Chinese aviation regulators are moving forward with new standards designed to improve the transparency and traceability of used cooking oil in the supply chain for sustainable aviation fuel (SAF). The proposed regulations aim to address concerns over fraud and illegality by implementing digital tools such as satellite tracking and tamper-proof logs to monitor each batch of waste oil from collection to refinery. This development is seen as a strategic effort to support China's goal of scaling SAF production, which is largely derived from waste oil, and to meet international emissions targets.
China currently operates six SAF refineries with a combined capacity of approximately two million tonnes annually, with ambitions to expand to four million tonnes by 2030. These efforts are part of a broader strategy to reduce transportation-related greenhouse gases, as SAF can produce up to 80% less carbon emissions compared to conventional jet fuels. The new standards are expected to enhance the integrity of the supply chain, encouraging industry professionalization and possibly fostering consolidation among smaller operators.
Implications for the Industry
Experts highlight that establishing clear, verifiable data at the source is crucial for international recognition and market competitiveness. The standards, if recognized by global frameworks like ICAO’s CORSIA, could enable Chinese SAF to be more attractive to international buyers, including hubs like Singapore. Singapore, which hosts significant SAF facilities such as Neste's refinery capable of producing one million tonnes annually, remains a key player due to its strategic position in the renewable jet fuel market.
While the regulations might pose challenges to smaller and informal collection operations—potentially requiring significant investments in digital systems—industry analysts believe this will lead to a more mature and reliable SAF industry. Ultimately, the move signals China's increasing commitment to building a sustainable aviation sector aligned with global climate goals and could reshape regional dynamics in green fuel deployment.
