Japan to Require 10% Sustainable Aviation Fuel Supply from 2030

Jiji Press

17:25 JST, May 27, 2023

TOKYO (Jiji Press) — The Economy, Trade and Industry Ministry said Friday it plans to require oil wholesalers to make sustainable aviation fuel, or SAF, account for 10% of their aviation fuel supply from 2030.

The move is aimed at promoting the use of SAF, which emits less carbon dioxide than conventional fuels, to accelerate decarbonization efforts in the aviation industry, which faces “flight shame” criticism for its notoriously high emissions compared with other modes of transportation such as rail.

The ministry unveiled the SAF requirement plan at a meeting of a public-private council for SAF promotion. The ministry will consider introducing a penalty for noncompliance. It aims to implement the requirement next spring.

Made from waste cooking oil and plants, SAF produces 60% to 80% less CO2 emissions than conventional aviation fuels.

SAF is considered necessary to meet an emissions reduction target set by the International Civil Aviation Organization.

All Nippon Airways and Japan Airlines have set a target of increasing the proportion of SAF in their fuel consumption to 10% in fiscal 2030.

However, the global supply of SAF is still low. Japan has not developed domestic SAF production capacity, and securing a stable supply of the fuel is an urgent task for the country.

The government estimates that domestic demand for SAF will reach at least 1.71 million kiloliters in 2030.

To support the development of stable SAF supply systems, the ministry will consider having the Japan Organization for Metals and Energy Security (JOGMEC) extend investment and loan guarantees to overseas SAF material and logistics infrastructure development projects.

It will also consider reducing petroleum and coal taxes and import duties on SAF from overseas from 2025.