Global Aviation Sustainability Outlook 2026
Page 25 of 71 · WEF_Global_Aviation_Sustainability_Outlook_2026.pdf
China
In October 2025, China’s National Development
and Reform Commission (NDRC) introduced an up-
to-20% capital expenditure subsidy for clean fuels
produced using SAF pathways, ammonia, methanol
and carbon capture utilization and storage (CCUS).
The subsidy’s aim is to unlock local green hydrogen
production, with experts predicting potential
savings of 5-8% in final fuel costs.76 In the first half
of 2026, stakeholders expect China to announce
plans for a SAF mandate for domestic flights,
which could see rapid growth of the domestic SAF
industry and further exacerbate the global trade in
used cooking oil.
Combined with the announcement of new export
permits for a record 1.2 million tonnes of SAF,77
China is gearing up to become a leading SAF
export market, complementing its already thriving
export-orientated fuel feedstock market and
supporting the development of its domestic
biofuel industry.
Singapore
In Singapore, the government has set a 1% SAF
target for 2026, with the goal to raise this target
to 3-5% by 2030. To tackle price volatility in the
nascent SAF market, a levy will be implemented
from October 2026 to pay for centralized
procurement of SAF, aggregate demand and
provide cost certainty to air transport users. The
collected levy will be used to procure the SAF
needed to meet the 1% target; companies will be
able to use this central procurement platform for
voluntary SAF purchases too. The levy is calculated
on an origin-destination basis. For instance,
economy class passengers will pay S$1.00,
S$2.80, S$6.40 and S$10.40 to Bangkok, Tokyo,
London and New York respectively. A new body,
SAFCo, has also been set up to collect the levy on
behalf of the government.78
Australia
Similar to the US incentive approach, the Australian
government committed to a AU$1.1 billion low-
carbon liquid fuels production incentive through its
Cleaner Fuels Program, announced in September
2025. The programme will cover clean fuels used
in hard-to-abate industries, such as aviation,
heavy freight and mining; for example, it will offer
grants to domestic producers, including AU$33.5
million under the Sustainable Aviation Fuel Funding
initiative. The scheme is expected to be finalized in
early 2026, with applications opening mid-2026.79 Japan
In April 2025, Japan saw its first commercial SAF
plant commence operations, with several other
projects in the pipeline. Japan’s approach to SAF
policy combines fiscal support measures and
regulatory policies. The government is offering
capital investment support for large-scale SAF
facilities under initiatives such as GX Economic
Transition Bonds and tax credits for domestic SAF
production. On the regulatory side, Japan has set a
10% SAF target by 2030.
In parallel to these efforts, Japan’s Ministry of
Economy, Trade and Industry (METI) and Civil
Aviation Bureau (JCAB) announced the creation of
a task force in June 2025 aimed at tackling the high
cost of domestically produced SAF, to address the
disparity between producers’ costs and airlines’
ability to pay. This task force is expected to present
concrete recommendations and measures, which
will support Japan’s ambition to replace 10% of
conventional jet fuel demand with SAF by 2030.
Other Asia-Pacific regional developments
The Asia-Pacific region’s approach to SAF has
moved from aspirational goals to legally binding
mandates being established in several countries. In
addition to the measures above, Thailand recently
adopted a 1% mandate by 2026; meanwhile, India,
Malaysia, Indonesia and South Korea have all set
1% SAF mandates by 2027, while also establishing
their own SAF roadmaps.
Although the development of SAF policy in Asia-
Pacific is non-uniform – with some countries opting
for mandates, others for incentives and some with
roadmaps and legislation still in development – the
region has seen significant momentum gathering
behind SAF policies over the past year.
With European mandates kicking off in 2025, Asian
SAF production and feedstocks have significantly
contributed to SAF volumes supplied in Europe
to date. In 2024, Europe imported 69% of the
feedstocks used for its SAF – with 38% coming
from China alone – and also imported 40% of its
refined SAF.80 Growing interest in sustainability
and the economic opportunities associated with
exporting fuels and feedstocks to Europe have
contributed to the spike in measures from policy-
makers in Asia-Pacific. However, the increasing
prioritization of these feedstocks and fuels for
domestic use in Asia-Pacific raises questions
around Europe’s ability to keep importing such fuels
over the long term. With European
mandates kicking
off in 2025, Asian
SAF production
and feedstocks
have significantly
contributed to SAF
volumes supplied
in Europe to date.
Global Aviation Sustainability Outlook 2026
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