efforts to decarbonise aviation, fuel tankering is 
also  detrimental  to  healthy  competition  between  aviation  market  players.  With  the 
introduction and the ramp-up of sustainable aviation fuels at Union airports, practices of fuel 
tankering  may  be  exacerbated  as  a  result  of  increased  aviation  fuel  costs.  In  respect  to  fuel 
tankering, the present Regulation therefore aims restore and preserve a level playing field in 
the air transport sector, while at the same time avoiding any adverse environmental effect.  

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Eurostat (lfsa_egan22d). 
Source: SWD(2017) 207 final. 
Source:  Eurostat;  Indirect  job  generated  from  air  transport  can  be  as  high  as  three  times  the  direct  ones  (European 
Commission, 2015). 

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The  Commission  adopted  in  December  2020  the  Sustainable  and  Smart  Mobility  Strategy4. 
This  strategy  sets  out  the  objective  to  boost  the  uptake  of  sustainable  aviation  fuels. 
Sustainable aviation fuels have the potential to deliver a major contribution to achieving the 
increased  EU  climate  target  for  2030  and  the  EU’s  climate  neutrality  objective.  For  the 
purpose of this initiative, sustainable aviation fuels means liquid drop-in fuels substitutable to 
conventional aviation fuel. In order to decrease significantly its emissions, the aviation sector 
needs to reduce its current exclusive reliance on fossil jet fuel and accelerate its transition to 
innovative  and  sustainable  types  of  fuels  and  technologies.  While  alternative  propulsion 
technologies  for  aircraft  such  as  powered  by  electricity  or  hydrogen  are  making  promising 
advances,  their  introduction  to  commercial  use  will  take  a  considerable  effort  and  time  to 
prepare. Because air transport needs to address its carbon footprint on all flight ranges already 
by  2030,  the  role  of  sustainable  aviation  liquid  fuels  will  be  essential.  For  this  reason, 
measures are also needed to increase the supply and use of sustainable aviation fuels at Union 
airports.  

While several sustainable aviation fuels pathways are certified to be used in aviation, their use 
is  currently  negligible,  for  lack  of  production  at  affordable  cost.  A  blending  mandate 
specifically targeting the aviation sector is necessary, in order to spur the market uptake of the 
most  innovative  and  sustainable  fuel  technologies.  This  would  allow  to  scale  up  production 
capacity  and  lower  production  costs  over  time.  Given  that  sustainable  aviation  fuels  should 
account for at least 5% of aviation fuels by 2030 and 63% by 2050, it is essential that the fuel 
technologies  supported  under  this  Regulation  have  the  highest  potential  in  terms  of 
innovation, decarbonisation and availability. This is a sine qua non condition in order to meet 
future  aviation  demand  and  contribute  to  achieving  the  decarbonisation  objectives.  This 
should  cover  notably  advanced  biofuels  and  synthetic  aviation  fuels.  In  particular,  synthetic 
aviation  fuels  have  the  potential  to  achieve  emission  savings  as  high  as  85%  or  more 
compared  to  fossil  aviation  fuel.  When  produced  from  renewable  electricity  and  carbon 
captured directly from the air, the potential emission savings compared to fossil aviation fuel 
can  reach  100%.  As  such,  synthetic  aviation  fuels  have  the  highest  potential  for 
decarbonisation of all fuels considered under this initiative. Their production process is also 
particularly resource efficient, notably as regards the use of water, compared to the production 
of other sustainable aviation fuels pathways. While synthetic aviation  fuels could contribute 
significantly  to  decarbonise  the  sector,  its  emergence  on  the  market  in  sizeable  volumes  by 
2030 is  unlikely in  the  absence of dedicated policy support.  Indeed, the  production costs of 
synthetic  aviation  fuels  are  currently  estimated  at  3  to  6  times  the  current  market  price  of 
fossil  aviation  fuel.  As  synthetic  aviation  fuels  are  expected  to  play  a  role  in  the 
decarbonisation  of  the  sector  already  by  2030,  and  should  contribute  to  at  least  28%  of  the 
aviation  fuel  mix  by  2050,  it  is  therefore  necessary  for  this  Regulation  to  set  out  dedicated 
sub-obligation,  pushing  their  introduction  on  the  market.  This  is  expected  to  partly  de-risk 
investments in synthetic aviation fuels production capacity and allow the production capacity 
to scale-up. 

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Source: https://ec.europa.eu/transport/themes/mobilitystrategy_en 

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For sustainability reasons, first generation biofuels such as crop-based biofuels ￼Feed￼, and 
food and crop-based biofuels, which have limited scalability potential and raise sustainability 
concerns,  should  not  be  supported.  Indirect  land-use  change  occurs  when  the  cultivation  of 
crops for biofuels displaces traditional production of crops for food and feed purposes. Such 
additional demand increases the pressure on land and can lead to the extension of agricultural 
land  into  areas  with  high-carbon  stock,  such  as  forests,  wetlands  and  peatland,  causing 
additional greenhouse gas emissions. Research has shown that the scale of the effect depends 
on a variety of factors, including the type of feedstock used for fuel production, the level of 
additional demand for feedstock triggered by the use of biofuels and the extent to which land 
with high-carbon stock is protected worldwide. The highest risks of indirect land-use change 
have been identified for biofuels produced from feedstock for which a significant expansion 
of  the  production  area  into  land  with  high-carbon  stock  is  observed. In  addition  to  the 
greenhouse gas emissions linked to indirect land-use change – which is capable of negating 
some or all greenhouse gas emissions savings of individual biofuels, indirect land-use change 
poses  risks  also  to  biodiversity.  This  risk  is  particularly  serious  in  connection  with  a 
potentially  large  expansion  of  production  determined  by  a  significant  increase  in  demand. 
Accordingly, feed and food crop-based fuels should not be promoted. This approach is in line 
with the relevant Union policy framework, which tends to limit or even phase out the use of 
crop-based  biofuels,  for  environmental  reasons.  This  is  notably  the  case  in  the  Renewable 
Energy  Directive,  which  caps  the  use  of  crop-based  biofuels  because  of  their  limited 
environmental  benefits,  limited  greenhouse  gas  savings  potential,  and  the  fact  that  such 
biofuels are in direct competition with the food and feed sectors for access to feedstock. The 
non-inclusion of  crop-based biofuels  should also aim to  avoid  the  risk biofuel  displacement 
from  the  road  sector  towards  air  transport,  as  this  could  slow  down  the  decarbonisation  of 
road transport, which currently remains by far the most polluting transport mode. The aviation 
sector  has  currently  insignificant  levels  of  demand  for  food  and  feed  crops-based  biofuels, 
since over 99% of currently used aviation fuels are of fossil origin. It is therefore appropriate 
to avoid the creation of a potentially large demand of food and feed crops-based biofuels by 
promoting their use under this Regulation.  

Technologies that are the most industrially mature and at the same time present high levels of 
sustainability  potential,  such  as  sustainable  aviation  fuels  produced  from  waste  lipids 
(feedstock  listed  in  Annex  IX  Part  B  of  RED  II),  should  be  eligible  in  order  to  launch  the 
market and allow for emissions reductions already in the short term. Whereas such a measure 
is expected to reduce substantially emissions from the transport sector as a whole, at present, 
the  large  majority  of  liquid  biofuels  are  produced  for  the  road  sector.  Therefore,  a  shift  of 
feedstock  for  production  of  biofuels  in  the  road  sector  to  production  for  the  aviation  sector 
may  occur,  but  would  be  limited.  Indeed,  it  estimate  that  the  potential  displacement  for 
biofuels produced from Annex IX Part B of RED II would be around 3.2% by 2030 5. 

The gradual introduction of sustainable aviation fuels on the air transport market is expected 
to  result  in  increased  aviation  fuel  costs  for  airlines.  This  may  accentuate  pre-existing 

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Impact Assessment on a proposal for a Regulation on ensuring a level playing field for sustainable air 
transport. 

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distortive  practices  by  aircraft  operators,  such  as  fuel  tankering.  The  present  proposal  for  a 
Regulation  therefore  aims  to  gear  the  EU  aviation  market  with  robust  rules  to  ensure  that 
gradually  increasing  shares  of  sustainable  aviation  fuels  can  be  introduced  at  EU  airports 
without detrimental effects on the competitiveness of the EU aviation internal market. 

An essential factor to ensure that the obligation to supply sustainable aviation fuels does not 
harm  the  level  playing  field  of  the  air  transport  market,  is  to  impose  a  clear  and  uniform 
obligation for all aviation fuel suppliers on the EU internal market. Due to the inherent cross-
border  and  global  dimension  of  air  transport,  a  harmonised  aviation-specific  Regulation  is 
preferred, over a framework requiring transposition at national level, as the latter could result 
in a patchwork of national measures with differing requirements and targets. For a clear and 
effective policy design, obligations on aviation fuel suppliers as regards sustainable aviation 
fuels should be set out exclusively in this Regulation, which constitutes a lex specialis of the 
Renewable Energy Directive. As the Regulation sets minimum shares of sustainable aviation 
fuel,  it  does  not  prevent  airlines  or  fuel  suppliers  from  pursuing  more  ambitious 
environmental  objectives  or  seeking  other  economic/financial  advantages  related  to  SAF 
through uplifting or supplying higher shares of sustainable aviation fuels. To this end, airlines 
should  be  able  to  seek  to  ensure  adequate  arrangements  with  aviation  fuel  suppliers  to 
increase their uptake of sustainable aviation fuels. The Regulation does not include tradability 
of  sustainable  aviation  fuel  use  (so-called  ‘book  and  claim’  system).  If  trading  were 
introduced  at  any  point  in  the  future,  it  should  be  governed  by  robust  rules  ensuring  the 
environmental integrity of the system. 

This  Regulation  should  be  accompanied  with  intensified  efforts  of  the  EU  and  its  Member 
States  at  ICAO  to  establish  binding  targets  for  the  use  of  sustainable  aviation  fuels  in 
international  aviation,  with  an EU strategic alliance to  strengthen value chain  of sustainable 
aviation  fuels  production  in  the  EU  notably  for  the  most  innovative  technologies  such  as 
advanced biofuels and synthetic aviation fuels, including notably funding mechanisms such as 
contracts for differences and measures to facilitate the certification of innovative sustainable 
aviation fuels technologies. 

• 

Consistency with existing policy provisions in the policy area 

The present proposal for a Regulation is consistent with the EU’s air transport policy, and in 
particular with the relevant rules forming the framework of the EU aviation internal market. It 
pursues  the  same  objectives  as  Regulation  (EC)  No  1008/2008  of  the  European  Parliament 
and of the Council of 24 September 2008 on common rules for the operation of air services in 
the Community, namely to ensure that airlines operating in the EU can compete on the basis 
of equal opportunity. The proposed Regulation is also in line with Regulation (EU) 2019/712 
of the European Parliament and of the Council of 17 April 2019 on safeguarding competition 
in  air transport, which aims  to  ensure that all  air  carriers operating to  and from  the EU  can 
benefit of a level playing field.  

The  present  proposal  for  a  Regulation  is  consistent  with  Regulation  (EU)  2018/1139  of  the 
European Parliament and of the Council of 4 July 2018 on common rules in the field of civil 
aviation  and  establishing  a  European  Union  Aviation  Safety  Agency  (EASA),  and  in 
particular  with  Commission  Regulation  (EU)  No  965/2012  of  5  October  2012  laying  down 

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technical requirements and administrative procedures related to air operations. The proposed 
Regulation  requires  EASA  to  receive  and  process  reports  from  airlines,  notably  on  their 
aviation  fuel  uplifts.  The  aviation  fuel  uplift  obligation  established  under  the  proposed 
Regulation  should  be  consistent  with  the  rules  on  aviation  fuel  safety  as  set  out  under 
Regulation (EU) No 965/2012. 

The proposed Regulation is consistent with the Renewable Energy Directive6 (RED II), as it is 
expected  to  result  in  an  increased  use  of  renewable  energy  in  air  transport.  The  proposed 
Regulation  relies  on  components  of  the  RED  II  rules,  notably  its  sustainability  framework. 
RED  II  is  a  cross-sector  framework  that  sets  targets  for  overarching  sectors.  It  has  been 
insufficient  to  boost  the  uptake  of  sustainable  aviation  fuels  due  to  the  specificities  of  the 
aviation sector, in particular the strong EU-wide and global competitive cost pressure of the 
sector,  as  well  as  the  highly  integrated  and  competitive  EU  aviation  internal  market  and  its 
global  dimension.  The  proposed  Regulation  lays  down  fully  harmonised  requirements  to 
ensure a level  playing field  between  airlines and the avoidance of competitive disadvantage 
between EU airports.  

