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  4. Are you up to speed on the ReFuelEU SAF mandate?

Are you up to speed on the ReFuelEU SAF mandate?

Release date:
August 2024
From 1 January 2025, aviation fuel suppliers, are required to ensure that the supply of aviation fuel at in scope EU airports (Union airports) contain a minimum of 2% SAF.
 

What is the ReFuelEU Aviation initiative and what does it mean for you?

 

Part of the European Commission’s ‘Fit for 55’ package to meet the emissions reduction target of 55% by 2030 compared to 1990 levels, the RefuelEU Aviation initiative was approved in October 2023.

 

It mandates that from 2025 onwards, a proportion of the fuel supplied at EU airports must be SAF. Starting with a 2% share of SAF from 2025, this proportion is set to gradually increase to 70% from 2050.

 

More than 95% of air transport departing from EU airports will be covered by this new regulation. The successful implementation of ReFuelEU Aviation requires the collaboration of all parties in the supply chain, including aviation fuel suppliers such as Air bp, EU airports and airlines.

 

 

Who does this affect?

 

ReFuelEU affects “in scope” aircraft operators and owners operating within the EU and refuelling at in scope “Union” airports, regardless of where they originate from. Air bp’s in scope customers refuelling at in scope locations will be charged a mandate compliance fee.

 

 

How do you know if you are an in scope customer?

 

An in scope customer is defined as an aircraft operator or owner that has flown at least 500 commercial passenger air transport flights, or 52 commercial all-cargo air transport flights departing from Union airports in the previous reporting period. For example, in scope customers for the reporting period 2024 will be identified based on 2023 data.

 

A list of probable in scope aircraft operators has been provided by the EU and can be reviewed here.

 

 

What is a Union airport?

 

A Union airport is defined by the European Parliament and of the Council, as an airport where passenger traffic was higher than 800,000 passengers or where the freight traffic was higher than 100,000 tonnes in the previous reporting period, and that is not situated in an outermost region. 

 

You can see the current list of Union airports in scope of ReFuelEU Aviation for the reporting period 2024 here.

 

 

How will business and general aviation customers be affected?

 

  • If you meet the criteria as an in scope customer, then you will be charged the mandate compliance fee, regardless of the size of aircraft or where you originate from. 
  • If you are a private flyer, or an airline/ operator not flying over 500 flights or 52 all cargo flights from a Union airport (in one calendar year) then you are NOT in scope and therefore will not be charged the mandate compliance fee. 
  • If you are not in scope, you need to ensure that you don’t become in scope during the relevant reporting period, as just one flight could make you in scope.  
  • It is the responsibility of each aircraft operator/ owner to independently assess whether they are in scope of the regulation and to take the appropriate action. 

 

 

What that means as an Air bp customer?

 

From 1 January 2025, aviation fuel suppliers including Air bp, are required to ensure that their supply of aviation fuel at in scope Union airports contains a minimum of 2% SAF. In line with this mandate from January 2025 Air bp will automatically apply a ReFuelEU or SAF Mandate fee on all aviation fuel purchases to customers identified as in scope. 

 

To ensure we do this correctly, Air bp has contacted all customers it believes to be in scope to inform them of this charge. If they are not in scope, customers must complete an “out of scope” declaration before the 15 October, so we can update our records accordingly.

 

 

What if you’re unsure as to whether you’re in scope or out of scope?

 

If in doubt about whether you are in scope or not, or you believe Air bp has incorrectly recorded you as being in scope or out of scope, then please complete the declaration form provided, and contact your account manager for more information and support.

 

* Please note however, it is the responsibility of each customer to independently assess whether they are in scope of the regulation or not. 

 

 

How much will the mandate fee cost customers?

 

Air bp is currently awaiting further directives from the EC and is working to compile all the relevant information to share with our customers. Once we have this information in place we will share details on pricing, regulatory compliance, and the locations where Sustainable Aviation Fuel (SAF) will be available.

 

Once the details have been finalised, the mandate fee will be delivered to customers as a taxes and fee notification.

 

 

Why is ReFuelEU important?

 

It is widely acknowledged that SAF is key to decarbonising aviation. According to the European Union Aviation Safety Agency (EASA), the EU is the first region in the world to establish a regulatory framework that will help the production of SAF and the delivery of SAF to airlines. It will therefore also create a market that will increase SAF volumes.