India Proposes Mandatory 1% Sustainable Aviation Fuel Blending from January 2027

Why in News?

• On 5 November 2026, reports stated that India's Ministry of Civil Aviation had circulated a draft policy proposing mandatory 1% Sustainable Aviation Fuel (SAF) blending from January 2027 for international flights.
• The proposed roadmap aims to increase SAF blending to 5% by 2030, supporting the decarbonisation of India's aviation sector.

Key Facts at a Glance

What is Sustainable Aviation Fuel (SAF)?

Sustainable Aviation Fuel (SAF) is a lower-carbon aviation fuel produced from eligible renewable or waste-based feedstocks, or through synthetic production pathways that meet applicable sustainability standards.

• SAF can be blended with conventional aviation turbine fuel and used in compatible aircraft without major engine modifications.
• It can be produced from used cooking oil, agricultural residues, certain municipal wastes and other sustainable feedstocks.
• Certain SAF pathways can reduce lifecycle carbon dioxide emissions by up to 80% compared with conventional jet fuel, depending on feedstock and production processes.
• SAF is considered an important near-term solution for reducing emissions from aviation, particularly long-distance flights that are difficult to electrify. 

India's Sustainable Aviation Fuel Blending Roadmap

The government had previously announced indicative SAF blending targets of 1% in 2027, 2% in 2028 and 5% in 2030 for international flights. The November 2026 proposal seeks to move towards mandatory implementation. 

Major Provisions of the Draft Policy

1. Mandatory Blending of SAF: The draft proposes introducing SAF into conventional aviation fuel supplies, beginning with 1% blending for international flights in 2027 and increasing the proportion progressively.
2. Promotion of Domestic SAF Production: The draft reportedly proposes using indigenously manufactured SAF to strengthen domestic production, reduce dependence on imported fuel and develop the country's green aviation industry.
3. Prevention of Economic Tankering: Airlines operating international services would be required to procure a minimum of 90% of their relevant annual aviation fuel requirements from international airports in India, according to the reported proposal.
4. Financial and Regulatory Support: The draft reportedly considers taxation relief, viability gap funding, green financing and support for refinery retrofitting to encourage domestic SAF production.
5. Innovation and Research: A proposed SAF Innovation Seed Fund would support pilot projects, indigenous technology development, feedstock optimisation, lifecycle assessment and startups.
6. Compliance Mechanism: Airlines and oil marketing companies could face penalties for failing to comply with mandatory blending obligations. The precise enforcement framework would depend on the final policy. 

What is Economic Tankering?

• Economic tankering refers to an airline carrying additional aviation fuel from an airport where fuel is cheaper to reduce refuelling at another airport where fuel is more expensive.
• Although this may reduce immediate fuel expenditure, carrying extra fuel increases aircraft weight and can lead to additional emissions. The proposed procurement requirement aims to discourage this practice and support fuel offtake at Indian airports.

International Framework: ICAO and CORSIA

International Civil Aviation Organization (ICAO)

• ICAO is a specialised agency of the United Nations, established under the Chicago Convention of 1944.
• Its headquarters is located in Montreal, Canada.
• ICAO develops international standards for aviation safety, security, efficiency and environmental protection.
• In 2022, ICAO member states adopted a long-term aspirational goal of achieving net-zero carbon emissions from international aviation by 2050.

Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

CORSIA is a global market-based mechanism established by ICAO to address carbon dioxide emissions from international aviation. It requires covered operators to offset emissions above a prescribed baseline, while eligible SAF can reduce their offsetting obligations.

• The CORSIA baseline for 2024–2035 is 85% of the covered international aviation emissions in 2019.
• India did not participate in the voluntary offsetting phases, but its applicable compliance obligations begin in 2027.
• CORSIA and India's proposed SAF blending mandate are related but distinct regulatory measures. 

Difference between SAF and Conventional Aviation Turbine Fuel

Significance for India

1. Decarbonisation of Aviation: SAF can reduce lifecycle greenhouse gas emissions and support the transition towards low-carbon aviation.
2. Energy Security: Indigenous SAF production could diversify India's aviation fuel supply and reduce dependence on conventional petroleum products.
3. Agricultural Value Addition: Crop residues and suitable biomass could create additional economic opportunities for farmers and rural industries.
4. Green Industrial Development: SAF production can stimulate investment in biorefineries, clean-fuel technologies and associated infrastructure.
5. International Compliance: Greater SAF adoption can help Indian airlines reduce their CORSIA-related offsetting obligations.
6. Global Competitiveness: Domestic SAF manufacturing could position India as an important producer and supplier in the emerging international green aviation market.

Challenges

• High Production Costs: SAF remains significantly more expensive than conventional aviation fuel, potentially increasing airline operating expenses.
• Limited Production Capacity: India requires substantial investment to establish commercially viable, large-scale SAF manufacturing.
• Feedstock Availability: Competing demand for waste oils, agricultural residues and biomass could restrict sustainable raw-material supplies.
• Supply Chain Infrastructure: Fuel collection, processing, certification, blending and airport distribution need further development.
• Environmental Concerns: Poorly managed feedstock cultivation could lead to land-use changes, biodiversity loss or additional water consumption.
• Certification Requirements: SAF must satisfy aviation fuel quality specifications and relevant sustainability criteria to qualify under international frameworks.

Way Forward

1. Expand Domestic Production: Establish SAF production facilities through public-private partnerships and targeted industrial investments.
2. Introduce Financial Incentives: Consider tax relief, viability gap funding and affordable green financing to narrow the cost gap.
3. Promote Research and Development: Support advanced technologies, including biomass conversion and synthetic aviation fuels.
4. Strengthen Feedstock Supply Chains: Develop sustainable collection systems for agricultural residues and waste materials.
5. Ensure Robust Certification: Implement lifecycle emissions assessment, traceability and internationally recognised sustainability standards.
6. Adopt Phased Implementation: Align mandatory blending requirements with domestic production capacity and airline affordability.

Conclusion

India's proposed mandatory Sustainable Aviation Fuel blending policy represents an important step towards greener aviation and improved energy security. Beginning with 1% blending in 2027, the initiative could accelerate domestic clean-fuel production, reduce lifecycle emissions and strengthen international aviation competitiveness. However, its success will depend on affordable production, adequate infrastructure, sustainable feedstock availability and effective regulatory implementation.

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