The proposed Regulation is coherent with the EU Emissions Trading Scheme (ETS)7, which 
applies  to  aviation.  It  is  expected to  interact  smoothly with  the EU ETS,  which contains an 
incentive for aircraft operators to use of sustainable aviation fuels, i.e. airlines are not required 
to surrender allowances when reporting the use of SAF. The effect of the EU ETS is expected 
to be strengthened in the context of its upcoming revision. The proposed Regulation relies on 
the  EU  ETS  by  making  a  cross  reference  to  the  processes  required  for  the  verification  of 
reports by airlines (articles 14 and 15 of the EU ETS). 

The  proposed  Regulation  is  coherent  with  the  Alternative  Fuels  Infrastructure  Directive 
(AFID), but  is  expected  to  have limited interaction with  it. The directive creates a common 
framework  of  measures  for  the  deployment  of  alternative  fuels  infrastructure  in  the  EU.  As 
sustainable  aviation  fuels  are  fungible  with  conventional  jet  fuel,  the  needs  for  additional 
infrastructure  at  airports  are  limited,  but  it  is  nevertheless  important  to  ensure  that  the 
infrastructure provided is fit for purpose.  

• 

Consistency with other Union policies 

The objectives of the proposed Regulation are also in line with the objectives of the European 
Green Deal, namely to achieve 55% of emission reductions at EU level by 2030 and to reach 
a carbon neutral economy by 2050. It aims to ensure a level playing field among actors of the 
aviation  single  market,  and  gear  the  sector  with  robust  rules  ensuring  its  competitiveness 
while it introduces increasing shares of sustainable aviation fuels. This is in line with the EU’s 
policy objectives of  a swift recovery of the hardest  hit sectors from  the COVID-19 crisis,  a 
strong EU Single Market, conducive to high levels of growth and jobs. Finally, the proposed 
Regulation  is  in  line  with  the  objectives  of  transitioning  away  from  fossil  energy,  towards 

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Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the 
promotion of the use of energy from renewable sources 
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a 
scheme for greenhouse gas emission allowance trading within the Community 

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renewable  sources  of  energy,  and  to  improve  the  EU’s  energy  security  by  reducing  our 
dependencies on third-country sourced energy products. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposed  Regulation  aims  to  ensure  a  level  playing  field  among  actors  of  the  aviation 
single  market,  and  gear  the  sector  with  robust  rules  ensuring  its  competitiveness,  while 
stepping up its sustainability. The legal text will include detailed aviation-specific provisions 
to cater for the complexities of the sector. 

Article 100(2) empowers the Union to lay down appropriate provisions in air transport. 

 • 

Subsidiarity (for non-exclusive competence)  

Air transport is a matter of high EU relevance, since it is a highly integrated market operating 
in a network dimension across the whole of the EU and beyond. The cross-border dimension 
is inherent to air transport, which makes any fragmented regulatory framework a significant 
hurdle for air transport economic actors.  

An intervention at EU level is necessary, as the competitiveness of the EU aviation internal 
market as a whole cannot be addressed adequately at national level. An EU-level intervention 
is necessary in particular to avoid a patchwork of national measures with possible unintended 
effects. Whereas the objective of the proposed Regulation is to restore a level playing field in 
the  air  transport  market,  different  levels  of  obligations  per  Member  State  could  have  the 
opposite  effect  and  distort  further  the  aviation  market,  encouraging  adverse  practices  by 
aircraft operators such as fuel tankering.  

Finally, when it comes to imposing an obligation on the supply of sustainable aviation fuels, 
EU-level action with harmonised aviation-specific rules applying directly to market actors is 
expected  to  be  more  effective  than  national  measures  setting  different  requirements  and 
targets. 

• 

Proportionality 

EU-level  action  is  expected  to  set  a  clear  policy  direction  for  market  players  from  both  the 
aviation  and  fuels  industries.  One  clear  set  of  EU  rules  at  EU  level  means  that  airlines  can 
operate based on equal opportunities across the EU, restoring a level playing field for airlines 
and airports. It will also give clear signals to the aviation fuels industry  on the level of fuel 
supply  and  the  fuel  technologies  to  invest  in.  A  single  set  of  rules  also  means  reduced 
compliance costs for market players. 

EU-level action on SAF would contribute to achieving the increased EU’s climate ambition as 
set  out  in  the  European  Climate  Law.  The  2030  Climate  Target  Plan  establishes  that  SAF 
have a major role to play to reduce emissions from aviation by 2030 and 2050 and attain EU 
climate  goals.  Therefore,  establishing  EU  rules  on  SAF  production  and  use  allows  taking  a 
“tailored”  approach  towards  meeting  the  targets.  Relying  on  national  measures  only  with 
likely different targets (if any) would incur the risk that the aggregated level of ambition is not 

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sufficient.  The  current  initiative  can  also  support  the  forthcoming  review  of  the  Renewable 
Energy Directive by reinforcing the share of renewable energy in the transport sector. 

EU-level  action  may  have  positive  effects  at  international  level.  As  EU  intervention  would 
have  effects  on  the  entire  aviation  and  SAF  EU  market,  it  is  expected  to  have  higher 
prominence  towards  third  countries  than  isolated  national  initiatives.  Spill-over  effects  are 
also  likely  to  occur  more  easily,  whereby  third  countries  may  consider  adopting  similar 
measures. In turn, this could accelerate the ongoing work at ICAO level on the use of SAF. In 
short,  EU  action  could  spur  further  developments  on  the  production  and  uptake  of  SAF 
outside  of  the  EU,  which  could  help  create  a  level  playing  field  at  global  level,  as  well  as 
reduce air transport emissions at a wider scope. 

• 

Choice of the instrument 

The  present  initiative  must  be  rolled  out  swiftly  and  efficiently,  as  a  key  deliverable  of  the 
European  Green  Deal  and  the  Sustainable  and  Smart  Mobility  Strategy,  and  as  a  necessary 
building block towards reaching EU’s climate  goals  by 2030 and 2050 by  ensuring that the 
aviation sectors speed up its own decarbonisation without jeopardising the well-demonstrated 
benefits of a highly integrated aviation internal market. As explained in section 1.4 and Annex 
11, this can be achieved most successfully by directly regulating economic actors at EU level 
through an internal market Regulation. Indeed, common rules applying directly and uniformly 
to aviation and fuel market actors across the EU will provide clarity and uniformity. As the 
aviation  single  market  is  inherently  integrated  at  EU  level,  it  functions  best  when  rules  are 
applied to all airlines in the same way. Imposing the same requirements to all market players 
reduces  the  risks  of  distortion  of  competition  and  sends  clear  signals  to  non-EU  aviation 
market  actors,  when  flying  in  the  EU.  A  uniform  set  of  rules  across  the  EU,  as  established 
under a Regulation, will allow to send loud and clear signals to the market. As the transition 
to  SAF  requires  significant  investments,  it  is  indispensable  that  the  regulatory  framework 
provides a single, long-term and robust set of rules to all investors EU-wide. In particular, it is 
crucial to avoid the creation of a patchwork of differing measures at national level, as would 
be  the  case  if  implemented  under  a  cross-sectoral  directive.  While  this  can  function  with 
transport modes like road or rail, it cannot be successful for transport modes that are so cross-
border and global as aviation. The market scale of most airlines is EU-wide or even global. A 
patchwork of national transpositions could  reduce the  effectiveness of the policy and put  in 
jeopardy the effective decarbonisation of air transport. It could also be conducive to different 
economic  behaviours  in  the  aviation  and  fuel  industries  from  one  Member  State  to  another. 
This could lead to practices of cost avoidance (e.g. via fuel tankering) that would undermine 
the functioning of the Single Market. The present initiative will have an important impact on 
air transport actors and the aviation internal market as a whole. It is essential that obligations 
set  on  all  airlines  apply  to  all  airlines  uniformly,  as  can  be  ensured  via  a  regulation.  It  is 
equally  important  for  the  effectiveness  of  this  initiative  that  the  fuel  supply  obligation  be 
implemented  and  enforced  in  a  uniform  way.  Differing  fuel  supply  obligations  in  different 
areas  of  the  EU  (e.g.  different  targets,  varying  sustainability  standards,  etc.)  would  set 
differences of treatments between airlines and  could  induce competitive distortions  between 
EU airports or put EU aviation actors at disadvantage with non-EU competitors. The present 

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initiative  should  be  implemented  in  a  standalone  regulation  in  order  to  cater  for  the 
specificities and complexities of the aviation single market. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

This  is  a  new  initiative.  Therefore,  there  has  not  been  any  ex-post  evaluation  and  fitness 
check. 

• 

Stakeholder consultations 

This proposal for a Regulation follows a comprehensive consultation that took place over the 
course of 2020. The Commission carried out a public consultation in March and April 2020 
on  the  inception  impact  assessment.  A  total  of  121  feedback  were  received  from  public 
authorities,  aeronautics  and  fuels  industries,  not-for-profit  organisations,  academics  and 
citizens.  In  general,  the  feedback  expressed  support  for  EU-level  regulatory  action  to  boost 
the  uptake  of  sustainable  aviation  fuels.  The  Commission  organised  two  roundtables  (in 
March  and  November  2020),  each  time  with  sessions  dedicated  to  discussions  with 
stakeholders  and Member States, and sessions dedicated to  discussions  with  Member States 
only. The roundtables allowed to get direct views and exchange with the participants on the 
need  for  regulatory  action  at  EU  level  on  sustainable  aviation  fuels.  The  first  roundtable 
allowed  to  gain  valuable  insights  on  the  problem  definition,  while  the  second  roundtable 
focused  on  the  policy  options,  enabling  participants  to  give  their  views  on  their  preferred 
option,  and  suggesting  adjustments  in  the  design  of  the  proposed  options.  An  open  public 
consultation  of  12  weeks  ran  from  August  to  October  2020.  A  total  of  156  replies  were 
collected  from  public  authorities,  aeronautics  and  fuels  industries,  non-governmental 
organisations, academics and citizens. In general, the replies expressed support for EU-level 
regulatory  action  to  boost  the  uptake  of  sustainable  aviation  fuels  in  the  form  of  a  SAF 
blending  mandate.  Valuable  information  was  collected  on  the  preference  of  respondents 
towards  specific  designs  of  this  measure.  Finally,  in  the  course  of  the  supporting  study 
performed by an external contractor, a targeted consultation was performed, to obtain specific 
and detailed insights on the functioning of the aviation market, the state of the aviation fuels 
market,  the  production  of  sustainable  aviation  fuels  and  the  various  existing  or  upcoming 
policies supporting the use of sustainable aviation fuels. This targeted consultation focused on 
actors  of  the  aeronautics  industry,  the  aviation  fuels  industry,  Member  States,  not-for-profit 
organisations and international aviation organisations. 

Throughout this comprehensive consultation strategy, the large majority of stakeholders of the 
aviation  (airlines,  airports,  aircraft  manufacturers)  and  fuel  industries,  Member  States  and 
NGOs  supported  establishing  a  SAF  obligation  as  an  effective  policy  mechanism  to  boost 
SAF  production  and  uptake  and  successfully  decarbonise  the  aviation  sector.  Stakeholders 
were  quite  divided  on  the  specific  design  of  the  option  but  a  majority  of  fuel  suppliers, 
Member States, NGOs, airports and part of the airlines support a supply-side SAF obligation 
with flexibility in the fuel distribution, and covering jet fuel supplied for all flights departing 

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from EU airports. At the same time, the majority of stakeholders saw the need for measures 
preventing  carbon  leakage  and  distortion  in  the  aviation  internal  market.  A  majority  of 
stakeholders  (airlines,  airports,  fuel  industry,  NGOs,  Member  States)  also  support  specific 
incentives  to  support  RFNBOs.  All  these  measures  were  included  in  the  preferred  policy 
option. 

• 

Collection and use of expertise 

A  study  was  conducted  by  an  external  contractor  to  support  the  impact  assessment 
underpinning the present proposal.  This  study started in  July 2020 and was concluded early 
2021. The study provided valuable insights to the Commission services notably to design the 
policy options, assess their environmental, economic and social impacts, and collect the views 
of the directly impacted stakeholders.  

