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India Proposes 1% Mandatory Green Jet Fuel Blending from January, Targets 20% SAF Use by 2040

Written by: Team Angel OneUpdated on: 5 Nov 2026, 7:22 pm IST
India has proposed mandatory SAF blending for international flights, starting at 1% and rising to 20% by 2040.
India Proposes 1% Mandatory Green Jet Fuel
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India is preparing to introduce mandatory blending of sustainable aviation fuel for international flights. A draft policy circulated by the Ministry of Civil Aviation proposes an initial blending requirement of 1% from January. 

The requirement would increase gradually under a longer roadmap, reaching 5% by 2030 and 20% by 2040. 

A Phased Roadmap for SAF 

The proposal divides the transition into two phases. The first phase aims to raise SAF blending to 5% by 2030. 

The second phase would take the blending requirement further, with a target of 20% by 2040. 

Airlines May Face New Fuel Requirements 

The draft also proposes that domestic and international airlines uplift nearly 90% of their annual aviation turbine fuel requirement for international operations from airports in India. 

The government has linked this proposal to preventing economic tankering, where airlines carry additional fuel to reduce purchases at airports where fuel costs are higher. 

SAF Can Be Used With Existing Aircraft 

Sustainable aviation fuel can be blended with conventional aviation turbine fuel without requiring airlines to replace existing aircraft or engines. 

According to the sources, SAF can potentially reduce carbon emissions by up to 80%, making it an important part of efforts to lower aviation-related emissions. 

Cost Remains a Major Concern 

Airlines have raised concerns about the cost of sustainable aviation fuel. According to  sources, bringing down production costs will be important for meeting the proposed targets. 

The draft also provides for possible penalties for airlines and oil marketing companies that fail to meet the proposed blending requirements. 

Read More: India Removes FY26 Carbon Emission Targets for Refineries and Textile Units Under Carbon Credit Scheme! 

Conclusion 

India's proposed roadmap would begin with a 1% SAF blending requirement and gradually move towards 20% by 2040. The proposal now places the focus on building enough supply while addressing the cost challenges associated with sustainable aviation fuel. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Nov 5, 2026, 1:52 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.
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