TotalEnergies Chief Predicts European Union Will Weaken Sustainable Aviation Fuel Mandate

Patrick Pouyanne patrick pouyanne, the chief executive of TotalEnergies SE TTE, announced at the World Economic Forum that he expects the EU EU to water down its mandates for sustainable aviation fuel (SAF). He pointed to the recent decision by the EUto drop a proposed ban on new combustion-engine cars from 2035 as a clear indicator of a potential regulatory retreat. This expectation of a shift in policy comes as energy companies face significant hurdles in the transition toward lower-carbon alternatives.

The current regulatory framework in the EUrequires that 2% of jet fuel at its airports must be sustainable aviation fuel, with that requirement scheduled to rise to 6% in 2030 and 20% by 2035. However, Patrick Pouyannerevealed that TotalEnergies SEhas already delayed investments intended to increase its production capacity. He explained that airline companies are refusing to purchase any volumes of the fuel beyond what is strictly required to satisfy EUrules, largely because the sustainable alternative is three to four times more expensive than traditional jet fuel refined from Crude Oil WTI CLUSD.