• 

Impact assessment 

The policy options proposed were structured around a regulatory requirement consisting of a 
SAF obligation. This requirement allows for restoring a level playing field in the air transport 
sector as regards the uplift of aviation fuel and keeping it while increasing the use of SAF in 
aviation.  Policy  options  provided  different  ways  to  design  the  obligation.  A  first  set  of 
Options included an obligation on fuel suppliers to distribute SAF at all EU airports. A second 
set of options included an obligation on airlines to uptake SAF when flying from EU airports 
(one  sub-option  covered  all  flights,  the  other  sub-option  covered  intra-EU  flights  only). 
Finally, a third set of options included obligations on the fuel suppliers to distribute SAF with 
some  flexibility  at  the  start,  and  on  airlines  to  uptake  jet  fuel  before  departing  from  EU 
airports.  Targets  were  designed  in  SAF  volume  terms  for  options,  and  in  jet  fuel  CO2 
intensity reduction terms for the others. All options contained incentives to support renewable 
fuels of non-biological origin (RFNBOs). The preferred option was to impose a SAF blending 
mandate  on  the  fuel  suppliers  and  a  jet  fuel  uplift  obligation  on  airlines,  including  a  sub-
mandate on RFNBOs. This option was preferred as it allows to ensure a level playing field in 
the air transport market while scaling up significantly SAF production and uptake.  

The  preferred  policy  options  allows  to  maintain  the  competitiveness  of  the  air  transport 
industry  and  leads  to  a  significant  reduction  of  well-to-wing  CO2  emissions  in  the  aviation 
sector,  i.e.  by  around  60-61%  by  2050,  compared  to  the  baseline  scenario.  Air  pollutant 
emissions  decrease  by  around  9%  by  2050  relative  to  the  baseline.  Overall,  environmental 
costs  of  aviation  (related  to  CO2  emissions  and  air  pollutants  emissions)  are  reduced  by 
around €87-88 billion compared to  the baseline,  expressed as present  value over 2021-2050 
period.  SAF  production  capacity  increases  by  an  additional  25.5-25.6Mt  by  2050.  SAF 
emergence  on  the  market  leads  to  a  large  reduction  of  aviation’s  reliance  on  fossil  jet  fuel, 
which consumption reduces by 65% by 2050 compared to the baseline. The energy security of 
the EU improves as imports of fossil energy from third countries decrease and feedstock and 
renewable electricity for SAF production are sourced in the EU (EU-produced SAF represents 
92% of total SAF use in 2050). Under the preferred policy options, SAF technologies with the 
highest  decarbonisation  potential  emerge  on  the  market  in  significant  quantities  earlier  than 
without policy action. SAF prices decrease compared to current estimates, which contributes 

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to reducing the price gap with fossil jet fuel over time. The preferred policy options lead to 
net  job  creation  in  the  EU,  i.e.  around  202,100  additional  jobs  compared  to  the  baseline. 
Finally, the reduction in air pollution has positive effects on public health (i.e. external costs 
from air pollution decrease by about €1.5 billion over the period 2021 to 2050, compared to 
the baseline).  

Overall POs C1 and C2 lead to an increase of the costs of €20.3 billion (C1) and €14.6 billion 
(C2) relative to the baseline over the period 2021 to 2050. These costs are largely driven by 
an increase in jet fuel cost relative to the baseline, i.e. €103.5 billion (C1) and €88.2 billion 
(C2), expressed as present value over 2021-2050. The increase in fuel costs is reflected on air 
fares, which are estimated to increase by around 8.1-8.2% by 2050. Higher air fares lead to a 
slight  reduction  in  total  passenger  air  transport  activity  relative  to  the  baseline,  despite  still 
growing by 77% by 2050 relative to  2015. This  triggers lower  capital  and operational  costs 
for  air  transport  relative  to  the  baseline,  i.e.  by  €84  billion  (C1)  and  €74.5  billion  (C2). 
Additional logistics costs amount to €0.19 billion (C1 and C2). Airlines also incur an increase 
in reporting costs of €0.34 billion (C1 and C2) relative to the baseline, expressed as present 
value over 2021-2050. For the SAF producers, the investment needs over the period 2021 to 
2050  are  estimated  at  around  €10.4-10.5  billion.  Indeed,  104  to  106  additional  SAF  plants 
need to be built in the EU by 2050 to cater for the necessary SAF production capacity.  

• 

Regulatory fitness and simplification 

The proposed Regulation avoids imposing undue burden on economic operators by reducing 
compliance  costs.  In  particular  in  the  first  five  years  of  its  application,  it  provides  some 
flexibility  in  the  way  aviation  fuel  suppliers  can  fulfil  the  sustainable  aviation  fuel  supply 
obligation.  This  is  expected  to  reduce  logistics  costs  and  avoid  an  increase  of  sustainable 
aviation  fuels  costs.  As  aviation  fuel  represent  a  sizeable  share  of  aircraft  operators 
operational costs, this is expected to have a positive impact on their competitiveness. 

• 

Fundamental rights 

This proposal has no implications on fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

The  budgetary  implications  are  related  notably  to  the  review  of  reports  and  assessment  of 
compliance of the economic operators subject to obligations, as well as to yearly reporting by 
EASA to the Commission. These are assessed in detail in the Legislative Financial Statement. 
IT  development  and  procurement  choices  will  be  subject  to  pre-approval  by  the  European 
Commission Information Technology and Cybersecurity Board. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The proposed Regulation includes monitoring, reporting and verification systems that allow to 
ensure that it is implemented correctly. In particular, aircraft operators and fuel suppliers will 
be required to  report on  a  yearly basis. Such  reports will be verified by independent  bodies 
and  assessment  of  compliance  of  aircraft  operators  and  fuel  suppliers  will  be  undertaken  to 

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determine whether they have fulfilled their respective obligations. Further, on a yearly basis, 
EASA will report to the Commission notably on the  compliance of economic operators and 
on the status of the aviation and sustainable aviation fuels markets. Finally, the Commission 
will report to the European Parliament and the Council, at least every five years after the date 
of application of this Regulation, the evolution of the aviation fuels market and its impact on 
the  aviation  internal  market  of  the  Union,  including  regarding  the  possible  extension  of  the 
scope  of  this  Regulation  to  other  energy  sources,  and  on  possible  need  to  adjust  specific 
features of the proposed Regulation. 

• 

Detailed explanation of the specific provisions of the proposal 

Article 1 of the proposal describes the subject matter of the proposed Regulation, which lays 
down  harmonised  rules  aiming  to  maintain  a  competitive  level  playing  field  on  the  Union 
aviation  internal  market  while increasing the uptake of sustainable aviation fuels  by aircraft 
operators  and  the  distribution  of  sustainable  aviation  fuels  at  Union  airports.  Article  2 
specifies the scope of the Regulation. Article 3 provides several definitions of importance to 
the Regulation. Article 4 establishes the obligation for aviation fuel suppliers to ensure that all 
aviation fuel made available to aircraft operators at Union airports contains a minimum share 
of sustainable aviation fuel, including a minimum share of synthetic fuel. Article 5 establishes 
the obligation for aircraft operators to ensure that the yearly quantity of aviation fuel uplifted 
at  a  given  Union  airport  is  of  at  least  90%  of  the  yearly  aviation  fuel  required.  Article  6 
defines the obligations for Union Airports to provide the infrastructure necessary to facilitate 
the  access  of  aircraft  operators  to  aviation  fuels  containing  shares  of  sustainable  aviation 
fuels.  Article  7  specifies  the  reporting  obligations  for  aircraft  operators.  Article  8  sets  out 
rules  on  the  claiming  of  use  of  sustainable  aviation  fuels  that  concern  more  than  one 
greenhouse  gas  scheme.  Article  9  specifies  the  reporting  obligations  for  aviation  fuel 
suppliers.  Article  10  defines  the  rules  on  competent  authorities  to  be  designated  by  the 
Member  States  to  ensure  enforcing  of  this  Regulation.  Article  11  sets  out  rules  on 
administrative  fines.  Article  12  establishes  an  obligation  for  EASA  to  publish  a  yearly 
technical  report  on  the  basis  of  the  yearly  reports  submitted  by  aircraft  operators  and  fuel 
suppliers. Article 13 creates a transition period of 5 years in which aviation fuel suppliers may 
supply the minimum share of sustainable aviation fuel as an average over all the aviation fuel 
they supplied across Union airports for that reporting period. Article 14 defines an obligation 
for the Commission to the European Parliament and the Council to report on several aspects 
of the application of this Regulation, at least every five years. Article 15 provides for the date 
of  entry  into  force  of  the  Regulation.  Annex  I  defines  the  minimum  shares  of  sustainable 
aviation  fuel,  including  the  minimum  shares  of  synthetic  fuel,  of  the  aviation  fuel  to  be 
supplied, and Annex II provides a template for the reporting obligation of aircraft operators. 

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2021/0205 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on ensuring a level playing field for sustainable air transport 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 100(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee8,  
Having regard to the opinion of the Committee of the Regions9,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

Over the past decades, air transport has played a crucial role in the Union's economy 
and  in  the  everyday  lives  of  Union  citizens,  as  one  of  the  best  performing  and  most 
dynamic  sectors  of  the  Union  economy.  It  has  been  a  strong  driver  for  economic 
growth, jobs, trade and tourism, as well as for connectivity and mobility for businesses 
and citizens alike, particularly within the Union aviation internal market. Growth in air 
transport  services  has  significantly  contributed  to  improving  connectivity  within  the 
Union  and  with  third  countries,  and  has  been  a  significant  enabler  of  the  Union 
economy.  

From  2020,  air  transport  has  been  one  of  the  hardest  hit  sector  by  the  COVID-19 
crisis. With the perspective of an end to the pandemic in sight, it is expected that air 
traffic will gradually resume in the coming years and recover to its pre-crisis levels. At 
the  same  time,  emissions  from  the  sector  have  been  increasing  since  1990  and  the 
trend of increasing emissions could return as we overcome the pandemic. Therefore, it 
is necessary to prepare for the future and make the necessary adjustments ensuring a 
well-functioning air transport market that contributes to achieving the Union’s climate 
goals, with high levels of connectivity, safety and security.  

The  functioning  of  the  Union  air  transport  sector  is  determined  by  its  cross-border 
nature across the Union, and by its global dimension. The aviation internal market is 
one of the most integrated sectors in the Union, governed by uniform rules on market 
access and operating conditions. The air transport external policy is governed by rules 
established at global level at the International Civil Aviation Organisation (ICAO), as 

8 
9 

OJ C , , p. . 
OJ C , , p. . 

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(4) 

(5) 

(6) 

(7) 

well as by comprehensive multilateral or bilateral agreements between the Union or its 
Member States, and third countries.  

The  air  transport  market  is  subject  to  strong  competition  between  economic  actors 
across  the  Union,  for  which  a  level  playing  field  is  indispensable.  The  stability  and 
prosperity  of  the  air  transport  market  and  its  economic  actors  relies  on  a  clear  and 
harmonised  policy  framework  where  aircraft  operators,  airports  and  other  aviation 
actors can operate on the basis of equal opportunities. Where market distortions occur, 
they  risk  putting  aircraft  operators  or  airports  at  a  disadvantage  with  internal  or 
external  competitors.  In  turn,  this  can  result  in  a  loss  of  competitiveness  of  the  air 
transport industry, and a loss of air connectivity for citizens and businesses. 

In particular, it is essential to ensure a level playing field across the Union air transport 
market  regarding  aviation  fuel,  which  account  for  a  substantial  share  of  aircraft 
operators’  costs.  Variations  in  fuel  prices  can  affect  significantly  aircraft  operators’ 
economic  performance  and  negatively  impact  competition  on  the  market.  Where 
differences in aviation fuel prices exist between Union airports or between Union and 
non-Union airports, this can lead aircraft operators to adapt their refuelling strategies 
for economic reasons. Fuel tankering increases aircraft’s fuel consumption and results 
in  unnecessary  greenhouse  gas  emissions.    Fuel  tankering  by  aircraft  operators 
accordingly  undermines  of  the  Union’s  efforts  towards  environmental  protection. 
Some  aircraft  operators  are  able  to  use  favourable  aviation  fuel  prices  at  their  home 
base as a competitive advantage towards other airlines  operating similar routes. This 
can have detrimental effects on the competitiveness of the sector and  be harmful to air 
connectivity.  This  Regulation  should  set  up  measures  to  prevent  such  practices  in 
order to avoid  unnecessary  environmental  damage as  well as to  restore  and preserve 
the conditions for fair competition on the air transport market. 

A  key  objective  of  the  common  transport  policy  is  sustainable  development.  This 
requires  an  integrated  approach  aimed  at  ensuring  both  the  effective  functioning  of 
Union transport systems and protection of the environment. Sustainable development 
of  air  transport  requires  the  introduction  of  measures  aimed  at  reducing  the  carbon 
emissions from  aircraft flying from  Union airports. Such measures  should contribute 
to meeting the Union’s climate objectives by 2030 and 2050. 
The  Communication  on  a  Sustainable  and  Smart  Mobility  Strategy10  adopted  by  the 
Commission in December 2020 sets a course of action for the EU transport system to 
achieve  its  green  and  digital  transformation  and  become  more  resilient.  The 
decarbonisation  of  the  air  transport  sector  is  a  necessary  and  challenging  process, 
especially  in  the  short  term.  Technological  advancements,  pursued  in  European  and 
national  research  and  innovation  aviation  programmes  have  contributed  to  important 
emission reductions in the past decades. However, the global growth of air traffic has 
outpaced the sector’s emissions reductions.  Whereas new technologies are expected to 
help  reducing  short-haul  aviation’s  reliance  on  fossil  energy  in  the  next  decades, 
sustainable aviation fuels offer the only solution for significant decarbonisation of all 
flight  ranges,  already  in  the  short  term.  However,  this  potential  is  currently  largely 
untapped. 

