Lufthansa will spend $250 million on SAF fuel over the next three years

Lufthansa said Wednesday it will spend $250 million to buy sustainable aviation fuel, or SAF, over the next three years.

“The Lufthansa Group is already the largest purchaser of sustainable aviation fuel in Europe and, with this decision, confirms its claim to be among the world’s leading airline groups regarding the use of SAF,” the German carrier said.

The decision comes after the European Union earlier this year proposed measures that would compel carriers to increase their use of the still-scarce and more-expensive fuels. Under the broader climate plan published by the bloc during the summer, which still needs final approval, airlines will have to blend at least 2% of sustainable aviation fuel into their conventional jet fuel starting in 2025, with the proportion rising to 5% in 2030 and 63% in 2050.

Aviation is a hard-to-decarbonize sector and will also be discussed during the U.N. climate summit known as COP26, which began Sunday. marketwatch.com