The Sampadak Express News Desk
India is expected to mandate a 1% blend of Sustainable Aviation Fuel (SAF) in conventional jet fuel for international flights from 2027, with higher targets to follow, industry sources told The Hindu. The move would align with the start of the mandatory phase of the UN-backed aviation emissions scheme CORSIA in January 2027, even as airlines and fuel suppliers flag the absence of a comprehensive domestic policy framework.
According to the sources, the plan would require airlines to uplift 1% blended SAF from 2027, rising to 2% in 2028 and 5% in 2030 for international operations. An official announcement is expected soon.
CORSIA, the Carbon Offsetting and Reduction Scheme for International Aviation adopted by the International Civil Aviation Organization in 2016, obliges airlines to keep emissions from international flights below 85% of 2019 levels through the use of SAF or eligible carbon credits. The scheme is being implemented in two voluntary phases between 2021 and 2026, followed by a mandatory phase from 2027 to 2035 covering international flights between ICAO member states.
Indian carriers are estimated to face an annual offsetting liability of about five million tonnes of CO2, requiring the surrender of an equivalent number of carbon credits. At an assumed cost of $10–15 per credit, this could amount to an annual bill of $50–75 million, according to SAF Association secretary general Rohit Kumar. Air India is expected to shoulder a significant portion of this exposure due to its extensive long-haul and ultra-long-haul international services.
With just over two months remaining before CORSIA’s mandatory phase begins, the industry says India is yet to finalise a national SAF policy. Stakeholders are seeking clarity on blending obligations, pricing mechanisms, domestic production and export provisions, as well as regulatory processes governing carbon-credit eligibility, international authorisation of emissions-reduction projects, and airline-level emissions reporting and compliance.
“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,” Mr. Kumar said.
The sector is urging the government to permit SAF exports as India aims to build a global production and export hub, drawing on feedstocks such as used cooking oil and agricultural residues. This push coincides with intensifying competition in Europe for limited supplies of waste-based feedstocks to meet rising SAF blending mandates.
An ICAO feasibility study estimates India’s potential SAF production between 14 million tonnes and 33 million tonnes, based on assessed feedstocks and technological pathways. Current domestic readiness stands at about 30,000 tonnes of capacity for the 2027 1% target, centred on Indian Oil’s Panipat Refinery, which co-processes used cooking oil with conventional fuel and is developing an alcohol-to-jet unit to scale green aviation fuel output.
Oil Marketing Companies are seeking government support in the form of subsidies and offtake guarantees to underpin investments, while airlines want pricing parity between SAF and aviation turbine fuel (ATF). At present, SAF is estimated to cost two to five times as much as ATF, heightening concerns about cost pass-throughs in the absence of policy support.
Indian airlines already face SAF requirements when operating from jurisdictions with blending mandates. The European Union has introduced a 2% SAF share in aviation fuel supplied at covered EU airports from 2025, increasing to 6% by 2030, while the United Kingdom has set a 2% mandate in 2025 rising to 10% by 2030. Singapore will implement a 1% SAF target funded by a mandatory levy on departing flights from 1 January 2027.
An official announcement on India’s international SAF blending requirements is expected soon, industry sources said.
