Japan plans to mandate 5% SAF blend from 2030 with 7 airports, levy

Japan will require oil refiners and trading companies to supply sustainable aviation fuel at seven major airports from fiscal 2030, with blending ratios gradually increasing to more than 5% for international flights as the government seeks to cut carbon emissions from the aviation sector.

The Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism announced the plan July 24, following a public-private council meeting, according to multiple local media reports.

The mandate targets airports with high refueling volumes, including Narita and Haneda, where SAF must account for at least 1% of jet fuel supply in fiscal 2030, rising to at least 3% in fiscal 2031 and reaching 5% or more from fiscal 2032 through 2034.

"The aim is to encourage private sector investment decisions regarding SAF manufacturing facilities, thereby promoting its widespread adoption and contributing to the realization of a decarbonized society," the ministries said, according to reports.

SAF, produced from waste cooking oil, algae and wood chips, can reduce carbon dioxide emissions by up to 80% compared to conventional crude oil-derived jet fuel. However, procurement costs remain two to three times higher than traditional aviation fuel, presenting a key challenge for broader adoption.

User levy planned

To support airlines adopting SAF, the Ministry of Land, Infrastructure, Transport and Tourism plans to introduce a levy on international passengers departing from the seven designated airports starting fiscal 2030.

The fee will be calculated based on flight distance, with funds used to subsidize carriers and encourage SAF uptake.

The ministry will seek input from oil refiners and airline operators before finalizing the collection method by end-fiscal 2026. Options under consideration include adding the charge to existing airport usage fees or establishing a new tax.

The government has set a target of replacing 10% of aviation fuel consumption with SAF by 2030.

The new supply mandate follows similar moves in Europe, where the EU requires 6% SAF blending at airports within the bloc by 2030, rising to 70% by 2050. Some UK airports already subsidize SAF purchases through airport usage fees.

The ministries plan to finalize detailed system design by the end of fiscal 2026 (April-March) , with legislative amendments expected to follow. The public-private council, established in April 2022, has been examining cooperation measures and support policies for related companies based on international precedents.

Platts, part of S&P Global Energy, assessed SAF HEFA-SPK FOB Straits at $2,530/metric ton July 27, down $20/mt from July 24, tracking adjacent market information and maintaining the spread between the SAF FOB Straits and FOB China assessments at $20/mt.