Draft SAF policy proposes 90 per cent local fuel uplift for international airlines

Draft SAF policy proposes 90 per cent local fuel uplift for international airlines

India’s draft National Sustainable Aviation Fuel policy mandates airlines to source ninety percent of their international flight fuel domestically, effectively combating economic tankering by ensuring stable demand for local producers. This strict uplift requirement applies to both domestic and foreign carriers, aiming to build a robust domestic SAF ecosystem while exempting specific humanitarian or emergency operations. To support this transition, the framework proposes significant financial incentives, including viability gap funding, tax reliefs, and concessional financing for early-stage production. These measures are designed to stimulate investment in SAF infrastructure, addressing the high costs and supply constraints that typically hinder the adoption of sustainable fuels in the aviation sector. Crucially, the proposal introduces a national registry to track emissions reductions and allows environmental benefits to be traded separately from physical fuel. This mechanism raises greenwashing concerns, as it permits the decoupling of carbon credits from actual fuel use, potentially enabling airlines to claim sustainability credentials without necessarily reducing their real-world operational emissions through direct substitution.

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