Govt mulls to mandate 1% green jet fuel blending

The Indian government is considering implementing a mandatory requirement for blending 1% sustainable aviation fuel (SAF) into international flights starting in January 2023. This initial blending mandate will gradually increase to 5% by 2030 and then reach 20% by 2040, as outlined in a draft policy circulated by the Ministry of Civil Aviation.

The proposed SAF blending policy aims to reduce carbon emissions by up to 80% compared to conventional aviation fuel (ATF). Sustainable aviation fuel is a liquid fuel that can be blended with ATF without requiring any modifications to existing planes or engines.

In October 2022, the International Civil Aviation Organisation (ICAO) member states agreed to a long-term aspiration goal of achieving net-zero carbon dioxide (CO2) emissions from aviation by 2050. SAF is considered the fastest way for the aviation industry to achieve this target.

The draft policy emphasizes that both domestic and international airlines must source nearly 90% of their annual aviation turbine fuel (ATF) needs from international airports in India. This is intended to prevent "economic tankering," a practice where airlines transport additional fuel from one airport to avoid purchasing it at a destination where it is more expensive, ultimately impacting fuel demand and airport operations.

Non-compliance with the proposed SAF blending requirements could result in penalties for airlines and oil marketing companies (OMCs). However, industry stakeholders have cautioned that unless the production cost of sustainable aviation fuel is significantly reduced, reaching the set emission targets may prove challenging.