Global Aviation Sustainability Outlook 2026
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Canadian SAF policy
The federal government of Canada continues
to advance its plans to scale up biofuels in the
country. Clean Fuel Regulations (CFR) are in
place for road transport, a new biofuel production
incentive kicked off in January 202672 and R&D
funding has been made available to SAF projects.
However, as of February 2026, a national SAF
mandate was not in place.
States are complementing federal policy to drive
SAF developments. From January 2026, the
updated British Columbia Low Carbon Fuels Standard requires a 2% reduction in the carbon
intensity of jet fuel, increasing to 10% by 2030.
This target has to be fulfilled via SAF.73 Alberta
and Ontario have not yet introduced state-level
SAF mandates, although they remain interested
in the clean fuels agenda, with incentives for
road transport biofuels.74 Changes to biofuels
policy in the US have prompted Canadian state
governments such as Ontario to increase regional
biofuels targets and introduce stricter rules.75
Asia-Pacific SAF policy
Asia-Pacific has seen notable SAF policy
developments, with mandates and other types of regulatory and financial incentives now being
introduced across most of the region (see Figure 3).
SAF policy developments in Asia-Pacific FIGURE 3
Production target 50,000
tonnes/year by 2025; new
funding (up to 20% CapEx) and
export permits announced;
further policy developments
expected in the first half of 2026China
Mandate 1% by 2027;
roadmap in developmentSouth KoreaMandate 1% by 2027,
5% by 2030IndiaMandate 1% by 2026Thailand
Mandate 1% by 2027,
47% by 2050Malaysia
Mandate 1% by 2027,
2.5% by 2030IndonesiaSAF target & levy 1% by 2026,
3-5% by 2030; new entity
(SAFCo) set up to procure
SAF, with first purchase likely
in Q1 2026Singapor e Target 10% by 2030
and production incentives;
additional taskfor ce set up to
explor e book-and-claimJapan
New Clean Fuels Programme
with $1.1 billion in production
incentives over 10 years to
support low carbon liquid
fuels production for aviation
and heavy freight transport;
ongoing gover nment
consultation on design of the
programmeAustralia
Source: World Economic Forum .
Global Aviation Sustainability Outlook 2026
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