10 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions:  Sustainable  and  Smart  Mobility 
Strategy – putting European transport on track for the future (COM/2020/789 final), 9.12.2020. 

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(8) 

(9) 

Sustainable  aviation  fuels  are  liquid,  drop-in  fuels,  fully  fungible  with  conventional 
aviation  fuel  and  compatible  with  existing  aircraft  engines.    Several  production 
pathways  of  sustainable  aviation  fuels  have  been  certified  at  global  level  for  use  in 
civil or military aviation. Sustainable aviation fuels are technologically ready to play 
an  important  role  in  reducing  emissions  from  air  transport  already  in  the  very  short 
term.  They  are  expected  to  account  for  a  major  part  of  the  aviation  fuel  mix  in  the 
medium  and  long  term.  Further,  with  the  support  of  appropriate  international  fuel 
standards, sustainable aviation fuels might contribute to lowering the aromatic content 
of the final fuel used by an operator, thus helping to reduce other non-CO2 emissions. 
Other alternatives to power aircraft, such as electricity or liquid hydrogen are expected 
to  progressively  contribute  to  the  decarbonisation  of  air  transport,  beginning  with 
short-haul flights. 

The gradual introduction of sustainable aviation fuels on the air transport market will 
represent  an  additional  fuel  cost  for  airlines,  as  such  fuel  technologies  are  currently 
more  expensive  to  produce  than  conventional  aviation  fuel.  This  is  expected  to 
exacerbate the pre-existing issues of level playing field on the air transport market as 
regards  aviation  fuel,  and  to  cause  further  distortions  among  aircraft  operators  and 
airports.  This  regulation  should  take  measures  to  prevent  that  the  introduction  of 
sustainable aviation fuels affects negatively the competitiveness of the aviation sector 
by defining harmonised requirements across the Union.  

(10)  At global level, sustainable aviation fuels are regulated at ICAO. In particular, ICAO 
establishes detailed requirements  on the sustainability, traceability  and accounting  of 
sustainable  aviation  fuels  for  use  on  flights  covered  by  the  Carbon  Offsetting  and 
Reduction  Scheme  for  International  Aviation  (CORSIA).  While  incentives  are  set  in 
CORSIA and sustainable aviation fuels are considered an integral pillar of the work on 
the  feasibility  of  a  Long-Term  Aspiration  Goal  for  international  aviation,  there  is 
currently  no  mandatory  scheme  on  the  use  of  sustainable  aviation  fuels  for 
international  flights.  Comprehensive multilateral  or bilateral  air transport agreements 
between the EU or its Member States, and third countries generally include provisions 
on  environmental  protection.  However,  for  the  time  being,  such  provisions  do  not 
impose  on  contracting  parties  any  binding  requirements  on  the  use  of  sustainable 
aviation fuels. 

(11)  At EU level, general rules on renewable energy for the transport sector are set out in 
Directive  (EU)  2018/2001  of  the  European  Parliament  and  of  the  Council11.  In  the 
past,  such  horizontal  cross-sectoral  regulatory  frameworks  have  not  proven  effective 
to  operate  a  transition  from  fossil  fuels  to  sustainable  aviation  fuel  in  air  transport. 
Directive  (EU)  2018/2001  and  its  predecessor  set  out  overarching  targets  across  all 
transport  modes  to  be  supplied  with  renewable  fuels.  As  aviation  is  a  small  fuels 
market for which renewable fuels are more costly to produce while a fully integrated 
European  transport  market,  in  comparison  to  other  transport  modes,  such  regulatory 
frameworks  should  be  complemented  with  aviation-specific  measures  to  effectively 
boost the deployment of sustainable aviation fuels. Further, national transpositions of 
Directive (EU) 2018/2001 risks creating significant fragmentation in the air transport 
market,  where  national  rules  on  sustainable  aviation  fuels  would  set  out  widely 
differing  targets.  This  would  be  expected  to  further  exacerbate  the  issues  of  level 
playing field in air transport.  

11 

Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the 
promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82). 

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(12)  Therefore,  uniform  rules  need  to  be  laid  down  for  the  aviation  internal  market  to 
complement  Directive  (EU)  2018/2001  and  to  deliver  on  its  overall  objectives  by 
addressing the specific needs and requirements  arising from  the EU aviation  internal 
market.  In  particular,  the  present  Regulation  aims  to  avoid  a  fragmentation  of  the 
aviation market, prevent possible competitive distortions between economic actors, or 
unfair practices of cost avoidance as regards the refuelling of aircraft operators. 

(13)  This  regulation  aims  in  the  first  instance  to  set  out  a  framework  restoring  and 
preserving  a  level  playing  field  on  the  air  transport  market  as  regards  the  use  of 
aviation  fuels.  Such  a  framework  should  prevent  divergent  requirements  across  the 
Union  that  would  exacerbate  refuelling  practices  distorting  competition  between 
aircraft operators or putting some airports at competitive disadvantage with others. In 
a second instance, it aims to gear the EU aviation market with robust rules to ensure 
that gradually increasing shares of sustainable aviation fuels can be introduced at EU 
airports without detrimental effects on the competitiveness of the EU aviation internal 
market. 

(14) 

It is essential to set harmonised rules across the EU internal market, applying directly 
and  in  a  uniform  way  to  aviation  market  actors  on  the  one  hand,  and  aviation  fuels 
market actors on the other hand. The overarching framework set out by Directive (EU) 
2018/2001  should  be  complemented  with  a  lex  specialis  applying  to  air  transport.  It 
should include gradually increasing targets for the supply of sustainable aviation fuels. 
Such targets should be carefully defined, taking into account the objectives of a well-
functioning  air  transport  market,  the  need  to  decarbonise  the  aviation  sector  and  the 
current status of the sustainable aviation fuels industry.  

(15)  The present Regulation should apply to aircraft engaged in civil aviation, carrying out 
commercial air transport flights. It should not apply to aircraft such as military aircraft 
and  aircraft  engaged  in  operations  for  humanitarian,  search,  rescue,  disaster  relief  or 
medical  purposes,  as  well  as  customs,  police  and  fire-fighting  operations.  Indeed, 
flights  operated  in  such  circumstances  are  of  exceptional  nature  and  as  such  cannot 
always  be  planned  in  the  same  way  as  regular  flights.  Due  to  the  nature  of  their 
operations,  they  may  not  always  be  in  a  position  to  fulfil  obligations  under  this 
Regulation,  as  it  may  represent  unnecessary  burden.  In  order  to  cater  for  a  level 
playing  field  across  the  EU  aviation  single  market,  this  regulation  should  cover  the 
largest possible share of commercial air traffic operated from airports located on EU 
territory.  At  the  same  time,  in  order  to  safeguard  air  connectivity  for  the  benefits  of 
EU citizens, businesses and regions, it is important to avoid imposing undue burden on 
air  transport  operations  at  small  airports.  A  threshold  of  yearly  passenger  air  traffic 
and freight  traffic should be defined, below  which airports would  not  be covered by 
this  Regulation;  however,  the  scope  of  the  Regulation  should  cover  at  least  95%  of 
total  traffic  departing  from  airports  in  the  Union.  For  the  same  reasons,  a  threshold 
should be defined to exempt aircraft operators accountable for a very low number of 
departures from airports located on EU territory. 

(16)  Development  and  deployment  of  sustainable  aviation  fuels  with  a  high  potential  for 
sustainability, commercial maturity and a high potential for innovation and growth to 
meet  future  needs  should  be  promoted.  This  should  support  creating  innovative  and 
competitive fuels markets and ensure sufficient supply of sustainable aviation fuels for 
aviation  in  short  and  long  term  to  contribute  to  Union  transport  decarbonisation 
ambitions, while strengthening Union’s efforts towards a high level of environmental 
protection. For this purpose, sustainable aviation fuels produced from feedstock listed 
in  Parts  A  and  B  of  Annex  IX  of  Directive  (EU)  2018/2001,  as  well  as  synthetic 

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aviation  fuels  should  be  eligible.  In  particular,  sustainable  aviation  fuels  produced 
from feedstock listed in Part B of Annex IX of Directive (EU) 2018/2001 are essential, 
as  currently  the  most  commercially  mature  technology  to  decarbonise  air  transport 
already in the short term.  

(17)  For  sustainability  reasons,  feed  and  food  crop-based  fuels  should  not  be  eligible.  In 
particular, indirect  land-use change occurs when the cultivation  of crops for biofuels 
displaces traditional production of crops for food and feed purposes. Such additional 
demand  increases  the  pressure  on  land  and  can  lead  to  the  extension  of  agricultural 
land into areas with high-carbon stock, such as forests, wetlands and peatland, causing 
additional  greenhouse  gas  emissions  and  loss  of  biodiversity  concerns.  Research  has 
shown that the scale of the effect depends on a variety of factors, including the type of 
feedstock  used  for  fuel  production,  the  level  of  additional  demand  for  feedstock 
triggered by the use of biofuels and the extent to which land with high-carbon stock is 
protected  worldwide.  The  highest  risks  of  indirect  land-use  change  have  been 
identified  for  biofuels,  fuels  produced  from  feedstock  for  which  a  significant 
expansion  of  the  production  area  into  land  with  high-carbon  stock  is  observed. 
Accordingly, feed and food crop-based fuels should not be promoted. This approach is 
in line Union policy and in particular with Directive (EU) 2018/2001 which limits and 
sets a cap on the use of such biofuels in road and rail transport, considering their lower 
environmental benefits, lower performance in terms of greenhouse reduction potential 
and broader sustainability concerns. In addition to the greenhouse gas emissions linked 
to indirect land-use change – which is capable of negating some or all greenhouse gas 
emissions savings of individual biofuels – indirect land-use change poses risks also to 
biodiversity.  This  risk  is  particularly  serious  in  connection  with  a  potentially  large 
expansion of production determined by a significant increase in demand. The aviation 
sector  has  currently  insignificant  levels  of  demand  for  food  and  feed  crops-based 
biofuels,  since  over  99%  of  currently  used  aviation  fuels  are  of  fossil  origin.  It  is 
therefore appropriate to  avoid the creation of a potentially large demand of food and 
feed  crops-based  biofuels  by  promoting  their  use  under  this  Regulation.  The  non-
eligibility of crop-based biofuels under this Regulation also minimises any risk to slow 
down the decarbonisation of road transport, which could otherwise result from a shift 
of crop-based biofuels from the road to the aviation sector. It is essential to minimise 
such  a  shift,  as  road  transport  currently  remains  by  far  the  most  polluting  transport 
sector.  

(18)  A  single,  clear  and  robust  sustainability  framework  is  necessary  to  provide  certainty 
for  the  aviation  and  fuels  industries  actors,  on  the  eligibility  of  sustainable  aviation 
fuels under this Regulation. To ensure consistency with other related EU policies, the 
eligibility of sustainable aviation fuels should be determined according to compliance 
with the sustainability criteria established in Article 29 of Directive 2018/200112.  

