Raw: [
The governments of Germany, Austria and Luxembourg announced the launch of a new electricity-based Sustainable […]]
Germany, Austria, Luxembourg Commit Over €2 Billion to Back Development of eSAF Market – ESG Today
ESG Investing, sustainable finance & business sustainability news
LinkeIn
ESG investing news, analysis, research and information
Top Stories ESG News
Companies
Government
Investors
Regulators
Sustainable Finance
ESG Solutions ESG Tools, Services
Companies Companies
Investors Investors
ESG Disclosure ESG Reporting
Analysis
Regulators
Reports, Studies
Newsfeed
Resources
Events
About About us
Our Team
Advertise With Us
Energy Transition/ Government
Germany, Austria, Luxembourg Commit Over €2 Billion to Back Development of eSAF Market
Mark Segal
September 25, 2026
The governments of Germany, Austria and Luxembourg announced the launch of a new electricity-based Sustainable Aviation Fuel (eSAF) funding scheme, which will see the countries working together to introduce a new auction mechanism aimed at bringing together buyers and sellers of eSAF backed by public funding, in order to help facilitate investment into new production facilities.
As part of the new initiative, Germany will provide up to €2 billion, and Austria and Luxembourg will each provide up to €60 million, to help bridge the price gap between buyers and sellers.
Fuel accounts for the vast majority of the aviation sector’s emissions. Generally produced from sustainable resources, like waste oils and agricultural residues, sustainable aviation fuel (SAF) is seen as one of the key tools to help decarbonize the aviation industry in the near- to medium-term. According to a recent report by the International Air Transport Association (IATA), however, while SAF production nearly doubled in 2025, it still accounted for just 0.6% of airlines’ total fuel consumption. Efforts to meaningfully increase the production of SAF face barriers including high initial costs and feedstock challenges.
eSAF, also known as power-to-liquid fuel, is produced from renewable hydrogen, produced by electrolysis using renewable electricity, and carbon providing an avenue to help address the industry’s feedstock challenges.
The industrial production of eSAF, however, requires substantial investment, with potential developers facing a structural problem, in which producers require long-term off-take agreements to secure investment decisions, while buyers typically enter into aviation fuel contracts covering significantly shorter timeframes.
Under the new double-sided auction mechanism, bids from eSAF producers and demand from buyers will be determined through a competitive bidding process, with the price gap between the two sides bridged using government subsidies.
Germany, Austria and Luxembourg are among the founding members of the eSAF Early Movers’ Coalition, which was launched in December 2025, with the aim of accelerating the market ramp-up of eSAF in Europe through cooperation, exchange of experience and joint financial support.The subsidized volumes of eSAF from the new program are to be placed on the market in each of the three countries in proportion to their respective share of contributed funding.
Steffen Bilger, Germany’s Federal Minister of Transport, said:
“When it comes to eSAF, Europe needs not only ambitious targets but also investment in industrial production. Germany, Austria and Luxembourg are jointly demonstrating how European cooperation works in practice. We are pooling our funding to create better conditions for investment decisions in a technology of the future.”
Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.
Related Posts
Energy Transition /
Microsoft, PepsiCo Join Largest-Ever U.S. Electric Truck Order from Tesla
Government /
Canada Looks to Enter International Carbon Market
Energy Transition /
Germany Releases Roadmap to End Use of Fossil Fuels by 2045
‹ Canada Looks to Enter International Carbon Market
ESG Today Newsletter
Daily climate, sustainable finance & policy coverage
✓ Subscribed!
✉ SUBSCRIBE
Free daily · Unsubscribe anytime
Sustainable Finance
New York Raises $319 Million in Inaugural ESG Bond Offering
BlueOrchard Raises $250 Million for Emerging Markets Climate Finance Fund
Santander Surpasses 85% of 2030 Green Finance Goal
BlackRock’s Skyborn Renewables Secures Over $2.4 Billion for Major German Offshore Windfarm
Government
Germany, Austria, Luxembourg Commit Over €2 Billion to Back Development of eSAF Market
Canada Looks to Enter International Carbon Market
Germany Releases Roadmap to End Use of Fossil Fuels by 2045
Beyond Greenwashing: Navigating the EU Directive on Green Claims
Categories
Select Category
Companies
Energy Transition
Environment
ESG Reporting
ESG Tools, Services
Executive Moves
Governance
Government
Guest Posts
Investors
M&A
New funds & products
Platforms & Markets
Private Equity & Venture Capital
Professional bodies
Regulators
Reports, Studies
Social
Social & Governance
Sustainable Finance
Back to Top
LinkeIn
Home
About us
Disclosure, cookies & privacy policy
© ESG Today 2026
ESG Today Newsletter
Daily coverage of climate, sustainable finance and policy —
delivered straight to your inbox every morning.
Get the Newsletter
ESG Today Newsletter
Daily coverage of climate, sustainable finance and policy —
delivered straight to your inbox every morning.
Get the Newsletter
Cookie ConsentWe value your privacy. We use cookies to improve your experience on our site. By using our site, you consent to cookies.
