India Tightens Aviation Emissions Tracking as Sustainable Fuel Policy Advances

India is moving closer to a more structured aviation decarbonization regime, combining tighter emissions monitoring with new requirements for sustainable aviation fuel as the country prepares for international carbon obligations beginning in 2027.

The Directorate General of Civil Aviation, or DGCA, is expected to introduce requirements for Indian and foreign airlines operating international services through the country to report data covering at least 90% of their annual carbon emissions associated with operations involving Indian international airports. The proposed measure is intended to establish more consistent emissions accounting across operators and reduce the risk of unequal treatment between airlines.

The initiative forms part of India's preparations for the Carbon Offsetting and Reduction Scheme for International Aviation, known as CORSIA. Developed by the International Civil Aviation Organization, CORSIA requires participating operators to monitor emissions from international aviation and address emissions above the scheme's applicable baseline through eligible fuels, carbon credits and other measures.

CORSIA's mandatory phase begins on 1 January 2027, giving India only months to finalise the regulatory, reporting and fuel infrastructure needed for implementation. The Ministry of Civil Aviation has consequently been coordinating work involving aviation regulators, oil companies, airports and other government departments.

SAF Becomes Central to India's Aviation Strategy

Sustainable aviation fuel, or SAF, has emerged as one of the main elements of that strategy.

India has established indicative SAF blending targets for aviation turbine fuel used on international flights of 1% in 2027, 2% in 2028 and 5% by 2030. These targets are intended to support CORSIA compliance while creating demand for a domestic low-carbon aviation fuel industry.

SAF can be produced from alternative feedstocks including agricultural materials, biogenic residues and waste streams. Unlike conventional fossil-based aviation turbine fuel, qualifying SAF can deliver substantial lifecycle greenhouse gas reductions depending on the production pathway and feedstock used.

A key advantage for airlines is that certified SAF can generally be blended with conventional aviation fuel and used within existing aircraft and airport fuel infrastructure without requiring major modifications to engines.

India took an important regulatory step in April 2026 by amending the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001. The change formally brought SAF-blended aviation fuel within the scope of the country's ATF regulatory framework and recognised both co-processed SAF and SAF blended with conventional fuel under applicable Indian standards.

However, meeting fuel-quality standards alone will not be sufficient for CORSIA. Fuel used to reduce an airline's obligations under the scheme must also meet CORSIA sustainability requirements and qualify as CORSIA Eligible Fuel.

This makes certification and traceability important alongside actual production capacity.

National SAF Registry Under Development

A high-level meeting chaired by Civil Aviation Minister Ram Mohan Naidu on 29 July reviewed India's progress on SAF production, certification, supply chains and CORSIA compliance.

Participants included the Ministry of Civil Aviation, Ministry of Petroleum and Natural Gas, Ministry of Environment, Forest and Climate Change, DGCA, Airports Authority of India, Bureau of Indian Standards, Bureau of Energy Efficiency, oil marketing companies, airlines and airport operators.

Officials discussed the development of a national SAF registry designed to provide end-to-end traceability across the fuel supply chain. They also reviewed accounting, monitoring and reporting systems that would need to conform with ICAO and CORSIA requirements.

Such infrastructure will be important because aviation decarbonization increasingly depends on being able to verify not only how much alternative fuel is supplied but also its origin, production process, sustainability characteristics and lifecycle emissions.

India is additionally examining the development of a CORSIA-compatible domestic carbon-market framework and processes for issuing the authorizations required for participation in the international system.

For airlines, this could translate into considerably more detailed carbon-management requirements. Operators may need stronger internal data systems, verification procedures and coordination with airports and fuel suppliers to ensure that emissions and SAF use are accurately recorded.

Domestic Production Becomes the Next Challenge

India's immediate difficulty is ensuring that sufficient SAF is commercially available before the first blending requirement takes effect.

Oil marketing companies have several production projects under development, while the government is encouraging additional private-sector investment. Authorities have been reviewing refinery readiness, production schedules, certification processes and the logistics required to deliver fuel to airports.

The government has said its immediate priority is achieving the initial 1% SAF blending requirement in the most cost-effective way possible. Officials are particularly concerned about limiting additional costs for airlines and passengers.

That economic consideration could prove significant.

SAF generally remains more expensive to manufacture than conventional aviation fuel because production volumes are relatively small and qualifying feedstocks, technologies and certification systems add costs. Scaling domestic production could therefore be crucial to reducing supply constraints and limiting reliance on imported SAF.

The policy also has implications beyond aviation.

A large domestic SAF industry could create demand for agricultural residues, waste oils and other renewable feedstocks while generating investment opportunities across refining, logistics, fuel certification and carbon accounting. Depending on the production pathways ultimately selected, it could also link India's aviation strategy with its broader biofuel and circular-economy policies.

International Aviation Rules are Accelerating Change

India's SAF programme forms part of a wider international shift towards policies designed to reduce aviation emissions.

The European Union already requires SAF to account for 2% of aviation fuel supplied at covered airports, rising to 6% in 2030 and increasing thereafter. The United Kingdom has introduced a similar mandate, while other jurisdictions, including Japan, Singapore and the United States are pursuing mandates, targets or financial incentives to stimulate SAF production and consumption.

For India, however, the scale and growth trajectory of its aviation market make implementation particularly important. Building a domestic SAF supply chain could help the country comply with international aviation requirements while reducing future exposure to imported low-carbon fuels.

At the same time, the proposed 90% emissions-reporting threshold signals that fuel policy will be accompanied by significantly stronger carbon accounting.

The Ministry of Civil Aviation now describes India's draft SAF policy as being in its final stages. The coming months will therefore determine how blending obligations, emissions reporting, carbon-market mechanisms and the national SAF registry work together in practice.

For airlines and airport operators, preparations are likely to involve more than simply purchasing a different fuel. They will need systems capable of tracking emissions, verifying SAF claims and supplying regulators with increasingly detailed data.

For fuel producers, the opportunity is equally substantial but accompanied by demanding certification, sustainability and traceability requirements.

India's aviation decarbonization strategy is consequently shifting from targets towards implementation. Whether the country can establish adequate SAF production while maintaining credible carbon accounting and controlling costs will be one of the key tests as the 1 January 2027 CORSIA deadline approaches.

Source: sustainability.economictimes.indiatimes.com