Archive · 7 Nov 2025
India to Soon Release Sustainable Aviation Fuel Policy with Blending Targets
India is getting ready to launch a new plan for a special airplane fuel called Sustainable Aviation Fuel, or SAF.
This fuel is made from things like plants and used cooking oil, and it's much better for the air we breathe.
The government wants to start mixing a small amount of this SAF into the regular jet fuel that planes use.
They want to add 1% by the year 2027, then 2% by 2028, and reach 5% by 2030.
They believe this will help India buy less oil from other countries, make farmers more money, and create lots of new jobs.
It's also good for the planet because it can cut down pollution from planes by a lot!
The government is asking businesses to share their ideas before the final plan is made.
Even big airplane companies like Airbus are suggesting ways to help make SAF production happen, like using money companies already set aside for helping society.
India is set to release a draft Sustainable Aviation Fuel (SAF) policy soon for industry consultation, aiming for 1% blending by 2027, 2% by 2028, and 5% by 2030.
The policy is anticipated to reduce crude oil import bills by $5-7 billion annually and create over 1 million green jobs.
SAF production could potentially increase farmers' incomes by 10-15%, utilizing India's vast biomass and agricultural residue resources.
Airbus India suggested integrating corporate spending on voluntary SAF programs under the government's Corporate Social Responsibility (CSR) framework.
SAF has the capability to reduce lifecycle emissions by up to 80%, offering a scalable solution for aviation decarbonization.
- Who
- Union Civil Aviation Minister Ram Mohan Naidu, Airbus India chief Jurgen Westermeier, Federation of Indian Chambers of Commerce & Industry (FICCI), KPMG
- What
- Announcement of an upcoming Sustainable Aviation Fuel (SAF) policy for industry consultation, with specific blending targets and a discussion on SAF production potential and integration with CSR.
- When
- The policy is expected 'very soon'. Blending targets are set for 2027, 2028, and 2030. The announcements were made on Thursday.
- Where
- India
- Why
- To promote SAF adoption, reduce crude oil import bills, increase farmers' incomes, create green jobs, decarbonize aviation, and leverage India's potential for SAF production.
Government's Push for SAF Adoption
Industry Concerns on SAF Mandates
SAF Policy Implementation
Government's Push for SAF Adoption
Union Civil Aviation Minister Ram Mohan Naidu announced that India will soon release a Sustainable Aviation Fuel (SAF) policy for industry consultation, with targets of 1% blending by 2027, 2% by 2028, and 5% by 2030. He emphasized the policy's potential benefits including increasing farmers' incomes by 10-15%, reducing crude oil import bills by $5-7 billion annually, and creating over 1 million green jobs. The minister also encouraged private players to join oil companies in SAF production and suggested integrating corporate spending on voluntary SAF programs under CSR initiatives.
Industry Concerns on SAF Mandates
While no direct opposing view from an organization was explicitly stated in this article, the mention of integrating corporate spending under CSR suggests a potential mechanism to offset costs. The broader context often involves airlines and industry bodies cautioning about the financial implications of mandates without sufficient incentives, as seen in previous summaries.
SAF Production and Raw Materials
Government's Push for SAF Adoption
Minister Naidu highlighted India's significant potential for SAF production, citing over 750 million tonnes of available biomass and nearly 213 million tonnes of surplus agricultural residue. A FICCI and KPMG report further detailed India's raw material availability, including over 680 million tonnes of agricultural residue, 3.4 million tonnes of used cooking oil, and ethanol capacity exceeding 1,800 crore litres.
Industry Concerns on SAF Mandates
No specific opposing view on raw material availability was presented. The focus is on harnessing these resources for SAF production.
- SAF Blending Targets
- 1% by 2027, 2% by 2028, 5% by 2030
- Potential Farmer Income Increase
- 10-15%
- Potential Green Job Creation
- Over 1 million
- Potential Reduction in Crude Oil Imports
- $5-7 billion annually
- SAF Lifecycle Emission Reduction
- Up to 80%
- Projected Global SAF Demand by 2040
- 183 million tonnes
- India's Aviation Market Projection
- Third-largest globally by 2030
- Available Biomass in India
- Over 750 million tonnes
Sources
Green aviation fuel: Airbus seeks CSR status for SAF investment
Centre to soon roll out Sustainable Aviation Fuel draft policy: Minister Naidu
Government to soon announce sustainable aviation fuel policy: Civil Aviation Minister
India To Become Global Leader In Sustainable Aviation Fuel: Report
Sustainable Aviation Fuel Policy Soon; IATA Says Blending Mandate 'Without Incentive' Would Hurt
