Japan is planning to implement a new regulation that will require 10% sustainable aviation fuel (SAF) use from 2030 for international flights using Japanese airports, as reported by Nikkei Asia on May 25. The Ministry of Economy, Trade, and Industry (METI) will soon submit a proposal to a council composed of members from the public and private sectors. The amendment to the existing Energy Supply Structure Upgrading Law is set to be rolled out by March of next year, mandating that oil wholesalers ensure that 10% of aviation fuel they sell for international flights is SAF. The METI is also considering penalties for wholesalers that fail to meet the specific threshold.

SAF is made from plants and waste oil, and it is manufactured in factories equipped with carbon-absorbing facilities. Compared to traditional fossil fuels, it emits 70% to 90% less carbon dioxide (CO2), although it costs two to five times more. As alternative options like electrification or hydrogen-based fuels are not currently viable for aviation, SAF is seen as a crucial element in decarbonizing the aviation sector. Japan has set a national target to reach a 10% share of SAF in its aviation fuel consumption by 2030. By establishing the 10% threshold for SAF supply and consumption, Japan aims to accelerate the reduction of SAF costs to a level comparable to conventional jet fuel. Last month, Finnish oil refining firm Neste [NESTE:FH] entered into partnerships with Japan’s ITOCHU [8001:JP] and Fuji Oil Company [5017:JP] to supply SAF to major airlines All Nippon Airways [9202:JP] and Japan Airlines [9201:JP].

Sources:

https://asia.nikkei.com/Business/Transportation/Japan-to-require-overseas-flights-use-10-sustainable-fuel

https://asia.nikkei.com/Business/Transportation/Japan-targets-10-sustainable-jet-fuel-for-airlines-by-2030

https://www.neste.com/releases-and-news/renewable-solutions/neste-itochu-and-fuji-oil-supply-sustainable-aviation-fuel-all-nippon-airways-and-japan-airlines