The challenge of sustainable aviation fuel in Asia-Pacific's net-zero journey

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Sustainable aviation fuel - or SAF - is a hot topic in net-zero circles.

Here in the Asia-Pacific, the world’s fastest-growing aviation market, producers are aiming to make 1 million metric tons of SAF annually by 2030.

But that’s far short of what’s needed. 

Industry data shows the region would need 10 to 15 million metric tons per year to align with net-zero goals.

Experts say fragmented policies across countries, complex logistics, and limited feedstocks make it tough to secure investment, especially in early-stage projects.

Airlines argue they can’t shoulder the financial burden alone.

As a result, Asia currently produces less than 1% of global SAF - while Europe leads with around 85%. 

Costs remain high, too. 

As of July 3, Platts assessed the SAF spread in Asia at around $1,100 per metric ton - well above jet fuel and used cooking oil prices.

Industry participants say more government and bank support is essential, and public-private partnerships could be the key.

SAF remains a promising frontier - but there’s still a long runway ahead.