Why the Policy Matters
With international aviation regulations tightening after 2027, India is writing a national sustainable aviation fuel policy that looks as far ahead as 2050. The draft sets blending targets of 1 % in 2027, 2 % in 2028 and 5 % in 2030 for outbound international flights. Meeting those figures will help carriers avoid expensive carbon offset purchases under the Carbon Offsetting and Reduction Scheme for
International Aviation. Just as important, the policy signals that India wants to be both producer and consumer of the new fuel rather than a passive buyer.
Strategic Blending Targets
The chosen percentages appear modest, yet they translate into more than one billion litres a year by 2030. That predictable demand can unlock investment in feedstocks such as used cooking oil, non edible oilseeds and agricultural residues that are abundant across the country. A useful insight is that the aviation mandate will also stabilise prices for biodiesel makers who often face seasonal oversupply. Airlines and road transport therefore become complementary outlets rather than competitors.
Industrial and Rural Opportunities
A network of decentralised refineries is likely to emerge near feedstock sources before final upgrading at coastal hubs. This hub and spoke approach cuts expensive long distance trucking of raw biomass and brings processing jobs to districts that rarely benefit from aviation spending. Universities are already partnering with refineries to develop enzymes that lift conversion yields, indicating that research funding will follow the policy.
International Collaboration
India is expected to align its carbon accounting with European Union guidance, making its fuel automatically eligible for use by foreign carriers on code share routes. That compatibility could give domestic suppliers access to lucrative export contracts even before the home market reaches full maturity.
Conclusion
By matching realistic blend goals with a clear investment timeline, India is turning a regulatory challenge into a broad economic opportunity that connects farms laboratories refineries and airlines in a single climate positive ecosystem.
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