As global aviation faces mounting pressure to reduce emissions, India, the world’s third-largest aviation market, is preparing its roadmap to address stringent clean fuel regulations. With the European Union (EU) set to enforce sustainable aviation fuel (SAF) mandates starting in 2025, and the International Civil Aviation Organization’s (ICAO) CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) requirements commencing in 2027, India is strategizing to align its aviation industry with global sustainability goals while safeguarding national interests.
This blog explores India’s proactive steps, the challenges ahead, and the transformative potential of sustainable aviation fuels in reshaping the aviation industry.
India’s Cautious Approach to CORSIA
Introduced by ICAO, CORSIA aims to cap net aviation emissions at 2019 levels by requiring airlines to offset emissions exceeding the baseline through the purchase of carbon credits. While 129 countries have joined the scheme, India initially refrained from participating in the voluntary phase (2021–2026), citing concerns about the implications for developing nations.
However, starting in 2027, Indian airlines must comply with CORSIA’s offsetting requirements for international flights. The urgency of this compliance is amplified by the EU’s FuelEU Aviation regulation, which mandates a minimum SAF blend of 2% in aviation fuel by 2025, progressively increasing to 70% by 2050.
Navigating EU’s Fuel Regulations
The EU’s SAF mandates represent a significant challenge for Indian airlines, as failure to meet blending targets could result in fines. To address this, India’s government is engaging with multiple ministries, including:
- Civil Aviation
- Environment, Forest, and Climate Change
- Petroleum and Natural Gas
A key objective is to ensure that no international agreements compromise India’s interests while preparing airlines for compliance with global sustainability standards.
The Rise of Sustainable Aviation Fuels (SAF)
SAF, produced from alternative feedstocks such as residual food waste, grains, and alcohol, is central to reducing aviation emissions. It can reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel.
India’s SAF Strategy
Recognizing the importance of SAF, India has established:
- A 1% SAF blending target for 2027 and 2% for 2028.
- The Global Biofuels Alliance (GBA) with founding members including the US and Brazil.
Additionally, Indian airlines have made strides in SAF adoption:
- IndiGo operated a ferry flight with 10% SAF from Toulouse to Delhi.
- Air India (formerly Vistara) flew a 30% SAF-powered flight from Seattle to Delhi.
- SpiceJet conducted a demonstration flight using 25% SAF.
Building a Green Aviation Ecosystem
The push for SAF adoption in India is catalyzing innovation and investment. Several state-run and private enterprises are diversifying into SAF production:
- NTPC Green Energy Ltd (NGEL): Developing SAF production capabilities as part of its green hydrogen hub in Andhra Pradesh, NGEL is in talks with global airlines like British Airways and Lufthansa for SAF supply agreements.
- Other Stakeholders: Conventional energy companies are also exploring SAF production, signaling a shift toward cleaner energy solutions.
Key Challenges in India’s Transition to Green Aviation
While India’s SAF roadmap is promising, several hurdles remain:
- Cost Competitiveness:
SAF production is currently more expensive than conventional jet fuel, posing affordability challenges for airlines. - Infrastructure Development:
Scaling SAF production and establishing blending facilities will require significant investment and coordination across stakeholders. - Policy and Incentives:
India’s government must create robust policies and incentives to support SAF production and adoption while protecting the interests of developing nations in international agreements. - Global Market Dynamics:
The EU’s carbon border adjustment mechanism (CBAM), which taxes embedded carbon in imports, underscores the need for India to align its aviation sector with global sustainability standards to avoid economic penalties.
Opportunities in India’s Green Aviation Transition
Despite challenges, the shift toward green aviation fuels presents significant opportunities:
- Economic Growth:
Developing a domestic SAF industry could position India as a global leader in sustainable aviation, creating jobs and fostering economic growth. - Environmental Benefits:
By reducing emissions, SAF adoption aligns with India’s broader climate commitments under the Paris Agreement. - Technological Advancements:
Investment in SAF production and green hydrogen hubs will drive innovation in clean energy technologies. - Enhanced Global Standing:
Active participation in international schemes like CORSIA and compliance with EU regulations will strengthen India’s reputation as a responsible global player.
India’s Proactive Steps: Blending Ambition with Strategy
To ensure a smooth transition, India is pursuing a multi-faceted strategy:
- Collaboration with Stakeholders: The government is consulting with airlines, energy producers, and policymakers to develop a cohesive SAF roadmap.
- Baseline Adjustments: India successfully advocated for lowering CORSIA’s baseline to 85% of 2019 emissions, reducing the compliance burden on its airlines.
- Public-Private Partnerships: By fostering collaborations between state-run enterprises and private companies, India aims to scale SAF production and infrastructure.
The Role of Airlines in Driving Change
Indian airlines are already taking steps to integrate SAF into their operations, demonstrating a commitment to sustainability:
- Operational Trials: Airlines like IndiGo, Air India, and SpiceJet are experimenting with SAF-powered flights to evaluate performance and feasibility.
- Partnerships: Airlines are engaging with global SAF producers to secure long-term supply agreements.
These efforts highlight the aviation industry’s proactive approach to aligning with global decarbonization goals.
The Road Ahead: A Sustainable Future for Indian Aviation
India’s preparation for CORSIA and the growing SAF market reflects a broader commitment to sustainability in the aviation sector. By balancing international compliance with national interests, India is setting the stage for a greener, more resilient aviation industry.
Key Priorities for Success:
- Scaling SAF Production: Expanding production capacity and leveraging renewable feedstocks to meet blending targets.
- Incentivizing Adoption: Implementing policies that encourage airlines to adopt SAF while ensuring cost-effectiveness.
- Building Infrastructure: Developing robust blending and distribution networks to support widespread SAF use.
- Strengthening Collaboration: Fostering partnerships between government, airlines, and energy producers to accelerate the green transition.
Conclusion: Taking Flight Toward Sustainability
India’s approach to green aviation fuels and international schemes like CORSIA reflects a pragmatic yet ambitious strategy. By investing in SAF and aligning with global regulations, India is positioning itself as a leader in sustainable aviation while safeguarding its economic and environmental interests.
As the aviation sector evolves, the transition to greener fuels is not just an obligation but an opportunity for innovation, collaboration, and growth. Through its proactive measures, India is charting a path toward a sustainable future, proving that clean energy and economic prosperity can soar hand in hand.