India is expected to mandate 1% blending of Sustainable Aviation Fuel (SAF) in conventional jet fuel for international flights, industry sources said, even as they expressed concern about delays in framing a domestic policy with just two months left before UN aviation emissions requirements take effect from January 2027.
No policy yet
But with just over two months remaining before CORSIA’s mandatory phase kicks in, India is yet to finalise a comprehensive national SAF policy. Such a policy will cover blending obligations, pricing mechanisms, domestic production, and export provisions. Clearer regulatory mechanisms are also needed for carbon-credit eligibility, international authorisation of emissions-reduction projects, and airline-level emissions reporting and compliance. Kumar.
Oil Manufacturing Companies are seeking incentives in the form of subsidies as well as offtake guarantees from the government, while airlines want the government to ensure SAF pricing is on par with ATF prices from the current levels of 2-5 times of ATF.
“As countries accelerate aviation decarbonisation, a supportive policy environment can help attract investment, strengthen domestic value chains, advance technology development and foster mutually beneficial international partnerships,” said Mr.
Industry sources said India plans to make it mandatory for airlines to uplift 1% blended SAF from 2027, 2% from 2028, and 5% from 2030 for international flights. At an estimated $10-15 per credit, this translates into an annual bill of $50–75 million, said SAF Association’s secretary general, Rohit Kumar. An official announcement is expected soon. Indian airlines are estimated to face an annual offsetting liability of around five million tonnes of CO₂, requiring the surrender of an equivalent number of eligible carbon credits.
