The global aviation sector is under immense pressure to decarbonize, with Sustainable Aviation Fuel (SAF) at the center of this transformation. SAF is rapidly evolving from a niche innovation to a core pillar of aviation’s climate strategy. Why SAF demand accelerates now is due to a convergence of regulatory mandates, climate finance initiatives, and public scrutiny of airline emissions.
Over the past few months, a series of policy decisions, market shifts, and technical milestones have reaffirmed SAF’s strategic relevance—while also revealing persistent barriers to cost parity, feedstock supply, and global policy alignment. From Brazil’s recognition at the UN level to Turkey’s new blending mandates and the EU’s expanded subsidy frameworks, momentum is building across multiple fronts. These moves show how SAF demand accelerates now despite rising costs, as governments and industry push forward despite economic headwinds.
Mandates Multiply, Frameworks Tighten
In Turkey, the government now tells airlines to start using a small amount of SAF. The goal is to reduce pollution from planes by 5% by the year 2030. Turkey’s fuel companies are now making more SAF to meet this rule.
“Regulatory ambition is finally catching up with the scale of the climate challenge,” said Henrik Erämetsä, Director of Sustainable Aviation at Neste. “National mandates, like Turkey’s, are encouraging signs that SAF is becoming a global priority—not just a European or American one.”
In Europe, the EU and UK have activated financial support programs to support SAF adoption. These include subsidies of €0.50/liter for bio-based SAF and €6/liter for synthetic e-fuels, helping airlines meet mandatory blending thresholds of 2% by 2025, rising to 6% by 2030.
A significant geopolitical milestone came on June 27, when Brazil received ICAO recognition for its multicropping system. ICAO acknowledged that cultivating soy and corn on the same land leads to lower land-use change emissions, reducing the carbon intensity score of Brazilian SAF feedstocks
SAF Demand Accelerates: Commercial Deployment
Some airlines are already using SAF in small amounts. Bangkok Airways, for example, is flying short routes with 1% SAF. This saves about 128 kilograms of CO₂ per flight.
In Germany, the company Deutsche Aircraft tested a new airplane fuel system that can use SAF. The test was successful, showing that more types of planes can fly with SAF in the future.
These efforts show that SAF deployment is no longer limited to major transatlantic carriers; it is now reaching regional operators and platform developers—broadening the infrastructure base and further proving why SAF demand accelerates now despite rising costs.
“Each SAF-powered flight—no matter how small the blend—is a signal that the market is taking shape,” said Lars Wagner, CEO of MTU Aero Engines
Market & Cost Dynamics
Right now, SAF costs a lot more than regular jet fuel. In Europe, prices have doubled, and airlines are spending billions more. Even with the cost, production is growing. This is another signal of why SAF demand accelerates now even amid supply chain and pricing constraints.
“The cost challenge is real, but the alternative—inaction—will be far more expensive,” stated Willie Walsh, IATA’s Director General. “We’re seeing incredible interest from airlines, but price volatility remains a key barrier,” added Jo Dardenne, Aviation Director at Transport & Environment.
The SkyNRG/ICF 2025 SAF Market Outlook reports that global SAF production capacity has doubled since 2023. By the end of 2025, the world could make 2 million tons of SAF. But most of this fuel still comes from used cooking oil and animal fats. This could cause problems if we run out of these materials.
To grow even more, the world needs to use other sources like trash, corn, or even fuels made from air and water (called e-fuels). New types of SAF need more support and investment.
“Achieving scale requires not just technology, but policy coherence and financial de-risking,” emphasized Dorine Bosman, Chief Investment Officer at SkyNRG. “We need to unlock demand through confidence, not just compliance.”
SAF Demand Accelerates: What Lies Ahead
As demand for SAF accelerates in response to regulatory mandates and climate commitments, the sector now faces the critical challenge of scaling production while maintaining sustainability, affordability, and geopolitical balance. To bridge the gap between today’s 2 million tonnes of global output and the 300 million tonnes projected to be needed by 2050, a coordinated approach is required across five priority areas:
1. Feedstock Innovation & Diversification – The SAF sector must move beyond HEFA-based feedstocks by commercializing alternatives such as ATJ, Fischer–Tropsch, Anaerobic Biodigestion and PtL pathways. Policy recognition, like ICAO’s recent approval of Brazil’s multicropping, can accelerate feedstock approval and availability globally.
2. Regulatory Harmonization – A globally consistent framework for lifecycle carbon accounting is needed to reduce investor uncertainty and ease cross-border compliance. Alignment between ICAO, EU, and U.S. standards will be pivotal.
3. Capital & Risk Support – Scaling production requires financial de-risking tools such as contract-for-difference schemes, long-term offtake agreements, and access to blended finance through green bonds or climate funds.
4. Price Transparency – SAF markets lack pricing benchmarks, limiting liquidity and planning. Establishing spot and futures markets and third-party registries will drive investment confidence.
5. Broader Use Cases – Expanding SAF into segments like business aviation, helicopters, defense, and logistics can grow demand and stabilize market volumes.
Conclusion
In just a few months, SAF has made big steps forward. New rules, government support, and airline tests all show that SAF is growing fast. Even with high costs and challenges, the future of SAF looks strong. Why SAF demand accelerates now is because the world knows it must act.
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