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

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.

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 their 2019 levels using SAF 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 from 2027 to 2035, covering all international flights between ICAO’s member states. 

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. 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. 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.

Air India is expected to account for a significant share of this liability, given its extensive long-haul and ultra-long-haul international operations.

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.

“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. Kumar.

The industry is seeking export permissions for SAF, as India looks to position itself as a global production and export hub, leveraging its potential access to used cooking oil, agricultural residues, and other sustainable feedstocks. This ambition comes as Europe faces growing competition for limited supplies of waste-based feedstocks, particularly used cooking oil, to meet its rising SAF blending requirements.

An ICAO feasibility study estimates India’s potential SAF production at 14 million tonnes to 33 million tonnes under a higher estimate, based on the feedstocks and pathways assessed. Currently, it is prepared for a capacity of 30,000 tonnes to meet the 1% blending target for 2027 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 scale green aviation fuel production.

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.

Several international markets have already introduced SAF blending mandates that affect Indian airlines operating flights from their airports. The European Union, for instance, mandated a 2% SAF share in aviation fuel supplied at covered EU airports from 2025, rising to 6% by 2030.

The U.K. 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 factor the requirements into their operations when departing from the relevant airports. Singapore has also introduced a 1% SAF target, funded through a mandatory levy on departing flights, from January 1, 2027.

(With inputs from Saptaparno Ghosh)