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

Industry sources said India plans to make it mandatory for airlines to raise 1% blended SAF from 2027. File | Photo credit: MURALI KUMAR K

India is expected to mandate 1% blending of sustainable aviation fuel (SAF) into conventional jet fuel for international flights, industry sources said, even as they expressed concern over delays in domestic policy-making, with just two months to go before UN aviation emissions requirements come into effect from January 2027.

CORSIA, or the Carbon Offsetting and Reduction Scheme for International Aviation, is a global plan to reduce carbon emissions from international flights. Adopted by the International Civil Aviation Organization (ICAO) in 2016, CORSIA requires airlines to keep emissions from international flights below 85% of 2019 levels using SAFs or eligible carbon credits.

CORSIA is being implemented in three phases. These include two voluntary phases between 2021 and 2026 and a third mandatory phase between 2027 and 2035, covering all international flights between ICAO member states.

Industry sources said India plans to make it mandatory for airlines to increase the blended SAF by 1% from 2027, 2% from 2028 and 5% from 2030 for international flights. An official announcement is expected soon.

It is estimated that Indian airlines will face an annual offset liability of approximately five million tonnes of CO₂, requiring the surrender of an equivalent number of eligible carbon credits. At an estimated $10-15 per credit, this translates to an annual bill of $50-75 million, said SAF Association general secretary Rohit Kumar.

Air India is expected to bear a significant share of this responsibility given its extensive international long-haul and ultra-long-haul operations.

No policy yet

But with just over two months to go before the mandatory phase of CORSIA begins, India has yet to finalize a comprehensive national SAF policy. Such policy will cover blending obligations, pricing mechanisms, domestic production and export provisions. Clearer regulatory mechanisms are also needed for carbon credit eligibility, international approval of emission reduction projects, and emissions reporting and compliance at the airline level.

“As countries accelerate the decarbonisation of aviation, a supportive policy environment can help attract investment, strengthen domestic value chains, accelerate technology development and foster mutually beneficial international partnerships,” Kumar said.

The industry is seeking an export permit for SAF as India seeks to become a global manufacturing and export hub, leveraging its potential access to used cooking oil, agricultural residues and other sustainable raw materials. The ambition comes as Europe faces increasing competition for limited supplies of waste-based feedstocks, including used cooking oil, to meet its growing SAF blending requirements.

An ICAO feasibility study estimates India’s potential SAF production at 14 million tonnes to 33 million tonnes based on assessed raw materials and routes. It is currently set up for a capacity of 30,000 tonnes to meet the 2027 1% blending target at Indian Oil’s Panipat refinery. The plant co-processes used cooking oil (UCO) with conventional fuel and is developing an alcohol-to-jet (ATJ) unit to produce green jet fuel.

Oil companies are seeking incentives in the form of subsidies and offtake guarantees from the government, while airlines want the government to ensure that SAF prices are at par with ATF prices from the current levels of 2-5 times ATF.

Several international markets have already implemented SAF blending mandates that affect Indian airlines operating flights from their airports. For example, the European Union has mandated a 2% SAF share of jet fuel supplied to EU covered airports from 2025, rising to 6% by 2030.

The UK has also set a mandate starting at 2% in 2025 and increasing to 10% by 2030. Under these regimes, Indian carriers such as Air India must include the requirements in their operations when departing from relevant airports. Singapore has also implemented a target of 1% SAF funded through a mandatory departure charge from 1 January 2027.

(With inputs from Saptaparno Ghosh)

Published – 21 Oct 2026 20:44 IST