Regulations Driving Sustainable Aviation Fuel Implementation
The advancement of SAF is a global undertaking. The European Union, the UK and the United States have recognised the value of this alternative fuel to help decarbonise aviation and have drawn up regulations to accelerate its adoption.
Since these regulations are not voluntary, the demand for SAF will increase as the regulations grow tighter. And by mandating SAF usage, they encourage the development of new SAF technology.
To start with, the International Air Transport Association (IATA) has committed to achieving net-zero carbon emissions by 2050, with SAF forming a key role in this initiative. (iata.org)
SAF Regulations: EU
In the EU, the ReFuelEU Aviation initiative aims to mandate a gradual increase in SAF blending for flights originating in the EU, starting with a modest 2% in 2025 and ramping up to 6% by 2030, 20% by 2035, and up to 70% by 2050. SAF covers synthetic fuels (RFNBO: Renewable Fuels of Non-Biological Origin), biofuels and recycled carbon fuels based on the sustainability criteria of set out in the Renewable Energy Directive (RED III) (Directive (EU) 2018/2001, Update 2023). This initiative forms part of the EU’s Fit for 55 package which has a greenhouse gas (GHG) emissions reduction target of 55% versus 1990 by 2030.
For EU compliance, eSAF is treated as synthetic aviation fuel produced from green hydrogen (manufactured using low-carbon electricity) and captured carbon, aligned to the Renewable Energy Directive RFNBO framework.
Under the EU Renewable Energy Directive, an RFNBO must be produced from renewable electricity, have no biological origin, meet EU additionality, temporal, and geographical requirements, and achieve at least 70% greenhouse gas emission savings compared to fossil fuels on a full life cycle basis.
EU ETS
EU Emissions Trading Scheme (EU ETS) is a “cap and trade” system, and the aviation component of EU ETS regulates emissions from flights within the European Economic Area. It does so by requiring airlines to surrender emissions allowances annually, with a progressive reduction in free allocations to drive emissions reductions and low-carbon fuel adoption. The EU ETS recognises Sustainable Aviation Fuel by permitting reduced compliance obligations where SAF with verified lifecycle emission savings is used, and it is complemented by EU measures such as ReFuelEU Aviation that mandate increasing SAF blending levels over time.(Climate Catalyst: Sustainable aviation fuel policy in the European Union)
SAF Regulations: UK
Similarly, the UK government, for instance, has set a SAF target that mandates at least 2% of aviation fuel must be from sustainable materials by 2025, 10% by 2030 and 22% by 2040. A dedicated Power-to-Liquid (PtL) obligation (the UK’s eSAF-type sub-target) is introduced from 2028 at 0.2%, rising to 3.5% in 2040. PtL/eSAF pathways are framed around low-carbon electricity supply options. Furthermore, a revenue certainty mechanism for SAF investment is under consultation in 2026, with implemention in 2026 subject to parliamentary process.
SAF Regulations: US
Meanwhile, the USA has no national blending mandate equivalent to the EU or UK, and SAF uptake has been driven by incentives and state programmes.
The US has, however, set ambitious goals through the SAF Grand Challenge, aiming to produce at least 3 billion gallons (11.3 billion litres) of SAF annually by 2030 and 35 billion gallons by 2050 for all US domestic needs. Furthermore, the USA has introduced initiatives like the Sustainable Skies Act, introduced in May 2021 (congress.gov), which provides tax credits and incentives for SAF production and usage. Credits up to $2/gallon for GHG-saving SAF, and other state-based tax credit systems.
Examples of federal tax incentives include the Section 40B SAF credit (irs.gov), the Section 45Z Clean Fuel Production Credit (IRS Notice), and state level regulations include California’s Low Carbon Fuel Standard (arb.ca.gov).
CORSIA
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), developed by the International Civil Aviation Organization (ICAO), aims to stabilise net CO₂ emissions from international aviation at 2019 levels through mandatory monitoring, reporting, verification, and the use of approved carbon offsetting and Sustainable Aviation Fuel credits. CORSIA’s intention is to complement other schemes, such as the EU ETS. CORSIA includes SAF within its emissions strategy by allowing airlines to claim lifecycle CO₂ emission reductions when approved CORSIA-eligible fuels are used, provided the fuels meet defined sustainability criteria and achieve specified greenhouse gas reduction thresholds set by the International Civil Aviation Organization. (CFP Energy: CORSIA Explained: Global Carbon Offsetting for International Flights)
For more:
- Sustainable Aviation Fuel
- How is Sustainable Aviation Fuel Made?
- SAF vs Jet Fuel
- Why Direct Air Capture is Critical to Sustainable Aviation Fuel Production?
- How Does Sustainable Aviation Fuel Reduce Emissions?
- What is eFuel?
- What is eMethanol?