India to Make 1% Sustainable Aviation Fuel Compulsory on International Flights from 2027: CORSIA and SAF Explained
India is expected to make it compulsory for airlines to use jet fuel mixed with 1% Sustainable Aviation Fuel (SAF) on international flights from 2027. The share is planned to rise to 2% in 2028 and 5% in 2030. An official announcement is expected soon.
This comes as the compulsory phase of CORSIA (a UN scheme to control carbon emissions from international flights, run by the International Civil Aviation Organization, ICAO) starts in January 2027.
Indian airlines are estimated to face a yearly "offsetting" duty of about 5 million tonnes of CO₂. At about $10 to $15 per carbon credit, this means a yearly bill of about $50 to $75 million. Air India is expected to carry a large share because it runs many long-haul flights.
Industry bodies say India still has no complete national SAF policy. Such a policy would cover blending rules, pricing, home production, exports, carbon-credit rules and emissions reporting.
An ICAO study puts India's possible SAF production at 14 to 33 million tonnes. For now, IndianOil's Panipat Refinery is ready with about 30,000 tonnes of capacity, made by processing used cooking oil along with normal fuel. It is also building an alcohol-to-jet unit.
SAF today costs 2 to 5 times as much as normal jet fuel (Aviation Turbine Fuel, ATF). Oil companies want subsidies and guaranteed buyers, and airlines want SAF prices brought close to ATF prices. Other markets already have rules: the EU requires 2% SAF from 2025 (6% by 2030), the UK 2% from 2025 (10% by 2030), and Singapore a 1% target from 1 January 2027, funded by a levy on departing flights.
CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation)
CORSIA is a worldwide plan to stop carbon emissions from international flights from growing without control. It is run by the International Civil Aviation Organization (ICAO), the United Nations body for civil aviation. Under CORSIA, if an airline's international flights emit more carbon dioxide (CO₂) than an agreed limit, the airline must "cancel out" the extra by buying carbon credits, or reduce its duty by using cleaner fuel. It is the first global market-based climate scheme for a single industry.
CORSIA's compulsory phase starts in January 2027, which brings Indian airlines into the scheme for the first time. Their estimated duty of about 5 million tonnes of CO₂ a year is why India is planning SAF blending rules: every tonne of CO₂ saved through SAF reduces the carbon credits airlines must buy.
Sustainable Aviation Fuel (SAF): Science and Significance
Sustainable Aviation Fuel, or SAF, is jet fuel made from renewable or waste materials instead of crude oil. It can be made from used cooking oil, animal fat, farm waste, municipal solid waste, or even captured carbon and green hydrogen. Once made, it works just like normal jet fuel and is mixed with it, so planes and airports need no changes. Its main benefit is that it cuts the total carbon emissions of a flight over the fuel's full life.
India's planned 1% SAF rule for international flights from 2027 uses the targets first set in November 2023. Using SAF lets Indian airlines reduce the carbon credits they must buy under CORSIA, while building a home SAF industry could also make India an exporter of this fuel.
International Civil Aviation Organization (ICAO)
ICAO is the United Nations agency that sets worldwide rules for civil aviation. It was created by the Chicago Convention of 1944 and began work in 1947, with its headquarters in Montreal, Canada. It writes standards on safety, security, air navigation and the environment. Member countries then turn these standards into their own national rules.
ICAO runs CORSIA, whose compulsory phase from January 2027 is the main reason India is setting SAF blending rules now. ICAO's own study on India's SAF potential also supports India's hope of becoming a SAF production and export hub.
- India's planned SAF blending for international flights: 1% (2027), 2% (2028), 5% (2030)
- CORSIA compulsory phase: 2027 to 2035; baseline: 85% of 2019 emissions
- Estimated yearly offsetting duty for Indian airlines: about 5 million tonnes of CO₂
- Carbon credit price estimate: $10 to $15 each; yearly bill about $50 to $75 million
- India's SAF potential (ICAO study): 14 to 33 million tonnes
- IndianOil Panipat SAF capacity ready: about 30,000 tonnes (co-processing used cooking oil); alcohol-to-jet unit under development
- SAF price: about 2 to 5 times that of ATF
- EU mandate: 2% from 2025, 6% by 2030; UK: 2% from 2025, 10% by 2030; Singapore: 1% target from 1 January 2027