Article

Asia's sustainable aviation fuel (SAF) production capacity is projected to reach 1.6 million metric tons per year by 2026, while mandated demand is only 380,500 mt/year. This disparity is expected to leave the region structurally long in SAF through at least 2030.

Current policies in Asia are mostly voluntary, with Singapore targeting a 1% SAF use by 2026, South Korea planning a 1% blending mandate from 2027, and Japan aiming for 10% SAF by 2030. China, the largest aviation market in the region, has a modest SAF consumption target of 50,000 mt by 2025.

Despite this, Asia's SAF output is anticipated to grow by 33% year-on-year, primarily directed towards Europe, where binding mandates are stronger. Companies like DHL are driving early SAF adoption with decarbonization commitments, while SAF prices have increased in response to EU mandates.