The Global SAF Landscape: A Turning Point in Aviation
Sustainable aviation fuel, or SAF, has rapidly ascended to the forefront of climate discourse within the aviation industry. Its promise lies in its capacity to drastically cut lifecycle emissions from aircraft operations, without demanding radical changes to existing infrastructure or aircraft technology. As airlines, governments and industry stakeholders work toward ambitious net-zero targets, SAF has emerged as a central enabler, projected to contribute more than 60 percent of aviation’s carbon reduction pathway.
Yet, despite its promise, SAF today accounts for less than one percent of total jet fuel usage. With global demand expected to soar, production capabilities remain well below target. Over 300 renewable fuel projects have been announced globally, but only a fraction are poised to reach operational status by the end of this decade.
This mismatch between ambition and reality presents both a challenge and a window of strategic opportunity—particularly for countries willing to position themselves early in the SAF value chain.
India’s Natural Advantage: Feedstock and Policy Potential
India is uniquely equipped to seize this opportunity. The country enjoys abundant feedstock availability—from agricultural residues to used cooking oil—and a robust biochemical and refining ecosystem. Moreover, its diverse geography, growing domestic demand, and well-established research institutions offer a fertile ground for innovation and scalable production.
However, natural advantages alone are not enough. The global SAF race is a policy-led movement. Regions like the United States and European Union have advanced production thanks largely to consistent incentives, mandates, and long-term regulatory clarity. In contrast, countries still in the policy formulation phase risk falling behind, despite their resource potential.
India has the tools to lead, but a decisive policy shift is required. Strong and targeted incentives for producers, guaranteed offtake frameworks, and investment in certification infrastructure can propel the ecosystem forward.
Learning from the World: Incentives Over Mandates
A key insight emerging from global SAF development is the effectiveness of incentives over mandates. While mandates offer a clear signal to industry, they risk creating demand without sufficient supply, driving up costs and discouraging investment. In contrast, incentive-based models—such as the United States’ Inflation Reduction Act—have proven more conducive to scaling production.
India, at its current stage of SAF evolution, stands to benefit from an incentive-first approach. Tailored fiscal instruments, such as tax credits, production-linked subsidies, or SAF-specific viability gap funding, could dramatically alter the risk-reward calculus for producers and investors.
Equally important is fostering regional collaboration and knowledge exchange. By learning from jurisdictions that have successfully implemented SAF policy frameworks, India can avoid pitfalls and accelerate implementation.
Infrastructure, Timelines, and Market Readiness
Even with policy support, SAF production remains a long-lead endeavor. Most commercial-scale biorefineries take four to five years from concept to commissioning. That timeline poses a critical planning challenge. If India aims to be a global SAF supplier by 2030, groundwork must begin now.
Beyond production facilities, attention must be paid to supply chain readiness. This includes storage, blending infrastructure, logistics integration at airports, and robust sustainability verification mechanisms.
The private sector, public institutions, and academia must collaborate to build a future-ready SAF ecosystem that integrates feedstock innovation, process optimization, and lifecycle carbon accounting.
The Larger Narrative: India’s Role in the Global Net-Zero Transition
By embracing SAF leadership, India does more than secure a share in a burgeoning industry. It reinforces its standing as a climate-responsible nation and a solution provider for the global South. The country can offer scalable, cost-effective SAF solutions that serve both domestic needs and international carriers seeking lower-emission fuel alternatives.
The move would also align with broader national goals—boosting rural employment, supporting agricultural waste valorization, enhancing energy security, and contributing to Make in India and green industrialisation objectives.
Conclusion: A Strategic Call for Early Action
India’s moment to act is now. With the world still early in its SAF journey, there is space for new leaders to emerge. By crafting an ambitious, yet pragmatic policy framework anchored in incentives, India can unlock significant socio-economic and environmental value.
The window of opportunity may be brief. If India is to move from potential to position—from feedstock-rich to future-ready—then clarity, coordination, and conviction will be key. The path is clear, the world is watching, and the time to lead is here.