Multilateral development banks (MDBs) and development finance institutions (DFIs) can play a crucial role in supporting SAF projects, especially in markets with more complex regulatory and operational environments. Their support typically unfolds across two main stages: 1. Early-stage support: MDBs provide valuable technical expertise and capacity-building support in the early stages of a project. They might support in conducting feasibility studies including market analysis, feedstock assessment, technical feasibility, infrastructure reviews and regulatory assessments. If investable projects have not yet been identified, MDBs can support policy-makers in developing an overall SAF roadmap. MDBs can also play a role in fostering cross-industry collaborations that bring together the aviation, energy, financing and policy sectors. 2. Investment-stage support: As projects move closer to FID, MDBs often show strong willingness to invest either through debt or equity. In addition, they could also provide loan guarantees or other de-risking mechanisms. Having been involved early, MDBs gain a deep understanding of the project’s risk profile, making them well-positioned to make informed investment decisions. The International Finance Corporation (IFC – part of the World Bank Group), FMO (Dutch Entrepreneurial Development Bank), IDB Invest (part of the Inter-American Development Bank Group), the Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD) are among the most active MDBs and DFIs in climate blended finance. Many of these players, such as the IFC and EBRD, are committed to aligning 100% of their board- approved real sector operations with the Paris Agreement. This has resulted in an increase in the activity of these institutions in climate-related investments, including SAF. Beyond overall market viability and ensuring alignment to sustainability goals, MDBs typically put particular focus on the following criteria when scanning for the right opportunities in SAF: 1. Geographical focus: MDBs will have a clear regional focus based on the donor profile of the bank. 2. Social impact and inclusivity: MDBs prioritize projects that tackle social challenges and foster inclusivity, such as creating jobs, promoting gender equality and supporting marginalized communities. 3. Cross-industry collaboration: MDBs cultivate long-standing relationships with diverse industry stakeholders, making investments more appealing when they engage multiple clients across the aviation and energy space. MDBs provide valuable technical expertise and capacity-building support in the early stages of a project. What? EBRD’s geographic focus is centred around Central, Eastern and South-Eastern Europe, including Turkey, Eurasia and Southern and Eastern Mediterranean. On SAF, one of its focus countries is Kazakhstan where EBRD has actively supported KazMunaiGas and Air Astana in analysing the feasibility of producing SAF locally. How? This funding was triggered by EBRD’s support of KazMunaiGas’s decarbonization plans over the past few years and a recent investment made by EBRD in Air Astana. The support from EBRD was mainly in the form of financing for an initial feasibility study which included: 1 Decarbonization strategy definition: Identifying decarbonization targets specific to the aviation sector, benchmarking Kazakhstan’s goals against global standards and offering recommendations to enhance ambition. 2 SAF market analysis: Conducting a demand and supply assessment, examining feedstock availability and defining SAF project parameters.3 Technology and economic evaluation: Offering an overview of viable technologies, conducting a techno-economic assessment in collaboration with technology providers. 4 Offtake and regulatory development: Creating a template for SAF offtake agreements and suggesting regulatory reforms to support SAF market development. Impact: The study identified Alcohol-to-Jet as the most promising pathway to scale-up SAF in Kazakhstan, which is now being further explored. In the future, if a project reaches FID, EBRD could play a financing role in line with its mandate to support low-carbon transitions. EBRD could also help coordinate additional investment from multiple stakeholders to scale-up SAF production. To attract other investors, EBRD can play a role in offering other de-risking measures such as first-loss capital or loan guarantees.CASE STUDY 3 EBRD’s collaboration with KazMunaiGas and Air Astana Financing Sustainable Aviation Fuels 22

Financing Sustainable Aviation Fuels 2025