(19)  The present Regulation should aim to ensure that aircraft operators can compete on the 
basis  of  equal  opportunities  as  regards  the  access  to  sustainable  aviation  fuels.  To 
avoid  any  distortions  on  the  air  services  market,  all  Union  airports  covered  by  this 
Regulation  should  be  supplied  with  uniform  minimum  shares  of  sustainable  aviation 
fuels.  Whereas  the  market  is  free  to  supply  and  use  larger  quantities  of  sustainable 
fuel, this Regulation should ensure that the mandatory minimum shares of sustainable 
aviation  fuels  are  the  same  across  all  the  covered  airports.  It  supersedes  any 

12 

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requirements  established  directly  or  indirectly  at  national  or  regional  level  requiring 
aircraft  operators  or  aviation  fuel  suppliers  to  uptake  or  supply  sustainable  aviation 
fuels with different targets than the ones prescribed under this Regulation. In order to 
create a clear and predictable legal framework and  in doing so encourage the market 
development  and  deployment  of  the  most  sustainable  and  innovative  with  growth 
potential  to  meet  future  needs  fuel  technologies,  this  Regulation  should  set  out 
gradually increasing minimum shares of synthetic aviation fuels over time. Setting out 
a  dedicated  sub-obligation  on  synthetic  aviation  fuels  is  necessary  in  view  of  the 
significant  decarbonisation  potential  of  such  fuels,  and  in  view  of  their  current 
estimated  production  costs.  When  produced  from  renewable  electricity  and  carbon 
captured  directly  from  the  air,  synthetic  aviation  fuels  can  achieve  as  high  as  100% 
emissions  savings  compared  to  conventional  aviation  fuel.  They  also  have  notable 
advantages  compared  to  other  types  of  sustainable  aviation  fuels  with  regards  to 
resource efficiency (in particular for water needs) of the production process. However, 
synthetic aviation fuels’ production costs are currently estimated at 3 to 6 times higher 
than the market price of conventional aviation fuel. Therefore, this Regulation should 
establish a dedicated sub-obligation for this technology. Other types of synthetic fuels, 
such as low carbon synthetic fuels achieving high greenhouse gas reductions, could be 
considered  for  inclusion  in  the  scope  of  this  Regulation  in  the  course  of  future 
revisions, where such fuels become defined under the Renewable Energy Directive. 

It  is  essential to  ensure that the minimum shares of sustainable aviation  fuels  can be 
successfully  supplied  to  the  aviation  market  without  supply  shortages.  For  this 
purpose, sufficient lead-time should be planned to allow the renewable fuels industry 
to  develop  production  capacity  accordingly.  The  supply  of  sustainable  aviation  fuels 
should  become  mandatory  starting  in  2025.  Similarly,  in  order  to  provide  legal 
certainty  and  predictability  to  the  market  and  drive  investments  durably  towards 
sustainable aviation fuels production capacity, the terms of this Regulation should be 
stable over a long period of time. 

(20) 

(21)  With  the  introduction  and  ramp-up  of  sustainable  aviation  fuels  at  Union  airports, 
practices of fuel tankering may be exacerbated as a consequence of aviation fuel costs 
increases.  Tankering  practices  are  unstainable  and  should  be  avoided  as  they 
undermine the Union’s efforts to reduce environmental impacts from transport. Those 
would  be  contrary  to  the  aviation  decarbonisation  objectives  as  increased  aircraft 
weight  would  increase  fuel  consumption  and  related  emissions  on  a  given  flight. 
Tankering  practices  also  put  at  risk  the  level  playing  field  in  the  Union  between 
aircraft operators, and also between airports. This Regulation should therefore require 
aircraft operators to refuel prior to departure from a given Union airport. The amount 
of  fuel  uplifted  prior  to  departures  from  a  given  Union  airport  should  be 
commensurate with the amount of fuel necessary to operate the flights departing from 
that airport, taking into account the necessary compliance with fuel safety rules. The 
requirement ensures that equal conditions for operations in the Union applying equally 
to Union and foreign operators, while ensuring high level of environmental protection. 
As the Regulation does not define a maximum share of sustainable aviation fuels in all 
aviation  fuels,  airlines  and  fuel  suppliers  may  pursue  more  ambitious  environmental 
policies  with  higher  sustainable  aviation  fuels  uptake  and  supply  in  their  overall 
network of operations, while avoiding fuel tankering. 

(22)  Airports covered by this Regulation should ensure that all the necessary infrastructure 
is provided for delivery, storage and refuelling of sustainable aviation fuel, so as not to 
constitute  an  obstacle  with  respect  to  the  uptake  of  such  sustainable  aviation  fuel.  If 

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necessary, the Agency should be able to require a Union airport to provide information 
on  the  infrastructure  available  allowing  for  seamless  distribution  and  refuelling  of 
aircraft operators with sustainable aviation fuels. The role of the Agency should allow 
airports  and  airlines  to  have  a  common  focal  point,  in  the  event  where  technical 
clarification is necessary on the availability of fuel infrastructure. 

(23)  Aircraft operators should be required to report yearly to the Agency on their purchases 
of sustainable aviation fuel, as well as on the characteristics of this fuel. Information 
should  be  provided  on  the  characteristics  of  the  sustainable  aviation  fuels  purchased 
such as inter alia nature and origin of the feedstock, conversion pathway and lifecycle 
emissions. 

(24)  Aircraft operators should also be required to report yearly on their actual aviation fuel 
uplift per Union airport, so as to prove that no fuel tankering was performed. Reports 
should  be  verified  by  independent  verifiers  and  transmitted  to  the  Agency  for 
monitoring and assessment of compliance. Verifiers should determine the accuracy of 
the yearly aviation fuel required reported by the operators using a tool approved by the 
Commission.  

(25)  Aviation  fuel  suppliers  should  be  required  to  report  yearly  in  the  Union  database 
referred to in Article 28 of Directive (EU) 2018/2001, on their supply of aviation fuel, 
including sustainable aviation fuels. The Agency should report on a yearly basis to the 
Commission on the fulfilment by aircraft operators and aviation fuel suppliers of their 
respective obligations under this Regulation. This is important for the Commission to 
have clear visibility on the level of compliance to the Regulation. 

(26) 

(27) 

(28) 

It  is  not  possible  without  additional  procedures  to  determine  accurately  whether 
aircraft operators have actually physically uplifted shares of sustainable aviation fuels 
in  their  tanks  at  a  specific  Union  airports.  Therefore,  aircraft  operators  should  be 
allowed to report their use of sustainable aviation fuels based on purchasing records. 
Aircraft  operators  should  be  entitled  to  receive  from  the  aviation  fuel  supplier  the 
information that is necessary to report the sustainable aviation fuel purchase.   

It  is  essential  that  aircraft  operators  can  claim  the  use  of  sustainable  aviation  fuels 
under greenhouse gas schemes such as the EU Emissions Trading System or CORSIA, 
depending  on  the  route  of  their  flights.  However,  it  is  essential  that  this  regulation 
should not lead to a double counting of emissions reductions. Aircraft operators should 
only  be  allowed  to  claim  benefits  for  the  use  of  an  identical  batch  of  sustainable 
aviation  fuels  once.  Fuel  suppliers  should  be  requested  to  provide  free  of  charge  to 
aircraft  operators  any  information  pertaining  to  the  properties  of  the  sustainable 
aviation fuel sold to that aircraft operator and that is relevant for reporting purposes by 
the aircraft operator under this Regulation or greenhouse gas schemes. 

In  order  to  ensure  a  level  playing  field  of  the  aviation  internal  market  and  the 
adherence  to  the  climate  ambitions  of  the  Union,  this  Regulation  should  introduce 
effective, proportionate and dissuasive penalties on aviation fuel suppliers and aircraft 
operators  in  case  of  non-compliance.  The  level  of  the  penalties  needs  to  be 
proportionate  to  the  environmental  damage  and  to  the  prejudice  to  the  level-playing 
field  of  the  internal  market  inflicted  by  the  non-compliance.  When  imposing 
administrative fines, the authorities should take into account the evolution of the price 
of aviation fuel and sustainable aviation fuel in the reporting year; 

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(29)  The  penalties  for  the  suppliers  who  fail  to  meet  the  targets  set  in  this  Regulation 
should be complemented by the obligation to supply the market with the shortfall of 
meeting the quota in the subsequent year; 

(30)  This  Regulation  should  include  provisions  for  periodic  reports  to  the  European 
Parliament  and  the  Council  on  the  evolution  of  the  aviation  and  fuels  markets,  the 
effectiveness  of  key  features  of  the  Regulation  such  as  the  minimum  shares  of 
sustainable aviation fuels, the level of administrative fines or policy developments on 
sustainable  aviation  fuels  uptake  at  international  level.  Such  elements  are  key  to 
provide  a  clear  state  of  play  of  the  sustainable  aviation  fuels  market  and  should  be 
taken into account when considering a revision of the Regulation.  

(31)  A transitional period of 5 years should be provided to allow for a reasonable amount 
of  time  for  aviation  fuel  suppliers,  Union  airports  and  aircraft  operators  to  make  the 
necessary  technological  and  logistical  investments.  During  this  phase,  aviation  fuel 
containing  higher  shares  of  sustainable  aviation  fuel  may  be  used  to  compensate  for 
lower  shares  of  sustainable  aviation  fuels  or  for  the  reduced  availability  of 
conventional aviation fuel at other airports. 

(32)  Since the objective of this Regulation, namely to maintain a level playing field on the 
Union  air  transport  market  while  increasing  the  use  of  sustainable  aviation  fuels, 
cannot be sufficiently achieved by the Member States due to the cross-border nature of 
aviation, but can rather, by reason of the characteristics of the market and effects of the 
action,  be  better  achieved  at  Union  level,  the  Union  may  adopt  measures,  in 
accordance  with  the  principle  of  subsidiarity  as  set  out  in  Article  5  of  the  Treaty  on 
European Union. In accordance with the principle of proportionality, as set out in that 
Article, this Regulation does not go beyond what is necessary in order to achieve that 
objective. 

HAVE ADOPTED THIS REGULATION: 

Article 1  

Subject matter 

This Regulation lays down harmonised rules on the uptake and supply of sustainable aviation 
fuels.  

Article 2 

Scope 

This  Regulation  shall  apply  to  aircraft  operators,  Union  airports,  and  to  aviation  fuel 
suppliers. 

For the purposes of this Regulation, the following definitions apply: 

Article 3 

Definitions 

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– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

‘Union airport’ means an airport as defined in Article 2(2) of Directive 2009/12/EC 
of the European Parliament and of the Council13, where passenger traffic was higher 
than 1 million passengers or where the freight traffic was higher than 100000 tons in 
the  reporting  period,  and  is  not  situated  in  an  outermost  region,  as  listed  in  Article 
349 of the Treaty on the Functioning of the European Union; 

‘aircraft operator’ means a person that operated at least  729 commercial air transport 
flights  departing  from  Union  airports  in  the  reporting  period  or,  where  that  person 
may not be identified, the owner of the aircraft; 

‘commercial air transport flight’ means a flight operated for the purposes of transport 
of passengers, cargo or mail for remuneration or hire, or business aviation flights;  

‘aviation fuel’ means the fuel manufactured for direct use by aircraft; 

‘sustainable  aviation  fuels’  (‘SAF’)  means  drop-in  aviation  fuels  that  are  either 
synthetic aviation fuels, advanced biofuels as defined in Article 2, second paragraph, 
point 34 of Directive (EU) 2018/2001, or biofuels produced from the feedstock listed 
in   Part B of Annex IX  to  that Directive, which comply with  the sustainability and 
greenhouse gas emissions criteria laid down in Article 29(2) to (7) of that Directive 
and are certified in accordance with Article 30 of this Directive; 

‘batch’  means  a  quantity  of  sustainable  aviation  fuels  that  can  be  identified  with  a 
number and can be traced; 

‘lifecycle  emissions’  means  carbon  dioxide  equivalent  emissions  of  sustainable 
aviation  fuels  that take into  account  carbon dioxide equivalent  emissions of energy 
production,  transport,  distribution  and  use  on-board,  including  during  combustion, 
calculated  in accordance with Article 31 of Directive (EU) 2018/2001; 

‘synthetic  aviation  fuels’  means  fuels  that  are  renewable  fuels  of  non-biological 
origin,  as  defined  in  Article  2,  second  paragraph,  point  36  of  Directive  (EU) 
2018/2001, used in aviation; 

‘conventional  aviation  fuels’  means  fuels  produced  from  fossil  non-renewable 
sources of hydrocarbon fuels, used in aviation; 

‘aviation  fuel  supplier’  means  a  fuel  supplier  as  defined  in  Article  2,  second 
paragraph, point 38 of Directive (EU) 2018/2001, supplying aviation fuel at a Union 
airport; 

‘reporting  year’  means  a  period  of  one  year  in  which  the  reports  referred  to  in 
Articles 7 and 9 are to be submitted starting 1 January and ending 31 December; 

‘reporting  period’  means  a  period  from  1  January  until  31  December  of  the  year 
preceding the reporting year; 

‘yearly  aviation  fuel  required’  means  the  amount  of  aviation  fuel  necessary  to 
operate  the  totality  of  commercial  air  transport  flights  operated  by  an  aircraft 
operator, departing from a given Union airport, over the course of a reporting period;  

‘yearly  non-tanked  quantity’  means  the  difference  between  the  yearly  aviation  fuel 
required and the actual fuel uplifted by an aircraft operator prior to flights departing 
from a given Union airport, over the course of a reporting period; 

13 

Directive 2009/12/EC of the European Parliament and of the Council of 11 March 2009 on airport charges 

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– 

– 

‘total yearly non-tanked quantity’ means the sum of the yearly non-tanked quantities 
by an aircraft operator at all Union airports over the course of a reporting period; 

‘greenhouse gas scheme’ means a scheme granting benefits to aircraft operators for 
the use of sustainable aviation fuels. 

