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Industry sources indicate that India is poised to mandate a 1% blending of Sustainable Aviation Fuel (SAF) in conventional jet fuel for international flights. This move comes amid industry concerns regarding the slow progress in establishing a domestic policy framework, with only two months remaining before the United Nations' aviation emissions requirements become effective in January 2027.
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is the global framework designed to curb carbon emissions from international aviation. Adopted by the International Civil Aviation Organization (ICAO) in 2016, CORSIA mandates that airlines maintain international flight emissions below 85% of their 2019 levels, utilizing either SAF or certified carbon credits to bridge the gap.
CORSIA implementation follows a three-phase timeline: two voluntary phases spanning 2021 to 2026, followed by a mandatory third phase from 2027 to 2035 that covers all international routes between ICAO member states. According to industry insiders, India’s roadmap includes a 1% mandatory SAF uplift for international flights starting in 2027, rising to 2% in 2028 and reaching 5% by 2030. An official government announcement is anticipated shortly.
Indian carriers are projected to face an annual offsetting liability of approximately five million tonnes of CO₂, necessitating the acquisition of an equivalent volume of carbon credits. Rohit Kumar, Secretary General of the SAF Association, estimated this could result in an annual expenditure of $50–75 million, based on a credit price of $10-15. Air India is expected to bear the brunt of these costs due to its extensive long-haul international network.
Despite the fast-approaching deadline, India has yet to finalize a comprehensive national SAF policy. This essential regulatory framework must address blending mandates, pricing structures, domestic production incentives, and export guidelines. Clearer rules are also required for carbon-credit eligibility and emissions reporting compliance. Mr. Kumar emphasized that a supportive policy environment is crucial for attracting investment and strengthening domestic value chains.
The industry is also advocating for export permissions, as India aims to become a global hub for SAF production by leveraging its vast resources of used cooking oil (UCO) and agricultural residues. This strategic ambition coincides with rising competition in Europe for waste-based feedstocks. An ICAO study estimates India’s potential SAF production capacity at between 14 million and 33 million tonnes. Currently, Indian Oil’s Panipat Refinery is preparing a 30,000-tonne capacity to meet the initial 1% target, utilizing UCO co-processing and developing alcohol-to-jet technology.
While oil manufacturing companies are seeking government subsidies and offtake guarantees, airlines are calling for price parity between SAF and conventional aviation turbine fuel (ATF). Currently, SAF prices remain significantly higher, often 2 to 5 times the cost of ATF. Several global markets, including the EU, UK, and Singapore, have already introduced similar mandates that will impact Indian carriers operating from their airports starting as early as 2025.
Source: The Hindu