Article

The Japanese government plans to subsidize Sustainable Aviation Fuel (SAF) purchases by airlines, requiring passengers to pay an additional charge while mandating oil refiners to blend SAF into aviation fuel. This initiative aims to promote domestically produced SAF, which can reduce carbon emissions by up to 80%, with a policy framework expected by fiscal 2026. Japan will draw on subsidy models from Italy and the UK, targeting a 6% SAF blend by 2030 and 70% by 2050, while also supporting capital investments and collaboration for used cooking oil recovery.