Article 4 

Share of sustainable aviation fuel available at Union airports 

 Aviation fuel suppliers shall ensure that all aviation fuel made available to aircraft operators 
at  each  Union  airport  contains  a  minimum  share  of  sustainable  aviation  fuel,  including  a 
minimum  share  of  synthetic  aviation  fuel  in  accordance  with  the  values  and  dates  of 
application set out in Annex I.  

Without prejudice to the application of Article 11(3) and (4), where an aviation fuel supplier 
fails to supply the minimum shares set out in Annex I for a given reporting period, it shall at 
least complement that shortfall in the subsequent reporting period. 

Article 5 

Refuelling obligation for aircraft operators 

The  yearly  quantity  of  aviation  fuel  uplifted  by  a  given  aircraft  operator  at  a  given  Union 
airport shall be at least 90% of the yearly aviation fuel required.  

Article 6 

Obligations of Union airports to provide the infrastructure 

Union  airports  shall  take  necessary  measures  to  facilitate  the  access  of  aircraft  operators  to 
aviation fuels containing shares of sustainable aviation fuels in accordance with Annex I and,  
shall provide the infrastructure necessary for the delivery, storage and uplifting of such fuels.  

Where  aircraft  operators  report  difficulties  to  the  European  Union  Aviation  Safety  Agency 
(‘the  Agency’)  in  accessing  aviation  fuels  containing  sustainable  aviation  fuels  at  a  given 
Union airport for lack of adequate airport infrastructure, the Agency may request the Union 
airport  to  provide  the  information  necessary  to  prove  compliance  with    paragraph  1.  The 
Union airport concerned shall provide the information without undue delay. 

The  Agency  shall  assess  the  information  received  and  inform  the  Commission  if  such 
information  allows  to  conclude  that  the  Union  airport  does  not  fulfil  its  obligations.  Union 
airports shall take the necessary measures to identify and address the lack of adequate airport 
infrastructure in 5 years after the entry into force of the Regulation or after the year when they 
exceed one of the thresholds in Article 3(a). 

Article 7 

Reporting Obligations for Aircraft Operators 

By 31 March of each reporting year, aircraft operators shall report the following information 
to the Agency: 

(a)  The total  amount of aviation  fuel  uplifted at  each Union airport,  expressed in 

tonnes;  

(b)  The yearly aviation fuel required, per Union airport, expressed in tonnes; 

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(c)  The  yearly  non-tanked  quantity,  per  Union  airport.  If  the  yearly  non-tanked 
quantity  is  negative  or  if  it  is  lower  than  10%  of  the  yearly  aviation  fuel 
required, the reported yearly non-tanked quantity shall be reported as 0; 

(d)  The  total  amount  of  sustainable  aviation  fuel  purchased  from  aviation  fuel 
suppliers,  for  the  purpose  of  operating  their  flights  departing  from  Union 
airports, expressed in tonnes. 

(e)  For  each  purchase  of  sustainable  aviation  fuel,  the  name  of  the  aviation  fuel 
supplier, the amount purchased expressed in tonnes, the conversion technology, 
the  characteristics  and  origin  of  the  feedstock  used  for  production,  and  the 
lifecycle  emissions  of  the  sustainable  aviation  fuel.  Where  one  purchase 
includes  sustainable  aviation  fuels  with  differing  characteristics,  the  report 
shall provide this information for each type of sustainable aviation fuel. 

The report shall be presented in accordance with the template laid down in Annex II. 

The report shall be verified by an independent  verifier in  compliance with  the requirements 
set out in Articles 14 and 15 of Directive 2003/87/EC of the European Parliament and of the 
Council14, and in Commission Implementing Regulation (EU) 2018/206715  

Article 8 

Aircraft operator claiming of use of sustainable aviation fuels 

Aircraft  operators  shall  not  claim  benefits  for  the  use  of  an  identical  batch  of  sustainable 
aviation fuels under more than one greenhouse gas scheme. Together with the report referred 
to in Article 7, aircraft operators shall provide the Agency with: 

(a)  A declaration of greenhouse gas schemes they participate in and in which the 

use of sustainable aviation fuels may be reported;  

(b)  A  declaration  that  they  have  not  reported  identical  batches  of  sustainable 

aviation fuels under more than one scheme. 

For the purpose of reporting sustainable aviation fuels use under the provisions of Article 7 of 
this  Regulation,  or  under  a  greenhouse  gas  scheme,  aviation  fuel  suppliers  shall  provide 
aircraft operators with the relevant information free of charge. 

Article 9 

Reporting obligations for fuel suppliers 

By 31 March of each reporting year, aviation fuel suppliers shall report in the Union Database 
referred  to  in  Article  28  of  Directive  (EU)  2018/2001,  the  following  information  relative  to 
the reporting period: 

(a)  The volume of aviation fuel supplied at each Union airport;  

(b)  The volume of sustainable aviation fuel supplied at each Union airport, and for 

each type of sustainable aviation fuel, as detailed in point c); 

14 

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Directive 2003/87/CE du Parlement européen et du Conseil du 13 octobre 2003 établissant un système d'échange de 
quotas d'émission de gaz à effet de serre dans la Communauté 
Commission  Implementing  Regulation  (EU)  2018/2067  of  19  December  2018  on  the  verification  of 
data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament 
and of the Council (OJ L 334, 31.12.2018, p. 94). 

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(c)  The  lifecycle  emissions,  origin  of  feedstock  and  conversion  process  of  each 

sustainable aviation fuel type supplied at Union airports. 

The Agency shall have access to the Union database and shall use the information contained 
in the Union database, once the information has been verified at Member State level pursuant 
to Article 28 of Directive (EU) 2018/2001. 

(1) 

(2) 

(3) 

(4) 

(5) 

(1) 

(2) 

(3) 

Article 10 

Competent authority 

Member States shall designate the competent authority or authorities responsible for 
enforcing  the  application  of  this  Regulation  and  for  imposing  the  fines  for  aircraft 
operators,  Union  airports  and  fuel  suppliers.  Member  States  shall  inform  the 
Commission thereof. 

The  Agency  shall  send  the  data  received  pursuant  to  Articles  7  and  9  to  the 
competent  authorities  of  the  Member  States.  The  Agency  shall  also  send  to  the 
competent  authorities  data  aggregated  for  the  aircraft  operators  and  aviation  fuels 
suppliers for which the authorities are competent pursuant to paragraphs 3, 4 and 5. 

The  competent  authorities  in  respect  of  an  aircraft  operator  shall  be  determined 
pursuant to Commission Regulation (EC) No 748/200916. 

The  competent  authorities  in  respect  of  Union  airports  shall  be  determined  on  the 
basis of the respective territorial jurisdiction. 

The  competent  authorities  in  respect  of  aviation  fuel  suppliers  shall  be  determined 
pursuant to their Member State of establishment. 

Article 11 

Enforcement 

Member States shall lay down the rules on penalties applicable to  infringements  of 
the  provisions  adopted  pursuant  to  this  Regulation  and  shall  take  all  measures 
necessary to ensure that  they are implemented. The penalties provided for must be 
effective, proportionate and dissuasive. Member States shall notify these provisions 
to  the  Commission by  31  December  2023  at  the  latest  and  shall  notify  it  without 
delay of any subsequent amendment affecting them. 

Member  States  shall  ensure  that  any  aircraft  operator  failing  to  comply  with  the 
obligations laid down in Article 5 is liable to an administrative fine. That fine shall 
be at least twice as high as the multiplication of the yearly average price of aviation 
fuel per tonne and of the total yearly non-tanked quantity;  

Member States shall ensure that any aviation fuel supplier failing to comply with the 
obligations  laid  down  in  Article  4  relative  to  the  minimum  share  of  sustainable 
aviation  fuels  is  liable to an administrative fine. That  fine shall be at  least  twice as 
high  as  the  multiplication  of  the  difference  between  the  yearly  average  price  of 
conventional aviation fuel and sustainable aviation fuel per tonne and of the quantity 

16 

Commission  Regulation  (EC)  No  748/2009  of  5  August  2009  on  the  list  of  aircraft  operators  which 
performed an aviation activity listed in Annex I to Directive 2003/87/EC  

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(4) 

(5) 

(6) 

(7) 

of aviation fuels not complying with the minimum share referred to in Article 4 and 
Annex I; 

Member States shall ensure that any aviation fuel supplier failing to comply with the 
obligations laid down in Article 4 relative to the minimum share of synthetic aviation 
fuels is liable to an administrative fine. That fine shall be at least twice as high as the 
multiplication  of  the  difference  between  the  yearly  average  price  of  synthetic 
aviation  fuel  and  conventional  aviation  fuel  per  tonne  and  of  the  quantity  of  the 
aviation  fuel  not  complying  with  the  minimum  share  referred  to  in  Article  4  and 
Annex I; 

In the decision imposing the administrative fines referred to in paragraphs 3 and 4, 
the competent authority shall explain the methodology applied for the determination 
of the price of aviation fuel, sustainable aviation fuel and synthetic aviation fuel on 
the Union market, based on verifiable and objective criteria; 

Member States shall ensure that any aviation fuel supplier which has accumulated a 
shortfall from the obligation laid down in Article 4 relative to the minimum share of 
sustainable  aviation  fuels  or  of  synthetic  fuels  in  a  given  reporting  period,  shall 
supply  the  market  in  the  subsequent  reporting  period  with  a  quantity  of  that 
respective fuel equal to that shortfall, additional to their reporting period obligation. 
Fulfilling this obligation shall not exonerate the fuel supplier from the obligation to 
pay the penalties laid out in paragraphs 3 and 4 of this Article; 

Member States shall have the necessary legal and administrative framework in place 
at national level to ensure the fulfilment of the obligations and the collection of the 
administrative fines. Member States shall transfer the amount collected through those 
administrative  fines  as  contribution  to  the  InvestEU  Green  Transition  Investment 
Facility, as a top-up to the EU guarantee. 

Article 12 

Data collection and publication 

The  Agency  shall  publish  every  year  a  technical  report  on  the  basis  of  the  yearly  reports 
referred to in Articles 7 and 9. That report shall contain at least the following information: 

(a)  The  amount  of  sustainable  aviation  fuel  purchased  by  aircraft  operators  at 
Union level in aggregate, for use on flights departing from a Union airport, and 
by Union airport;  

(b)  The amount of sustainable aviation fuel and of synthetic aviation fuel supplied 

at Union level in aggregate and by Union airport; 

(c)  The state of the market, including price information, and trends in sustainable 

aviation fuel production and use in the Union;  

(d)  The status of compliance of airports regarding obligations set out in Article 6; 

(e)  The  compliance  status  of  each  aircraft  operator  and  aviation  fuel  supplier 

having an obligation under this Regulation in the reporting period; 

(f)  The origin and the characteristics of all sustainable aviation fuels purchased by 

aircraft operators for use on flights departing from Union airports. 

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Article 13 

Transitional period 

By way of derogation from Article 4, from 1 January 2025 until 31 December 2029, for each 
reporting  period,  an  aviation  fuel  supplier  may  supply  the  minimum  share  of  sustainable 
aviation fuel defined in  Annex I as a weighted average over all the aviation fuel it supplied 
across Union airports for that reporting period. 

Article 14 

Reports and Review 

By 1 January 2028 and  every five  years thereafter, the Commission  services shall present  a 
report  to  the  European  Parliament  and  the  Council,  on  the  evolution  of  the  aviation  fuels 
market  and  its  impact  on  the  aviation  internal  market  of  the  Union,  including  regarding  the 
possible extension of the scope of this Regulation to other energy sources, and other types of 
synthetic  fuels  defined  under  the  Renewable  Energy  Directive,  the  possible  revision  of  the 
minimum  shares  in  Article  4  and  Annex  I,  and  the  level  of  administrative  fines.  The  report 
shall include  information, where available, on development  of  a potential  policy framework 
for  uptake  of  sustainable  aviation  fuels  at  ICAO  level.  The  report  shall  also  inform  on 
technological  advancements  in  the  area  of  research  and  innovation  in  the  aviation  industry 
which  are  relevant  to  sustainable  aviation  fuels,  including  with  regards  to  the  reduction  of 
non-CO2  emissions.    The  report  may  consider  if  this  Regulation  should  be  amended  and, 
options  for  amendments,  where  appropriate,  in  line  with  a  potential  policy  framework  on 
sustainable aviation fuels uptake at ICAO level. 

Article 15 

Entry into force  

This Regulation shall enter into force on the day twentieth following that of its publication in 
the Official Journal of the European Union. 
It shall apply from 1st January 2023. 

