FantasticSearch

1. By 1 January 2027, and every four years thereafter, the Commission shall present a report to the European Parliament and to the Council, on the application of this Regulation.

2. The report shall contain a detailed assessment of the evolution of the aviation fuels market, and the impact of that evolution on the functioning of the aviation internal market of the Union including on the competitiveness and connectivity, in particular for islands and remote territories, and on the cost-effectiveness of lifecycle emissions reductions. The report shall also assess the need for investments, employment and training, and research and innovation in SAF. In addition, the report shall inform on technological advancements in the area of research and innovation in the aviation industry which are relevant to SAF, including with regards to the reduction of non-CO2 emissions or direct air capture technologies.

3. The report shall evaluate the possible need to revise the scope of this Regulation, the SAF definition, the eligible fuels and the minimum shares in Article 4 and Annex I, and the level of fines. The report shall evaluate the possible widening of the scope of this Regulation to include other energy sources and other types of synthetic fuels defined in Directive (EU) 2018/2001, while taking due account of the principle of technological neutrality. The report shall also assess initiatives, improvements and additional measures to further facilitate and promote an increased supply and uptake of non-drop-in aviation fuels, and related services, infrastructure and technologies consistent with the objective of decarbonising air transport while preserving a level playing field.

4. The report shall consider the possible inclusion of mechanisms to support the production and uplift of SAF, including the collection and use of funds, and to limit the adverse impact of this Regulation on connectivity and competitiveness. The report shall consider whether such mechanisms should include financial and other mechanisms to bridge the price differences between SAF and conventional aviation fuels.

5. The report shall assess the impact on the functioning of the aviation internal market of the exemptions granted under Article 5. As far as possible, the report shall include information on the policy developments in relevant third countries, including in the context of their multilateral and bilateral agreements with the Union or with the Union and its Member States, as well as on the development of a potential policy framework for supply and uplift of SAF at ICAO level.

The report shall assess the competitiveness of Union air carriers and airport hubs compared with their competitors in relevant third countries, as well as possible rerouting, notably through a shift in traffic towards airport hubs in third countries, leading to carbon leakage. In particular, in the absence of a mandatory scheme at international level on the use of SAF for international flights with a similar level of ambition as the requirements laid down in this Regulation or of mechanisms developed at international level enabling the risk of carbon leakage and the distortion of competition for international aviation to be avoided, the Commission shall, by 31 December 2026, where appropriate, consider targeted mechanisms that aim to prevent those effects, including, if appropriate, the extension to international aviation of the carbon border adjustment mechanism established by Regulation (EU) 2023/956 of the European Parliament and of the Council (), as well as other types of measures taking into account the fact that the final destination of the flight is located outside the territory of the Union.

6. The report shall include detailed information on the enforcement of this Regulation. The report shall consider whether this Regulation should be amended and, where appropriate, which amendments should be considered, in line with a potential policy framework on SAF uptake at ICAO level. As part of the first report or earlier as a stand alone report presented to the European Parliament and to the Council, the Commission shall assess possible measures to optimise the fuel content of aviation fuels.

7. The Commission may consult Member States when drawing up that report, at least six months before its adoption.