How Asia-Pacific's New SAF Mandates Will Reshape Global Aviation Decarbonization

The Asia-Pacific Sustainable Aviation Fuel (SAF) market is shifting. This region is the world's fastest-growing aviation market. It now faces immense pressure to reduce carbon emissions. Governments are moving from voluntary goals to firm SAF mandates and targets. This action accelerates the region's aviation decarbonization efforts.

Policy and Regulatory Acceleration

Several key nations have recently announced binding targets. These policies create the demand certainty needed for major investment. Japan leads the way with a binding 10% SAF mandate by 2030 for international flights. Singapore will introduce a SAF levy on all departing flights from October 2026. This levy supports a 1% SAF target by the end of 2026, rising to 3-5% by 2030.

Other major economies are also setting clear roadmaps. India has announced blending targets for international flights. These targets start at 1% by 2027 and increase to 5% by 2030. South Korea confirmed a mandatory 1% blend by 2027 for departing flights. Indonesia has also proposed a 1% SAF blend by 2027.

Challenges to Regional SAF Production

The region accounts for nearly 40% of global air traffic. It is poised to produce 40% of the world's SAF by 2050, according to IATA forecasts. However, the regional SAF production landscape is fragmented. The lack of a uniform policy across the region presents a challenge.

• Feedstock Potential: Asia-Pacific currently holds nearly 60% of the global supply of Used Cooking Oil (UCO) feedstock. This is a key resource for SAF production.
• Supply Gap: Despite this potential, the region’s estimated SAF production capacity of 5.1 million tonnes by 2030 is only about 4.2% of current jet fuel demand. This highlights a significant supply gap.
• Harmonization: A lack of harmonized regulations across countries hinders investment and fair competition.

Airbus SAF Collaboration and Investment

Aircraft manufacturer Airbus is a key player in accelerating the SAF supply chain. The company views SAF as critical to achieving the industry’s net-zero goal by 2050. All Airbus aircraft can currently operate with up to a 50% SAF blend. The manufacturer is working toward 100% SAF capability by 2030.

Airbus has engaged in multiple impactful partnerships. These collaborations aim to accelerate production and harmonize supply chains.

• Strategic Investments: Airbus and the Cathay Group announced a joint investment of up to US$70 million in October 2025. This fund is dedicated to scaling SAF production in Asia and globally.
• Local Ecosystem Development: Airbus partnered with Qantas to co-invest US$200 million in 2022. This fund supports the Australian biofuels industry.
• Research & Standards: The manufacturer is collaborating with the Aerospace Malaysia Innovation Centre (AMIC). This joint research focuses on SAF feedstock and production pathways validated under the ICAO CORSIA framework.

Impact on Airlines and the Future of Air Travel

The new mandates place pressure on airlines. Carriers must secure long-term SAF offtake agreements. Singapore Airlines Group, for example, has committed to a target of 5% SAF in its total fuel use by 2030.

The transition to net-zero air travel requires significant capital. The high cost of SAF compared to conventional jet fuel remains a barrier. Government incentives and clear policy signals are essential. The Association of Asia Pacific Airlines (AAPA) has set a collective target. They strive for 5% SAF utilization in fuel uplifted by 2030. This collective ambition underscores the region's commitment. It transforms a competitive challenge into a shared environmental opportunity.

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