METI subcommittee proposes 1%-5% SAF supply mandate in Japan for FY 2030-31 to FY 2034-35

A subcommittee at Japan's Ministry of Economy, Trade and Industry on Aug. 17 proposed a set of sustainable aviation fuel supply mandates, requiring companies to supply more than 1%-5% of domestic jet fuel consumption for international flights from fiscal year 2030-31 (April-March) to FY 2034-35.

The proposed SAF supply mandates marked a setback from the supply mandates proposed in FY 2024-25 for the five-year period, under which jet fuel suppliers were expected to supply volumes equivalent to at least 5% of the greenhouse gas emissions from jet fuel produced and supplied in Japan in FY 2019-2020.

The METI subcommittee said its proposal is intended to avoid imposing excessive burdens, adding that building public understanding will take time. It also said that the mandated volumes would be gradually expanded in line with Japan's basic policy to further promote SAF adoption, pointing to International Civil Aviation Organization targets that apply to international aviation.

Under the latest proposal, the SAF supply mandates would apply only to companies that supply 3,000 kiloliters (18,869 barrels) or more of jet fuel annually for international flights at seven airports with the highest international refueling volumes, according to documents presented at the Decarbonized Fuel Policy Subcommittee.

The proposed SAF supply mandates would require companies to supply at least 1% of domestic jet fuel supply volumes in FY 2030-31, at least 3% in FY 2031-32 and at least 5% in each fiscal year from FY 2032-33 through FY 2034-35.

Under the proposed SAF supply mandates, targets could be revised downward in cases of unavoidable circumstances, such as natural disasters, according to the documents. However, they would not be allowed to be revised downward due to facility problems, unsuccessful commercial negotiations with airlines or the cancellation or postponement of SAF plant construction projects.

The proposed SAF supply mandates refer to domestic supply volumes supplied for international flights at the designated airports: Narita International Airport, Haneda Airport, Kansai International Airport, Chubu Centrair International Airport, New Chitose Airport, Fukuoka Airport and Naha Airport.

The seven airports together refueled 8.17 million kl, or 51.39 million barrels, of jet fuel for international flights in FY 2024-25, accounting for 68.3% of Japan's total international jet fuel refueling volume, according to METI's survey of local refiners.

The latest proposed supply mandates contrast with the FY 2024-25 supply mandate proposal, which applied to jet fuel suppliers that supply at least 100,000 kl of jet fuel annually. It also did not specify whether SAF would be supplied for domestic or international flights, nor did it name any particular airports.

In the proposed FY 2024-25 SAF supply mandates, targets could be revised downward in the event of unavoidable circumstances, such as natural disasters. They could also be revised downward due to reduced production caused by facility problems, unsuccessful commercial negotiations with airlines or the cancellation or postponement of SAF plant construction projects.