Airbus pitches for Sustainable Aviation Fuel programs to be included under India's CSR framework.

European aircraft manufacturer Airbus is advocating for voluntary Sustainable Aviation Fuel (SAF) programs to be incorporated into India's Corporate Social Responsibility (CSR) framework. Julien Manhes, Head of SAF and CDR Development at Airbus, believes this approach offers a significant value proposition for corporates seeking to reduce their carbon footprints, allowing them to offer business travel with a lower environmental impact.

For airlines, these voluntary SAF programs present an opportunity to differentiate themselves and attract corporate and cargo customers. Airbus also highlighted the collateral socio-economic benefits for India arising from feedstock collection for SAF production, noting the country's substantial biomass and agricultural residue resources.

Airbus's proposal suggests that corporate expenditure on purchasing SAF could potentially fulfill CSR obligations, thereby incentivizing SAF adoption. India has ambitious SAF blending targets, aiming for 1% by 2027, 2% by 2028, and 5% by 2030. Manhes emphasized that voluntary demand, rather than solely mandates, is crucial for achieving net-zero emissions by 2050, citing that mandates without incentives are a "no-go area" according to IATA. A study by IATA suggests India has the potential to become a significant SAF production hub in South Asia.

Impact: This news is significant for the Indian aviation sector, corporate sustainability initiatives, and the renewable energy landscape. By linking SAF to CSR, it could drive substantial investment and demand for sustainable fuels, potentially boosting related industries and supporting India's environmental goals. The development of local feedstock for SAF could also benefit the agricultural sector. Rating: 7/10

Definitions: SAF (Sustainable Aviation Fuel): A type of jet fuel made from sustainable sources such as used cooking oil, agricultural waste, or synthetic processes, designed to significantly reduce carbon emissions compared to traditional fossil jet fuel. CSR (Corporate Social Responsibility): A framework where companies integrate social and environmental concerns into their business operations and interactions with their stakeholders. In India, certain profitable companies are mandated to spend a minimum percentage of their profits on approved CSR activities. Feedstock: The raw material or primary product used to create or manufacture other products. For SAF, feedstock can include various organic materials like plant matter, waste oils, or gases. Biomass: Organic matter derived from living or recently deceased organisms, such as plants and agricultural waste, which can be used as a source of energy or for producing biofuels. ATF (Aviation Turbine Fuel): The standard jet fuel used to power most commercial aircraft. SAF is designed to be a 'drop-in' fuel, meaning it can be blended with and used in existing ATF systems. IATA (International Air Transport Association): A global trade association representing airlines, which works to set standards and facilitate cooperation within the airline industry.