India's Sustainable Aviation Fuel Roadmap: A Pathway to Decarbonization

A report released by Deloitte and ISMA outlines India's potential in sustainable aviation fuel (SAF) production, emphasizing its necessity for the aviation sector's decarbonization. With the aviation industry poised for significant growth, the demand for SAF is expected to rise, aided by proposed blending mandates. The report highlights India's robust sugar industry as a key player in SAF production, capable of meeting over half of the nation's demand by 2040. It calls for a coherent policy framework to unlock this potential, recommending mandatory blending targets and financial support to boost early-stage projects.

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Published Sep 22, 2025

HYDROGEN

On September 11, 2025, Deloitte and the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) unveiled a pivotal report focusing on sustainable aviation fuel (SAF) and India's role in the global aviation sector's decarbonization efforts. As the aviation industry continues to thrive, with projections of 11-13% annual growth until 2030, the pressure to mitigate climate change impacts grows increasingly urgent. Without effective measures, aviation emissions are set to rise, potentially dominating global emissions by 2050.

The report underscores SAF as a critical solution for reducing emissions, with estimates suggesting it could account for 53-66% of the sector's emission reductions in the near, mid, and long term. India's sugar industry, leveraging surplus ethanol production from the first-generation (1G) route, is positioned to be a game-changer, potentially generating 350 to 400 crore liters of SAF by 2040. In the short term, the sugar sector could contribute 125 to 150 crore liters by 2030, aligning with international travel and corporate sustainability commitments.

Deepak Ballani, Director General of ISMA, emphasized India's unique opportunity to lead in SAF production. The report not only charts a clear path for India to meet its commitments under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) but also supports the government's ambition to establish the nation as a SAF export hub. The International Civil Aviation Organization (ICAO) has identified alcohol-to-jet technology as a viable long-term solution, with sugarcane-based feedstock presenting the most scalable and low-carbon option.

To fully realize the potential of SAF, the report advocates for a coherent and phased policy framework. Such a framework should include mandatory blending targets that extend beyond CORSIA to create market demand and provide investment certainty for both producers and users. Additionally, the report suggests implementing time-bound financial support mechanisms, such as tax incentives and viability gap funding, while streamlining regulatory approvals and bolstering research and development for emerging technologies.

This transformation represents not only a commitment to cleaner skies but also an opportunity to empower farmers and contribute to India's broader goals of economic self-sufficiency and sustainable development. As the aviation sector looks toward a greener future, India's preparedness and potential in SAF production could position it as a leader in global decarbonization efforts.