The European Parliament approved the update of the compensation mechanism for CO2 emissions in the EU yesterday. The system provides for the use of the proceeds deriving from the recognition of 20 million permits, to compensate the air carriers that will use sustainable fuels. Approval by individual member countries is now required, expected at the end of April, before it becomes law.

There are two billion Euros on the plate which can be used to facilitate the transition from kerosene to Sustainable Aviation Fuel (SAF). This money can be requested by companies in the period 2024-2030, to cover the large price difference that exists today between traditional kerosene (developed from fossil fuels) and biofuels (food, agricultural waste, waste).

To decarbonise the aviation sector, Brussels is also developing binding targets to increase the use of sustainable fuels by airlines. Also because, as part of the reforms of the carbon offsetting market, the European Union will stop granting free permits to companies from 2026, which means that airlines will have to buy permits (94 Euros per ton of CO2).