India finalising sustainable aviation fuel policy ahead of 2027 carbon rules
Aviation-sector stakeholders have been directed to accelerate readiness for Sustainable Aviation Fuel (SAF) use, as India's draft national SAF policy nears finalisation ahead of the mandatory phase of the International Civil Aviation Organization's (ICAO) carbon offsetting scheme for international flights, which begins in January 2027.
The draft policy is being refined through consultations across ministries and with industry, with an explicit aim of keeping the cost burden of the SAF transition low for airlines and passengers by identifying the most cost-effective production, distribution, and airport-supply mechanisms.
Reported policy elements include allowing a limited share of ethanol-based blending through the alcohol-to-jet pathway in aviation turbine fuel (ATF) specifications, alongside support for other SAF production routes.
A dedicated sustainability body within the civil aviation ministry has reportedly been proposed to oversee SAF production standards, certification, and lifecycle emissions accounting.
The push reflects India's dual objective of meeting international climate-linked aviation obligations while building a domestic SAF industry using agricultural residues, used cooking oil, and ethanol as feedstock.
CORSIA — ICAO's Carbon Offsetting and Reduction Scheme for International Aviation
CORSIA is a global market-based measure adopted by ICAO in 2016 to stabilise international aviation's net CO2 emissions, requiring airlines to offset emissions growth above a baseline by purchasing eligible emission units or using CORSIA-eligible SAF. It is being implemented in phases: a voluntary pilot phase (2021-2023), a voluntary first phase (2024-2026), and a phase from 2027 onward in which participation becomes mandatory for states above a defined share of international aviation activity (based on 2018 Revenue Tonne Kilometres).
Key Details
- CORSIA's baseline was set at 2019 emissions levels for 2021-2023, and revised to 85% of 2019 emissions from 2024 through the scheme's compliance periods extending to 2035.
- Compliance periods run in three-year blocks: 2021-23, 2024-26, 2027-29, 2030-32, and 2033-35.
- India did not join CORSIA's voluntary phases (2021-2026) but is required to participate from the mandatory phase starting January 2027, given its international aviation traffic share.
The urgency behind India's SAF policy stems directly from this 2027 mandatory-participation trigger — Indian carriers will face binding offset obligations on international routes from that date, and using CORSIA-eligible SAF is one of the two compliance routes (alongside purchasing carbon offset units).
Sustainable Aviation Fuel: Blending Pathways and India's Approach
SAF refers to aviation fuels produced from non-petroleum feedstocks (used cooking oil, agricultural/forestry residue, municipal waste, or synthetic power-to-liquid routes) that are certified to reduce lifecycle carbon emissions compared to conventional jet fuel while remaining chemically compatible ("drop-in") with existing aircraft engines and fuel infrastructure. The two most mature pathways are HEFA (Hydroprocessed Esters and Fatty Acids, from waste oils/fats) and ATJ (Alcohol-to-Jet, typically from ethanol).
Key Details
- India's policy discussions have centred on permitting a limited ethanol-blend share (reported around 1%) in ATF via the alcohol-to-jet pathway, alongside HEFA-based SAF.
- HEFA and ATJ are considered the most cost-effective near-term pathways for India given existing ethanol production capacity (built up under the Ethanol Blended Petrol programme) and waste-oil collection infrastructure.
- SAF is typically blended with conventional jet fuel up to a certified limit (commonly up to 50% under current international aviation fuel specifications) rather than used neat, to preserve engine and infrastructure compatibility.
The reported ATF specification amendment enabling ethanol blending via ATJ is the concrete regulatory step operationalising India's SAF ramp-up, using existing ethanol infrastructure to bootstrap a fuel category the aviation sector has almost no domestic production capacity for today.
Linkage to the National Green Hydrogen Mission
The National Green Hydrogen Mission (approved by the Union Cabinet in January 2023, with an outlay of about ₹19,744 crore through 2029-30) aims to make India a global hub for green hydrogen production and derivatives, targeting at least 5 million tonnes per annum of green hydrogen production capacity by 2030. Green hydrogen is a key input for Power-to-Liquid (synthetic) SAF pathways, which use renewable electricity to produce hydrogen and combine it with captured carbon to synthesise jet fuel, independent of biomass feedstock constraints.
Key Details
- The National Green Hydrogen Mission was approved in January 2023 with a total outlay of about ₹19,744 crore, targeting 5 MMT annual green hydrogen production capacity by 2030.
- India's falling solar and battery storage costs are cited as giving it a cost advantage in green hydrogen production relevant to future Power-to-Liquid SAF.
- Aligning SAF policy with the Green Hydrogen Mission is intended to position airports and refineries as future decarbonisation hubs combining biomass-based and hydrogen-based SAF routes.
While near-term SAF supply will rely on HEFA and ethanol-based ATJ, India's SAF policy is being designed with an eye to longer-term synthetic SAF production leveraging the Green Hydrogen Mission's cost and capacity targets, linking two climate policy tracks that would otherwise run in parallel.
- CORSIA's mandatory phase for international flights begins January 2027; India did not participate in the 2021-2026 voluntary phases.
- CORSIA baseline: 2019 emissions for 2021-2023; 85% of 2019 emissions from 2024 through 2035; compliance periods run in three-year blocks to 2035.
- Reported ATF specification change allows up to about 1% ethanol blending via the alcohol-to-jet pathway.
- The National Green Hydrogen Mission (approved January 2023, outlay about ₹19,744 crore) targets 5 million tonnes per annum green hydrogen production capacity by 2030, relevant to future synthetic SAF pathways.