India is finalising a comprehensive policy framework for sustainable aviation fuel (SAF) as the country prepares to enforce mandatory compliance with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) starting in January 2027.
Civil Aviation Minister K Rammohan Naidu recently reviewed the nation’s readiness, signalling that the regulatory groundwork is nearing completion to ensure domestic carriers can meet international emissions standards without facing disproportionate cost burdens.
The move marks a critical juncture for the aviation sector, which faces mounting pressure to decarbonise while maintaining competitive ticket prices.
By establishing a clear SAF policy, the government aims to stimulate domestic production and supply chains, reducing reliance on imported green fuels that could otherwise inflate operational costs for airlines.
This regulatory clarity is expected to influence capital expenditure plans for both fuel producers and carriers, who must now align their medium-term strategies with the impending mandate.
The timing of the policy finalisation is significant, coming as global energy majors and refiners reassess their decarbonisation roadmaps.