However, Article 4 and 5 shall apply from 1 January 2025 and Articles 7 and Article 9 shall 
apply from 1st April 2024 for the reporting period of the year 2023. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 'AGENCIES' 

Contents 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 4 

Title of the proposal/initiative ...................................................................................... 4 

Policy area(s) concerned .............................................................................................. 4 

The proposal relates to ................................................................................................. 4 

Objective(s) .................................................................................................................. 4 

1.4.1.  General objective(s) ..................................................................................................... 4 

1.4.2.  Specific objective(s) ..................................................................................................... 4 

1.4.3.  Expected result(s) and impact ...................................................................................... 5 

1.4.4. 

Indicators of performance ............................................................................................ 5 

1.5. 

Grounds for the proposal/initiative .............................................................................. 5 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of 
the implementation of the initiative ............................................................................. 5 

1.5.2.  Added value of Union involvement (it may result from different factors, e.g. coordination 
gains, legal certainty, greater effectiveness or complementarities). For the purposes of this 
point 'added value of Union involvement' is the value resulting from Union intervention which 
is additional to the value that would have been otherwise created by Member States alone.
 ...................................................................................................................................... 5 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 6 

1.5.4.  Compatibility with the Multiannual Financial Framework and possible synergies with other 

appropriate instruments ................................................................................................ 6 

1.5.5.  Assessment of the different available financing options, including scope for redeployment

 ...................................................................................................................................... 6 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration and financial impact of the proposal/initiative ............................................. 7 

Management mode(s) planned ..................................................................................... 7 

MANAGEMENT MEASURES .................................................................................. 8 

Monitoring and reporting rules .................................................................................... 8 

Management and control system(s) ............................................................................. 8 

Justification of the management mode(s), the funding implementation mechanism(s), the 
payment modalities and the control strategy proposed ................................................ 8 

Information concerning the risks identified and the internal control system(s) set up to mitigate 
them .............................................................................................................................. 8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ 

value of the related funds managed"), and assessment of the expected levels of risk of error (at 
payment & at closure) .................................................................................................. 8 

2.3. 

Measures to prevent fraud and irregularities ................................................................ 9 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE .............. 9 

Heading(s) of the multiannual financial framework and expenditure budget line(s) affected
 ...................................................................................................................................... 9 

3.2. 

Estimated impact on expenditure ............................................................................... 10 

3.2.1.  Summary of estimated impact on expenditure ........................................................... 10 

3.2.2.  Estimated impact on [body]'s appropriations ............................................................. 12 

3.2.3.  Estimated impact on [body]'s human resources ......................................................... 13 

3.2.4.  Compatibility with the current multiannual financial framework ............................. 17 

3.2.5.  Third-party contributions ........................................................................................... 17 

3.3. 

Estimated impact on revenue ..................................................................................... 18 

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LEGISLATIVE FINANCIAL STATEMENT 'AGENCIES' 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal for a Regulation on ensuring a level playing field for sustainable air transport 

1.2. 

Policy area(s) concerned 

Mobility and Transport 

1.3. 

The proposal relates to  

 a new action  

 a new action following a pilot project/preparatory action17  

 the extension of an existing action  

 a merger of one or more actions towards another/a new action  

1.4. 

Objective(s) 

1.4.1.  General objective(s)  

The general objective is to lay down harmonised rules to maintain a competitive level playing 
field on the Union aviation internal market, while increasing the uptake of sustainable aviation 
fuels from 2025. 

1.4.2. 

Specific objective(s)  

Specific objective No 1 

Ensure  that  air  transport  internal  market  players  can  compete  on  the  basis  of  equal 
opportunities when operating from Union airports, as regards the uptake of aviation fuels. 

Specific objective No 2 

Ensure  that  airlines  have  access  to  increasing  shares  of  sustainable  aviation  fuels  when 
operating from Union airports from 2025, while not being subject to competitive distortions. 

17 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

This  Regulation  is  expected  to  strengthen  the  level  playing  field  in  the  EU  aviation  internal 
market among aircraft operators and airports, including with non-EU air transport actors. 

This Regulation is expected to lead to a gradual decarbonisation of the air transport sector in 
the  EU,  while  maintaining  high  levels  of  competitiveness  of  the  industry  and  high  levels  of 
connectivity within, to and from the EU. 

1.4.4. 

 Indicators of performance  

Specify the indicators for monitoring progress and achievements. 

The effectiveness of the proposed Regulation, with respect to the specific objective No1, will 
be  determined  based  on  the  evolution  of  the  status  of  the  air  transport  and  aviation  fuels 
markets, as well as the amounts of aviation fuels reported by aircraft operators as uplifted at 
Union airports, and compared to the amounts of aviation fuel needed by such airports over the 
course of a reporting period of one year, as from 2024. 

The effectiveness of the proposed Regulation, with respect to the specific objective No2, will 
be  determined  based  on  the  amounts  of  sustainable  aviation  fuels  reported  by  aircraft 
operators,  as  well  as  the  amounts  of  sustainable  aviation  fuels  reported  by  aviation  fuel 
suppliers, compared to the minimum shares determined in the proposed Regulation, over the 
course of a reporting period of one year, as from 2024. 

1.5. 

 Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of 

the implementation of the initiative 

Aircraft  operators  will  be  required  from  1  January  2025  to  report  amounts  of  aviation  fuel 
uplifted at a given airport corresponding to at least 90% of their total aviation fuel required for 
flights departing from that airport, over the course of a one year reporting period. 

Aviation fuel  suppliers  will be required from 1  January 2025 to  ensure that  all aviation  fuel 
made available to aircraft operators at Union airports contains a minimum share of sustainable 
aviation fuel, including a minimum share of synthetic fuel. 

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g.  coordination 
gains,  legal  certainty,  greater  effectiveness  or  complementarities).  For  the  purposes  of  this 
point 'added value of Union involvement' is the value resulting from Union intervention which 
is additional to the value that would have been otherwise created by Member States alone. 

Reasons for action at European level ex-ante and ex-post: 

Air transport is a matter of high EU relevance, since it is a highly integrated market operating 
in a network dimension across the whole of the EU and beyond. The cross-border dimension is 
inherent  to  air  transport,  which  makes  any  fragmented  regulatory  framework  a  significant 
hurdle for air transport economic actors.  

An  intervention  at  EU  level  is  necessary,  as  the  competitiveness  of  the EU  aviation  internal 
market as a whole cannot be addressed adequately at national level. An EU-level intervention 
is necessary in particular to avoid a patchwork of national measures with possible unintended 
effects. Whereas the objective of the proposed Regulation is to restore a level playing field in 
the  air  transport  market,  different  levels  of  obligations  per  Member  State  could  have  the 

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opposite  effect  and  distort  further  the  aviation  market,  encouraging  adverse  practices  by 
aircraft operators such as fuel tankering.  

Finally, when it comes to imposing an obligation on the supply of sustainable aviation fuels, 
EU-level action with harmonised aviation-specific rules applying directly to market actors is 
expected  to  be  more  effective  than  national  measures  setting  different  requirements  and 
targets.  

1.5.3.  Lessons learned from similar experiences in the past 

In the past, aviation has been covered with overarching targets for renewable energy under the 
Renewable Energy Directive. This has not produced any benefits for the air transport sector, as 
air transport is a relatively small market where fuels are more costly to produce than for other 
transport modes. It is therefore necessary to establish aviation-specific rules whereby aviation 
is  subject  to  dedicated  targets  when  it  comes  to  fuel  use  and  supply.  In  particular,  the 
Renewable Energy Directive did not cater for provisions ensuring a level playing field in the 
air  transport  market.  As  a  consequence,  Member  States  considered  establishing  renewable 
energy  objectives  for  air  transport  with  varying  quantitative  targets  and  sustainability 
requirements.  This  would  have  created  a  patchwork  of  national  measures  and  caused 
distortions  in  the  air  transport  market,  thereby  putting  EU  aircraft  operators  as  well  as  EU 
airports at competitive disadvantage with respective non-EU market players. 

The chosen approach learns from past experience by establishing clear and harmonised rules 
at EU level, in order to cater for a level playing field while increasing the share of renewable 
energy in the air transport market. 

1.5.4. 

 Compatibility with the Multiannual Financial Framework and possible synergies with other 
appropriate instruments 

The proposed Regulation is a key deliverable of the Communication from the Commission on 
a Sustainable and Smart Mobility Strategy,  which sets out a course of action to improve the 
functioning of the EU internal transport market, and sets the objective to boost the uptake of 
sustainable aviation fuels. 

The proposed Regulation will create synergies with other pieces of EU regulatory framework, 
notably the EU ETS Directive and Directive (EU) 2018/2001 on renewable energy. 

1.5.5. 

 Assessment of the different available financing options, including scope for redeployment 

The large majority of the budgetary implications of this proposal are dealt with under the legal 
financial statement of the Proposal for a Regulation establishing and alternative aviation fuels. 
The specific budgetary impact of this initiative is limited to the resources necessary for EASA 
to fulfil its additional mandate. In the impact assessment different options have been assessed 
to  meet  the  general  objective  to  lay  down  harmonised  rules  to  maintain  a  competitive  level 
playing field on the Union aviation internal market, while increasing the uptake of sustainable 
aviation fuels from 2025. The preferred option is the most cost efficient approach.  

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1.6. 

Duration and financial impact of the proposal/initiative 

 limited duration  

–    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial impact from 2022 to 2050 

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned18  

 Direct management by the Commission through 

–    executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

 international organisations and their agencies (to be specified); 

the EIB and the European Investment Fund; 

 bodies referred to in Articles 70 and 71; 

 public law bodies; 

 bodies governed by private law with a public service mission to the extent that they provide 
adequate financial guarantees; 

  bodies  governed  by  the  private  law  of  a  Member  State  that  are  entrusted  with  the 
implementation of a public-private partnership and that provide adequate financial guarantees; 

  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP  pursuant  to 
Title V of the TEU, and identified in the relevant basic act. 

Comments 

Management  of  the  proposed  Regulation  will  be  done  overall  by  the  Commission  services. 
However, important obligations reporting will be carried out by the European Union Aviation 
Safety Agency. 

Member States will be required to carry out the enforcement of the Regulation by determining 
the  amount  of  an  applying  administrative  fines  to  economic  operators  at  breach  with  their 
obligations pursuant to the proposed Regulation. 

18 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

On  a  yearly  basis,  starting  in  2024  to  cover  the  previous  year,  aircraft  operators  will  be 
required  to  report  a  series  of  data  on  their  aviation  fuel  uplift  at  Union  airports,  to  the 
European Union Aviation Safety Agency.  

Similarly, on a yearly basis, starting in 2024 to cover the previous year, aviation fuel suppliers 
will be required to report a series of data on their supply of aviation fuel at Union airports, to 
the European Union Aviation Safety Agency. 

The European Union Aviation Safety Agency will be required to provide this data, aggregated 
at EU level for each economic operator, to the competent national authorities. 

On  a  yearly  basis,  starting  in  2025,  the  European  Union  Aviation  Safety  Agency  will  be 
required  to  publish  a  technical  report  containing  information  relative  to  the  compliance  of 
economic operators with their respective obligations, on the amount of aviation fuel, including 
sustainable  aviation  fuels,  uplifted  by  aircraft  operators  and  supplied  by  aviation  fuel 
suppliers, as well as information on the status of the air transport and aviation fuels markets, 
and other information on aviation fuels. 

At  least  every  five  years  following  entryinto  force  of  the  proposed  Regulation,  the 
Commission  will  be  required  to  report  to  the  European  Parliament  and  the  Council  on  the 
implementation  of the proposed Regulation.  This  report will notably provide information  on 
the  status  of  the  EU  aviation  internal  market  and  the  aviation  fuels  market,  as  well  as 
developments  on  the  policy  framework  at  the  International  Civil  Aviation  Organisation  on 
related matters. 

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  management  mode(s),  the  funding  implementation  mechanism(s),  the 
payment modalities and the control strategy proposed 

While the Commission will be overall accountable for implementing the proposed Regulation 
as  well  as  for  reporting  to  the  European  Parliament  and  the  Council  on  its  efficiency  and 
proposing a revisions where necessary, the European Union Aviation Safety Agency will be 
required  to  carry  out  reporting  and  assessment  of  compliance  with  the  economic  operators’ 
obligations, and the Member States will be required to carry out enforcement. 

The  European  Union  Aviation  Safety  Agency  is  best  placed  to  carry  out  reporting  and 
assessment  of  compliance  tasks,  as  this  will  be  technical  work,  requiring  strong  expertise  in 
data  management,  as  well  as  in-depth  understanding  of  complex  technical  matters  related  to 
aircraft refuelling (in particular safety requirements) and sustainable aviation fuels. 

