India Pushes SAF Blending, IATA Warns Mandates Without Incentives Could Harm Airlines

India is moving forward with its strategy to incorporate Sustainable Aviation Fuel (SAF) into its aviation sector, setting ambitious blending targets: 1% SAF by 2027, 2% by 2028, and 5% by 2030 for international flights. The country, a rapidly growing aviation market, possesses substantial potential for SAF production due to its availability of biomass and agricultural residue.

However, the International Air Transport Association (IATA) has raised concerns. Tuhin Sen, Head Sustainability India at IATA, stated that mandating SAF blending without accompanying incentives is a 'no-go area.' He emphasized that such mandates could have unintended consequences for airlines, which are crucial for connectivity and economic growth. Currently, Aviation Turbine Fuel (ATF) constitutes a significant portion of an airline's operating costs, accounting for around 44% in India.

The Ministry of Civil Aviation acknowledges the complexity, emphasizing a multi-pronged approach rather than a 'silver bullet.' Civil Aviation Minister K Rammohan Naidu indicated that a new SAF policy is forthcoming, aimed at reducing crude oil imports, boosting farmers' income, and generating green jobs. India has access to over 750 million tonnes of biomass and nearly 213 million tonnes of surplus agricultural residue, providing a strong foundation for domestic SAF production.

Impact This news can significantly impact Indian airlines by potentially increasing operational costs if SAF prices are high and incentives are lacking. It could also spur investment in the SAF production sector, benefiting agriculture and creating new green industries. The development of SAF is crucial for the aviation industry's sustainability goals. Rating: 7/10.

Difficult Terms Sustainable Aviation Fuel (SAF): A type of jet fuel produced from sustainable sources like used cooking oil, agricultural waste, or forestry residues, designed to significantly reduce greenhouse gas emissions compared to conventional jet fuel. Aviation Turbine Fuel (ATF): The standard type of fuel used for jet aircraft engines. Mandate: An official order or requirement to do something. Incentives: Measures, such as tax breaks or subsidies, designed to encourage specific economic activities. Feedstock: The raw material from which a product is made. Biomass: Organic matter derived from living or recently deceased organisms, often used as a source of fuel or raw material. Agricultural Residue: The leftover plant material after crops have been harvested, such as stalks, leaves, and husks.