The Indian government is set to announce a draft policy on Sustainable Aviation Fuel (SAF), aimed at promoting environmentally friendly aviation practices. Union Minister Ram Mohan Naidu stated that the ministry is actively consulting with stakeholders to develop a comprehensive SAF policy that will be launched shortly.
SAF, which includes renewable and waste-derived aviation fuels, is recognized for its potential to significantly lower lifecycle emissions. India is targeting a blending of 1% SAF in jet fuel by 2027, increasing to 2% in 2028, and reaching 5% by 2030. This initiative is part of the country’s broader effort to reduce carbon emissions and support sustainable growth in the aviation sector.
Market Potential and Resource Base
India’s rapidly expanding aviation market, currently ranked fifth globally and expected to become third by 2030, presents a significant opportunity for SAF adoption. The country possesses abundant biomass resources, including over 750 million tonnes of biomass and nearly 213 million tonnes of surplus agricultural residue, which can be utilized for SAF production. This approach could enhance farmers’ incomes, reduce crude oil imports by billions annually, and create over one million green jobs.
"India has the raw materials and capacity to scale SAF production, which could play a vital role in decarbonizing aviation,"
Naidu explained. The country also has ethanol capacity exceeding 1,800 crore liters, further supporting SAF development.
Industry stakeholders, notably Airbus India, have proposed integrating corporate spending on SAF initiatives into India’s CSR framework to encourage voluntary investment. The use of SAF could result in up to 80% reduction in lifecycle emissions, making it an essential component of India’s climate mitigation strategy.
Overall, the government’s push for SAF aligns with India’s ambitions to lead the global green aviation industry, leveraging its natural resource advantage and burgeoning market needs.
