The European Commission has given its nod to a €36 million (DKK 268 million) Danish State aid scheme, marking a significant stride towards decarbonizing the aviation sector by fostering the adoption of Sustainable Aviation Fuel (SAF) for domestic flights.
In a landmark decision, the European Commission has approved a substantial €36 million (approximately DKK 268 million) Danish State aid scheme designed to dramatically cut greenhouse gas emissions within the nation's domestic aviation sector. This ambitious program seeks to achieve its environmental objectives by promoting the use of Sustainable Aviation Fuel (SAF) for all domestic flights. This is not merely another aid scheme; it represents the very first such initiative approved by the Commission that specifically champions the widespread adoption of SAF.
The Danish scheme, slated to run until December 31, 2027, is meticulously crafted to incentivize airlines operating within Denmark to transition to SAF on their domestic routes. A key objective of this initiative is to ensure that at least one domestic air route operates using a minimum of 40% SAF, a figure remarkably close to the current technical limit of 50%.
Under the framework of this progressive scheme, the financial assistance will be disbursed as monthly direct grants. These grants are specifically earmarked to cover the additional costs incurred by airlines when utilizing SAF as opposed to conventional kerosene. This comprehensive coverage also extends to supplementary expenses related to airport infrastructure adaptations necessary for handling and supplying SAF. To ensure fiscal responsibility and maximize the impact of the aid, the level of support will be determined through a competitive bidding process. This mechanism is designed to guarantee both cost-effectiveness and efficiency in the allocation of funds. The program is projected to support a minimum of 20 commercial sustainable one-way operations on a weekly basis, spread across one or more domestic routes within Denmark.
To prevent any instances of overcompensation, the scheme incorporates stringent rules. These include the explicit exclusion of supported SAF from any parallel support measures under the ReFuelEU Aviation regulation and the EU Emissions Trading System (ETS) directive. Furthermore, the scheme strictly prohibits the use of SAF that has previously received subsidies from Denmark, other EU Member States, or any third countries, ensuring that the aid contributes genuinely new reductions in emissions.
Denmark, for its part, has committed to ensuring that the aid will result in overall CO2 reductions and will not merely lead to a displacement of emissions from one sector to another.
This approval highlights the continued evolution of the 2022 CEEAG, which provides vital guidance on how the Commission assesses the compatibility of environmental protection, climate protection, and energy aid measures that fall under the notification requirement of Article 107(3)(c) TFEU. These Guidelines establish a flexible and fit-for-purpose enabling framework, designed to empower Member States in providing the essential support needed to achieve European Green Deal in a targeted and cost-effective manner.
