Sustainable jet fuel policy India Sustainable jet fuel policy in India aims to create a regulatory framework for SAF blending mandates, fiscal incentives, and public-private partnerships supporting low-carbon aviation fuel adoption.

The Sustainable Jet Fuel Policy in India is in a critical phase of evolution, transitioning from an overarching policy intent to a set of concrete, enforceable regulatory mechanisms. This policy is foundational, as it provides the essential stability and incentive framework necessary to mobilize the billions in investment required for establishing a commercial-scale Sustainable Aviation Fuel (SAF) industry.

Qualitatively, the policy structure must address three core pillars: Demand Creation, Supply De-risking, and Sustainability Governance.

For Demand Creation, the central policy instrument being discussed is the Mandatory Blending Requirement. This is a policy mechanism that obligates airlines, or fuel suppliers, to incorporate a minimum percentage of SAF into their jet fuel mix, starting with international flights to comply with global mandates, and progressively extending to domestic operations. The policy’s qualitative success hinges on the clarity, stability, and long-term trajectory of these mandate levels, which provide producers with the guaranteed off-take they need.

To address Supply De-risking, the policy needs to incorporate a robust Fiscal and Financial Incentive Structure. Since SAF currently carries a significant cost premium, the policy must bridge this gap. This includes qualitative measures like offering Production-Linked Incentives (PLI) to new SAF manufacturing plants, providing preferential tax treatment or exemptions on feedstock procurement, and establishing concessional financing or loan guarantees for capital-intensive refinery projects. A successful policy ensures that the initial economic burden of adopting a cleaner fuel is shared across the value chain, not borne solely by the end-user or the producer.

The third pillar, Sustainability Governance, is non-negotiable for international acceptance. The policy must establish a rigorous, transparent system for Feedstock and Fuel Certification. This requires setting clear domestic sustainability criteria to ensure feedstocks do not compete with food or lead to unwanted land-use change, and instituting a framework for carbon accounting that tracks lifecycle emissions accurately. The policy must ensure that the SAF produced in India is verifiable and aligns with stringent global standards, providing the qualitative assurance necessary for global trade and compliance.

Furthermore, a key qualitative component of the policy involves Technology Neutrality and Encouragement of Innovation. The policy should be designed to support all certified and commercially viable production pathways—HEFA, AtJ, FT, etc.—to allow market forces to determine the most efficient and scalable solution for India’s unique feedstocks.

The qualitative challenge for the policy is one of effective coordination. It requires the seamless alignment of multiple government bodies—the Ministry of Civil Aviation, the Ministry of Petroleum and Natural Gas, the Ministry of New and Renewable Energy, and the Ministry of Agriculture—to create a unified, long-term national approach. A fragmented policy environment would introduce unacceptable risk for major industrial investments. The quality of the final policy will be the ultimate determinant of the speed and scale of India’s SAF transition.

FAQs on Sustainable jet fuel policy India
Q1: What is the primary role of the blending mandate in the policy?
A: The primary role is to provide demand certainty. By legally requiring a percentage of SAF in the fuel mix, the mandate guarantees a long-term market for producers, which is the most critical qualitative factor for justifying large-scale capital investments in new refinery capacity.

Q2: How does the policy balance promoting SAF and managing airline costs?
A: The policy attempts to balance this by implementing financial incentives (like production subsidies or tax breaks) which qualitatively reduce the cost premium of SAF at the refinery gate. The goal is to minimize the economic shock to airlines while ensuring the fuel's availability.

Q3: Why is alignment with international standards a core policy focus?
A: Alignment is a core focus because international flights are the immediate target for SAF mandates (CORSIA). Any domestically produced SAF must be internationally certified to prove its environmental benefits and safe operational characteristics, which is a non-negotiable qualitative requirement for global air travel.

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