The global market for sustainable aviation fuel (SAF) is witnessing rapid growth, driven by regulatory policies and rising demand from the aviation industry to reduce greenhouse gas emissions. Countries across Europe are setting ambitious SAF blend mandates, aiming for a 2% target by 2025, escalating to 6% by 2030, with plans for even higher levels in subsequent decades. The United Kingdom has announced a 10% SAF blend goal by 2030, along with a future power-to-liquid mandate starting in 2028. In Asia, Singapore is emerging as a prominent SAF trading hub, with Japan aiming for 10% SAF adoption for international flights by 2030, and China investing heavily in feedstock development and early pilot projects.
In the United States, policy incentives such as the Inflation Reduction Act have incentivized SAF production with credits of up to $1.75 per gallon. Several projects to expand capacity are underway, and airlines have secured long-term offtake agreements, positioning the US as a leading contributor to global SAF supply growth. Latin America's progress is led by Brazil, which enacted the 'Future of Fuel' law in late 2024. This law mandates a gradual reduction in aviation sector GHG emissions, with volumetric SAF mandates increasing from 1.5% in 2027 to 15% by 2037, depending on feedstock utilization.
Argus plays a crucial role in supporting this market development by providing trusted SAF benchmarks globally. These include prices for the U.S. Gulf Coast, Europe, as well as import parity prices for Latin America, facilitated by Argus' ICE-linked SAF prices. The transparency provided by these benchmarks helps market participants manage risks and make informed investment and compliance decisions. Overall, the industry is moving toward more stringent policies and increased production capacity, fostering the transition to greener aviation fuels.
