India Expected to Mandate 1% SAF Blending for International Flights From 2027 as CORSIA Mandatory Phase Nears
Why It MattersIndian carriers, Air India above all, face a new fuel-cost and carbon-credit burden on international routes while no national SAF policy yet defines pricing, production or export rules.
India is expected to require airlines to uplift blended Sustainable Aviation Fuel at 1% from 2027, 2% from 2028 and 5% from 2030 for international flights, according to industry sources, with an official announcement expected soon. The same sources voiced concern that a national SAF policy has not yet been framed, with about two months left before the mandatory phase of the UN aviation emissions scheme takes effect in January 2027.
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), adopted by ICAO in 2016, requires airlines to keep emissions from international flights below 85% of their 2019 levels using SAF or eligible carbon credits. It runs in three phases: two voluntary phases between 2021 and 2026, and a mandatory third phase from 2027 to 2035 covering international flights between ICAO member states. Indian airlines are estimated to face an annual offsetting liability of around five million tonnes of CO2, requiring the surrender of an equivalent number of eligible carbon credits. At an estimated $10-15 per credit, that equals $50-75 million a year, according to SAF Association secretary general Rohit Kumar, and Air India is expected to carry a significant share because of its long-haul and ultra-long-haul operations.
A comprehensive policy covering blending obligations, pricing mechanisms, domestic production and export provisions has yet to be finalised, and clearer rules are needed on carbon-credit eligibility, international authorisation of emissions-reduction projects, and airline-level emissions reporting. The industry is seeking export permissions for SAF as India aims to become a global production and export hub using used cooking oil, agricultural residues and other sustainable feedstocks. Indian Oil's Panipat Refinery is prepared for a capacity of 30,000 tonnes to meet the 1% target for 2027, co-processing used cooking oil with conventional fuel and developing an alcohol-to-jet unit. Oil manufacturing companies are seeking subsidies and offtake guarantees, while airlines want SAF priced on par with ATF, against the current 2-5 times ATF prices.
Several foreign markets already have mandates affecting carriers such as Air India when departing from their airports. The European Union mandated a 2% SAF share at covered airports from 2025, rising to 6% by 2030; the U.K. mandate starts at 2% in 2025 and rises to 10% by 2030; and Singapore will introduce a 1% SAF target, funded by a mandatory levy on departing flights, from January 1, 2027.