Member  States  are  best  placed  to  carry  out  the  enforcement  of  the  proposed  Regulation, 
notably by  applying administrative fines in  cases of non-compliance by aircraft operators of 
aviation fuel suppliers. This is expected to be done in consistency with cases such as the EU 
ETS Directive, where Member States are responsible for carrying-out enforcement in the same 
way. 

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2.2.2. 

Information  concerning  the  risks  identified  and  the  internal  control  system(s)  set  up  to 
mitigate them 

The main policy risks related to the initiative are as follows : 

1) Risk of loss of competitiveness of the air transport market or loss of air connectivity. This 
risk  could  arise  if  aircraft  operators  operating  at  EU  airports  would  incur  strong  increased 
costs  due  to  the  introduction  of  sustainable  aviation  fuels,  that  undermine  their  ability  to 
operate and remain competitive in the air transport market.  This could lead to a reduction of 
routes  operated  and  a  loss  of  connectivity  within,  to  or  from  the  EU.  Such  a  risk  has  low 
likelihood  and  is  mitigated  by  several  factors.  First,  the  minimum  shares  of  sustainable 
aviation  fuel  are  gradual  and  low  at  the  start,  ensuring  that  the  overall  aviation  fuel  price 
increase will be minimal. Second, safeguards are proposed to  ensure that all airlines have to 
uplift  such  aviation  fuel,  thereby  avoiding  differences  of  treatment  between  operators  and 
competitive distortions. 

2)  Risk  that  the  minimum  shares  of  sustainable  aviation  fuels  would  not  be  adapted  to  the 
status of the market. This risk could materialise notably if the minimum shares of sustainable 
to be supplied to the aviation market would be too high, and could not be met by the industry, 
for  reasons  linked  to  feedstock  shortages  or  lack  of  production  capacity.  This  risk  is  well 
identified  and  mitigated  by  several  factors.  In  particular,  the  minimum  shares  have  been 
closely  vetted  within  the  Commission  in  the  context  of  the  2030  Climate  Target  Plan 
economic  analysis,  as  well  as  during  consultations  with  the  industry,  which  provided 
assurance  on  their  adequacy  given  the  likely  evolution  of  the  market.  Should  the  minimum 
shares become obsolete, the proposed Regulation includes reporting and review mechanisms 
that will allow to update the minimum shares in line with the evolution of the market. 

From an internal control point of view, the key risks are:  

3/ A lack of reliable or sufficient data. Such a risk would compromise the ability to assess the 
effectiveness  of  the  proposed  Regulation  and  would  make  it  difficult  to  determine  what 
features should be revised to improve its effectiveness and when relevant. Mitigating his risk 
requires airlines and fuel suppliers to provide robust and detailed data. Mitigation of this risk 
requires  to  request  airlines  and  fuel  suppliers  to  forward  this  data  to  EASA.  Appropriate 
mitigation of this risk can only be ensured if EASA is required to play a key role in order to 
analyse  and  process  the  data,  to  ensure  effective  monitoring  of  the  proposed  Regulation’s 
efficiency. To this end, EASA needs to be provided with adequate resources to establish and 
operate  the  IT  infrastructure  needed,  as  well  as  to  conduct  several  regular  capacity  building 
activities such as workshops and seminars, gathering fuel suppliers and airlines, to inform and 
train them on the reporting requirements.   

4/  Absence  of  sufficient  capacities  to  manage  the  data.  Such  a  risk  could  compromise  the 
ability  to  determine  compliance  of  the  economic  operators  (e.g.  aircarft  operators  or  fuel 
suppliers) with their obligations as laid down in the proposed Regulation. This would impact 
the effectiveness of the policy tool and undermine its ability to meet its objectives. This  risk 
can  be  appropriately  addressed  if  EASA  is  allocated  the  necessary  resources,  in  particular 
human resources,  to  collect  the data, process  it, and to  conduct  activities such as workshops 
and  seminars  for  the  purpose  of  capacity  building  on  reporting  requirements  with  fuel 
suppliers  and airlines.  

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5/ Absence of uniform enforcement.Such a risk could occur if enforcement by Member States, 
notably through administrative fines, is not consistent or not performed in a uniform way. This 
could undermine the implementation of the proposed Regualation and impact the level playing 
field on the air transport and fuels markets. While the proposed Regulation contains detailed 
provisions  on  the  application  of  penalties  by  Member  States,  this  risk  can  only  be 
appropriately mititgated if EASA is granted with the appropriate resources to have the correct 
data at its disposal to request Member States to carry out sound enforcement. This necessitates 
financial and human resources as referred in points 3 and 4 above. 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control costs ÷ 
value of the related funds managed"), and assessment of the expected levels of risk of error (at 
payment & at closure)  

Under  the  proposed  Regulation,  additional  financing  will  be  provided  only  to  EASA,  which 
will  be  required  to  carry  out  reporting  and  assessment  of  compliance  with  the  economic 
operators’ obligations. 

The cost of  control  associated with EASA was  estimated as 0.6% of the  payments  for 2020  
and this ratio is not expected to change after the adoption of the proposed Regulation.  

EASA  has  full  responsibility  for  the  implementation  of  their  budget,  while  DG  MOVE  is 
responsible  for  the  regular  payment  of  the  contributions  established  by  the  Budgetary 
Authority. The working  arrangements with  EASA have been clarified by a Memorandum  of 
Understanding. The current estimated level of error is 0%, with regards to the budget subsidies 
provided to the Decentralized Agencies supervised by DG MOVE. 

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2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

The proposed Regulation contains several provisions specifically targetted at preventing fraud 
and  irregularities,  in  line  with  the  DG  MOVE  antifraud  strategy.  Namely,  the  proposed 
Regulation  references  dedicated  provisions  of  Directive  (EU)  2018/2001  and  the  EU  ETS 
Directive, which ensure that data submitted by economic operators are required to be checked 
by  independent  verifiers.  The  proposed  Regulation  contains  clear  and  detailed  rules  on  the 
legal enforcement to ensure that the obligations it contains are not circumvented by economic 
operators. The  Commission  will ensure that appropriate measures are in  place to protect the 
financial  interests  of  the  Union,  inter  alia  by  the  application  of  preventive  measures  against 
fraud,  corruption  and  any  other  illegal  activities;  by  effective  checks  and,  if  irregularities, 
fraud or breach of obligations are detected, by the recovery of the amounts unduly paid. 

In  particular,  DG  MOVE  maintains  a  specific  Anti-Fraud  Strategy  and  Action  Plan  that 
enumerates  the  specific  controls  applied  within  the  DG,  including  awareness  actions  and 
trainings.  DG  MOVE’s  antifraud  strategy  is  based  on  the  Commission  Antifraud  Strategy 
adopted in 2019 and its implementation is coordinated with DG OLAF and the Commission’s 
internal anti-fraud network. 

The  proposed  Regulation  will  contain  other  specific  measures  to  prevent  and  address  fraud 
and irregularities. In particular, the Regulation will contain standard provisions (recommended 
by  OLAF)  on  protecting  the  EU’s  financial  interests,  to  ensure  that  audits  and  on-the-spot 
checks can be carried out by the Commission services, including OLAF. 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework 

Number  

Type of  
expenditure 

Diff./Non-
diff.19 

Contribution  

from 
EFTA 
countries
20 

from 
candidate 
countries21 

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

02.10.01 EASA  

Diff 

YES 

YES/ 

YES 

NO 

  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

19 
20 
21 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

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Heading of 
multiannual 
financial 
framework 

Number  

[XX.YY.YY.YY] 

Budget line 

Type of 
expenditure 

Contribution  

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

YES/NO  YES/NO  YES/NO 

YES/NO 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

Number  Heading1A  

EUR million (to three decimal places) 

EASA 

Title 1: 

Title 2: 

Title 3: 

TOTAL appropriations 
for EASA 

Year 
N2022 

Year 
N 2023 

1.820 

2.280 

1.820 

2.280 

Year 
N2024-
2050) 

8.775 

8.775 

1.820 

2.280 

1.820 

2.280 

8.775 

8.775 

TOTAL 

12.875 

12.875 

12.875 

12.875 

Commitments 

Payments 

Commitments 

Payments 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

(3a) 

(3b) 

=1+1a 
+3a 

=2+2a 

+3b 

The budgetary impact of the additional financial resources for the European Aviation Safety Agency will be covered by redeployment from 
other budget lines managed by DG MOVE. 

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Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

EUR million (to three decimal places) 

DG: <…….> 

 Human Resources  
 Other administrative expenditure  

TOTAL DG <…….> 

Appropriations  

TOTAL appropriations 
under HEADING 7 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

TOTAL appropriations  
under HEADINGS 1 to 7 
of the multiannual financial framework  

Commitments 

Payments 

Year 
N2022
22 

Year 
N 2023 

1.820 

2.280 

1.820 

2.280 

Year 
N 
2024-
2050 

8.775 

8.775 

TOTAL 

12.875 

12.875 

EUR million (to three decimal places) 

22 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The 
same for the following years. 

EN 

26 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated impact on EASA's appropriations  

–   The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below: 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type23 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 124… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTAL COST 

23 
24 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’ 

EN 

27 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on EASA's human resources  

3.2.3.1.  Summary  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
N 202225 

Year 
N 2023 

Year 
N 2024-
2050 

TOTAL 

0.155 

0.345 

9.325 

9.825 

0.050 

0.067 

3.007 

3.124 

Temporary agents (AD 
Grades) 

Temporary 
(AST grades) 

agents 

Contract staff 

Seconded National 
Experts 

TOTAL 

0.205 

0.412 

12.332 

12.949 

Staff requirements (FTE): 

Year 
N 202226 

Year 
N2023 

Year 
2024-
2050 

TOTAL 

0.9 

0.45 

2 

0.6 

3 

1 

5.9 

2.05 

Temporary agents (AD 
Grades) 

Temporary 
(AST grades) 

agents 

Contract staff 

Seconded National 
Experts 

25 

26 

Year  N  is  the  year  in  which  implementation  of  the  proposal/initiative  starts.  Please  replace  "N"  by  the 
expected first year of implementation (for instance: 2021). The same for the following years. 
Year  N  is  the  year  in  which  implementation  of  the  proposal/initiative  starts.  Please  replace  "N"  by  the 
expected first year of implementation (for instance: 2021). The same for the following years. 

EN 

28 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
TOTAL 

1.35 

2.6 

4 

7.95 

EN 

29 

  EN 

 
3.2.3.2.  Estimated requirements of human resources for the parent DG 

–   The proposal/initiative does not require the use of human resources.  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the 
duration of the impact (see 
point 1.6) 

 Establishment plan posts (officials and 

temporary staff) 

20 01 02 01 and 20 01 02 02 
(Headquarters and Commission’s 
Representation Offices) 

20 01 02 03 (Delegations) 

01 01 01 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent 

unit: FTE)27 

20 02 01 (AC, END, INT from the 
‘global envelope’) 

20 02 03 (AC, AL, END, INT and 
JPD in the Delegations) 

Budget 
line(s) 
(specify) 
28 

- at 
Headquarters29 

- in 
Delegations  

01 01 01 02 (AC, END, INT – 
Indirect research) 

10 01 05 02 (AC, END, INT – 
Direct research) 

Other budget lines (specify) 

TOTAL 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 

27 

28 
29 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JPD = 
Junior Professionals in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 
Mainly  for  the  EU  Cohesion  Policy  Funds,  the  European  Agricultural  Fund  for  Rural  Development 
(EAFRD) and the European Maritime Fisheries and Aquaculture Fund (EMFAF).   

EN 

30 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

Description  of  the  calculation  of  cost  for  FTE  units  should  be  included  in  the  Annex  V, 
section 3.  

EN 

31 

  EN 

 
 
 
 
3.2.4.  Compatibility with the current multiannual financial framework  

–    The  proposal/initiative  is  compatible  the  current  multiannual  financial 

framework. 

–    The proposal/initiative will entail reprogramming of the relevant heading in the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

n.a. 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework30. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

n.a  

3.2.5.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties.  

–  The proposal/initiative provides for the co-financing estimated below: 

EUR million (to three decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL 
co-financed  

appropriations 

30 

See  Articles  12  and  13  of  Council  Regulation  (EU,  Euratom)  No  2093/2020  of  17  December  2020 
laying down the multiannual financial framework for the years 2021 to 2027. 

EN 

32 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

 

 

on own resources  

on other revenue  

         please indicate, if the revenue is assigned to expenditure lines  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative31 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

n.a  

Specify the method for calculating the impact on revenue. 

n.a  

31 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20 % for collection costs. 

EN 

33 

  EN