PreferencesRejectAccept AllCookie Preferences×Manage your cookie preferences below:
Toggle EssentialEssentialEssential cookies enable basic functions and are necessary for the proper function of the website.NameDescriptionDurationGeolocation ConfigThis cookie is used to store the consent settings based on the visitor’s location.30 daysCookie PreferencesThis cookie is used to store the user’s cookie consent preferences.30 daysToggle CloudFlareCloudFlareCloudFlare provides web performance and security solutions, enhancing site speed and protecting against threats.Service URL: developers.cloudflare.com (opens in a new window)NameDescriptionDurationcf_ob_infoThe cf_ob_info cookie provides information on: The HTTP Status Code returned by the origin web server. The Ray ID of the original failed request. The data center serving the trafficsession__cfseqSequence rules uses cookies to track the order of requests a user has made and the time between requests and makes them available via Cloudflare Rules. This allows you to write rules that match valid or invalid sequences. The specific cookies used to validate sequences are called sequence cookies.sessioncf_chl_rc_iThese cookies are for internal use which allows Cloudflare to identify production issues on clients.sessioncf_clearanceWhether a CAPTCHA or Javascript challenge has been solved.session_cfuvidThe _cfuvid cookie is only set when a site uses this option in a Rate Limiting Rule, and is only used to allow the Cloudflare WAF to distinguish individual users who share the same IP address.session__cflbWhen enabling session affinity with Cloudflare Load Balancer, Cloudflare sets a __cflb cookie with a unique value on the first response to the requesting client. Cloudflare routes future requests to the same origin, optimizing network resource usage. In the event of a failover, Cloudflare sets a new __cflb cookie to direct future requests to the failover pool.session__cf_bmCloudflare’s bot products identify and mitigate automated traffic to protect your site from bad bots. Cloudflare places the __cf_bm cookie on End User devices that access Customer sites that are protected by Bot Management or Bot Fight Mode. The __cf_bm cookie is necessary for the proper functioning of these bot solutions.session__cfruidUsed by the content network, Cloudflare, to identify trusted web traffic.sessioncf_chl_rc_mThese cookies are for internal use which allows Cloudflare to identify production issues on clients.sessioncf_chl_rc_niThese cookies are for internal use which allows Cloudflare to identify production issues on clients.session__cfwaitingroomThe __cfwaitingroom cookie is only used to track visitors that access a waiting room enabled host and path combination for a zone. Visitors using a browser that does not accept cookies cannot visit the host and path combination while the waiting room is active.sessioncf_use_obThe cf_use_ob cookie informs Cloudflare to fetch the requested resource from the Always Online cache on the designated port. Applicable values are: 0, 80, and 443. The cf_ob_info and cf_use_ob cookies are persistent cookies that expire after 30 seconds.sessionToggle CommentsCommentsThese cookies are needed for adding comments on this website.NameDescriptionDurationcomment_author_urlUsed to track the user across multiple sessions.Sessioncomment_author_emailUsed to track the user across multiple sessions.Sessioncomment_authorUsed to track the user across multiple sessions.SessionToggle Google Tag ManagerGoogle Tag ManagerGoogle Tag Manager simplifies the management of marketing tags on your website without code changes.NameDescriptionDurationtdRegisters statistical data on users’ behaviour on the website. Used for internal analytics by the website operator.sessioncookiePreferencesRegisters cookie preferences of a user2 yearsToggle StatisticsStatisticsStatistics cookies collect information anonymously. This information helps us understand how visitors use our website.Toggle Google AnalyticsGoogle AnalyticsGoogle Analytics is a powerful tool that tracks and analyzes website traffic for informed marketing decisions.Service URL: policies.google.com (opens in a new window)NameDescriptionDuration_gac_Contains information related to marketing campaigns of the user. These are shared with Google AdWords / Google Ads when the Google Ads and Google Analytics accounts are linked together.90 days__utmaID used to identify users and sessions2 years after last activity__utmtUsed to monitor number of Google Analytics server requests10 minutes__utmbUsed to distinguish new sessions and visits. This cookie is set when the GA.js javascript library is loaded and there is no existing __utmb cookie. The cookie is updated every time data is sent to the Google Analytics server.30 minutes after last activity__utmcUsed only with old Urchin versions of Google Analytics and not with GA.js. Was used to distinguish between new sessions and visits at the end of a session.End of session (browser)__utmzContains information about the traffic source or campaign that directed user to the website. The cookie is set when the GA.js javascript is loaded and updated when data is sent to the Google Anaytics server6 months after last activity__utmvContains custom information set by the web developer via the _setCustomVar method in Google Analytics. This cookie is updated every time new data is sent to the Google Analytics server.2 years after last activity__utmxUsed to determine whether a user is included in an A / B or Multivariate test.18 months_gaID used to identify users2 years_galiUsed by Google Analytics to determine which links on a page are being clicked30 seconds_ga_ID used to identify users2 years_gidID used to identify users for 24 hours after last activity24 hours_gatUsed to monitor number of Google Analytics server requests when using Google Tag Manager1 minuteToggle Cookie PolicyCookie PolicyYou can find more information in our Terms of Service, Cookies and Privacy Policy and Privacy Policy.Accept AllCloseSave and Close
Never miss the latest breaking ESG investment news. Get ESG Today’s newsletter today!
Subscribe Now
c
×
ESG Today Newsletter
Daily coverage of climate, sustainable finance and policy — delivered straight to your inbox.
Email Address *
First Name
Last Name
Level
Select…C-LevelSVP / EVPDirector / VPManager / SupervisorMid or Entry LevelFreelance / ContractStudent / InternRetiredOther
Function
Select…Accounting & FinanceBusiness Development & SalesCustomer SupportFacilitiesHR & TalentLegalMarketing & CommunicationsOperationsProcurement & ContractingR & DStrategySupply Chain & DistributionSustainabilityTechnologyInvestingOther
✉ Get the Newsletter
Free daily newsletter · Unsubscribe anytime