India to mandate 1% SAF blending for international flights from January

India plans to mandate Sustainable Aviation Fuel in blended fuel used for international flights. The requirement is intended to reduce aviation emissions and help Indian airlines comply with CORSIA, the global emissions-reduction scheme. It would also create demand for domestic SAF production and related supply chains.

The planned schedule starts at 1% in 2027. It rises to 2% in 2028 and 5% in 2030. The requirement would apply to fuel uplifted by airlines, rather than requiring aircraft to operate entirely on SAF. An official announcement is expected soon.

The timing is tight. CORSIA’s mandatory phase begins in 2027, but India has not finalised a comprehensive SAF policy. That policy must address blending, prices, production, exports, carbon-credit rules, emissions reporting, and compliance. The targets could encourage investment, but airlines and fuel producers want clearer rules and financial support.

Sustainable Aviation Fuel, or SAF, is an alternative fuel for aircraft designed to produce lower overall emissions than conventional jet fuel. The article does not provide a technical definition, but it identifies used cooking oil, agricultural residues, and other sustainable feedstocks as possible sources. SAF can be blended with conventional aviation fuel.

The practical difference is its source and emissions profile. Conventional jet fuel is fossil-based. SAF can be produced through pathways such as co-processing used cooking oil or developing alcohol-to-jet technology. India’s Panipat facility is preparing both approaches to support future supply.

SAF matters because airlines need ways to reduce emissions while continuing international air services. However, the article highlights major barriers. SAF currently costs two to five times as much as ATF, and producers want incentives and guaranteed purchases. Airlines want prices closer to conventional fuel and dependable access to sustainable feedstocks.

India’s possible SAF production is much larger than its immediate target. An ICAO feasibility study estimates potential output at 14 million tonnes to 33 million tonnes under a higher estimate. The range depends on the feedstocks and production pathways assessed. This suggests India could become a significant SAF producer if investment and policy support arrive.

For 2027, India is preparing 30,000 tonnes of capacity to meet the planned 1% blending target. The capacity is at Indian Oil’s Panipat Refinery. The plant already co-processes used cooking oil with conventional fuel and is developing an alcohol-to-jet unit to expand green aviation fuel production.

The gap between potential and near-term capacity is substantial. India still needs a national SAF policy covering production, prices, exports, and blending obligations. Oil companies are seeking subsidies and government offtake guarantees. Clear rules could help turn the country’s feedstock potential into operating production and future exports.

CORSIA stands for the Carbon Offsetting and Reduction Scheme for International Aviation. ICAO adopted it in 2016 to address emissions from international flights. Under the scheme, airlines must keep emissions below 85% of their 2019 levels using Sustainable Aviation Fuel or eligible carbon credits. It is being introduced in stages.

The first two phases, from 2021 through 2026, are voluntary. The third phase is mandatory from 2027 to 2035 and covers international flights between ICAO member states. Indian carriers will therefore need systems for emissions measurement, reporting, compliance, and fuel or credit procurement.

India plans to support compliance through mandatory SAF blending: 1% in 2027, 2% in 2028, and 5% in 2030. Airlines may also need to surrender eligible credits. India has not yet completed its national policy, leaving uncertainty over credit eligibility, project authorisation, reporting rules, and implementation details.

The new requirements will create both financial and operational work for Indian airlines. They must arrange SAF supplies or eligible carbon credits, track emissions, report results, and comply with CORSIA rules. These tasks become mandatory as the scheme’s third phase begins in 2027.

Industry estimates put Indian airlines’ annual offsetting liability at around five million tonnes of CO₂. Airlines would need to surrender an equivalent number of eligible carbon credits. At an estimated $10–15 per credit, the annual cost could reach $50–75 million. This is separate from the challenge of buying higher-priced SAF.

Air India is expected to account for a significant share because it operates many long-haul and ultra-long-haul international flights. Its operations must also reflect SAF mandates in foreign markets. The European Union, United Kingdom, and Singapore already have requirements affecting flights departing their airports, adding complexity to route planning and fuel procurement.

SAF policy is difficult because the fuel is costly, supplies are uncertain, and airlines face several overlapping compliance systems. Oil companies want subsidies and government offtake guarantees to make production investable. Airlines want SAF prices brought closer to ATF, since current prices are reportedly two to five times higher.

Feedstock access is another pressure point. India hopes to use used cooking oil, agricultural residues, and other sustainable materials. It also wants to become a production and export hub. Europe, however, is already facing stronger competition for limited waste-based feedstocks, especially used cooking oil, as its SAF requirements increase.

Carbon credits add another layer. Airlines may need credits for CORSIA obligations, but India still needs rules on eligibility, project authorisation, reporting, and compliance. Without a complete policy, investment and supply decisions remain uncertain. Clear rules could support domestic production, exports, technology, and international partnerships.

International flights produce carbon emissions because aircraft use fuel to power their engines. Conventional jet fuel releases carbon dioxide during flight. The article focuses on reducing this impact through SAF and eligible carbon credits under CORSIA, rather than ending international air travel.

Changing the fuel can lower aviation’s emissions profile when SAF replaces part of conventional jet fuel. India plans blended SAF targets of 1% in 2027, 2% in 2028, and 5% in 2030. Where emissions remain, airlines can use eligible carbon credits. CORSIA requires emissions from covered international flights to stay below 85% of 2019 levels.

This approach depends on credible measurement and verification. India needs rules for carbon-credit eligibility, international authorisation of emissions-reduction projects, airline reporting, and compliance. The scheme therefore combines cleaner fuel with market-based measures, while policy quality determines whether the reductions are reliable and scalable.