India, EU differ on ICAO’s green fuel framework

Aneesh Phadnis Updated - August 30, 2023 at 07:42 PM.

While Europe is in favour of an ambitious policy, India and a few other countries are questioning the idea of quantifiable targets without corresponding access to funds and technology to produce SAF 

International Civil Aviation Organisation (ICAO) is developing a global framework to mandate the use of green fuel in international flights.

Currently in a discussion stage among ICAO members states, the global framework proposes quantifiable targets for adoption of sustainable aviation fuel (SAF) and lays down pathways to promote its use. The move follows ICAO’s adoption of long term aspirational goal of net zero carbon emission by 2050.

Concerns over targets

While Europe is in favour of an ambitious policy, India and a few other countries such as Ethiopia, Nigeria and Saudi Arabia are questioning the idea of quantifiable targets without corresponding access to funds and technology to produce SAF. 

In India the government has considered one per cent blending of SAF with jet fuel by 2025. But currently SAF production in India is in planning stages only. The government is worried that any ambitious target laid down by ICAO could thus hurt our carriers and lead to an increase in costs and airfares.

SAF is a waste-derived aviation fuel made from various sources such as used cooking oil, agricultural waste, fats or non-food crops. It can blended with conventional jet fuel to reduce carbon emissions. 

The global framework that is now under consideration is expected to come up for approval at a high level civil aviation ministerial conference in Dubai in November.

According to a draft proposal, the global framework will comprise four building blocks — policy and planning, regulatory mechanism, implementation support and financing for development and deployment of SAF.

“Our main concerns are that any ambitious quantifiable goal of SAF will inflate fares and cause market disparity affecting growth of aviation in India and other developing countries. The production of SAF is at a nascent stage globally and trillions of dollars are needed for this transition,” said India’s ICAO representative, Dr Shefali Juneja.

“US does not have a formal position on the global framework as the ICAO Council is still developing it, “ the US Federal Aviation Administration said in a statement.

For Net Zero

European Commission (EC) has called for an ambitious approach that will help achieve long-term net zero goals. To achieve a good and ambitious consensus at the Dubai conference, Commision is reaching out to other partners, it said.

“The European Commission has already funded several feasibility studies on SAF in Africa and in Caribbean. It will soon launch a new capacity building project for the support for the development of SAF under ICAO ACT-SAF programme,” it said in a statement. EC is providing four million Euros to India and African countries for SAF feasibility studies and certification of these fuels. Europe is also looking at possible co-financing and guarantee instruments for SAF projects.

The current global SAF production is less than 0.1 per cent of what is needed for net zero target, International Air Transport Association’s director general Willie Walsh said in June. “ But the trend is positive. In 2022 SAF production tripled to 300 million litres,” Walsh had said. He said problem is insufficient production capacity to meet demand. “The willingness of airlines to use SAF is not the issue. Every drop of SAF ever produced has been purchased and used,” Walsh had said.

Within India research on SAF is underway and a few demonstration flights have been carried out using SAF.

Indian Oil (IOC) has tied up with tech provider LanzaJet to produce SAF at its Panipat refinery and is seeking investments from airlines with a view to securing offtake commitments. The SAF plant is expected to be ready in two and half years.

In July, IOC also formed a JV with Praj Industries for producing biofuel including SAF.

Published on August 30, 2023 13:21

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