Unlocking investments in SAF: Leveraging financial Instruments to drive SAF bankability
The transition to sustainable fuels is critical for achieving net-zero targets, especially in aviation when we talk about SAF. However, despite growing demand and some technological advancements, large-scale SAF initiatives still struggle to secure the necessary investments. Our global study on the SAF has identified key economic challenges hindering project bankability, including price volatility, regulatory uncertainty, and inadequate financial incentives. We will present an overview where EU financial instruments can be useful for bankability, and where the other can be possible to establish. We will show a new, internally developed ideas of hedging opportunities with a combination of EU funding mechanism as a part of a new fund designed to integrate also with ReFuelEU, the Industrial Act, ETS penalties, and other existing frameworks. This model aims to channel compliance-based revenues into sustainable investments, creating a self-reinforcing cycle to accelerate SAF deployment.