Incentivizing the Adoption of Sustainable Aviation Fuel (SAF) in Business Aviation

The aviation industry stands at the cusp of a sustainable revolution, with Sustainable Aviation Fuel (SAF) being the torchbearer. For business aviation operators, the transition to SAF is not just an environmental imperative but also an economic benefit of using sustainable aviation fuel. Government incentives for SAF play a pivotal role in this transition. This article delves into the economic benefits that underscore the importance of SAF for business aviation operators.

Understanding SAF and Its Economic Implications

Sustainable Aviation Fuel (SAF) benefits represents a significant advancement in aviation technology, offering a cleaner-burning alternative to conventional jet fuel derived from finite fossil resources. SAF is produced from various sustainable feedstocks, such as waste oils, fats, green and municipal waste, non-food crops, and can also be synthesized through carbon capture methods directly from the atmosphere. These feedstocks are considered sustainable because they do not compete with food production, water resources, or contribute to deforestation.

 

Technically, SAF can reduce CO2 emissions by up to 80% over its life cycle compared to traditional jet fuel. This reduction is achieved because the carbon emitted during the combustion of SAF is partially offset by the carbon absorbed by the biomass from which it was produced during its growth phase. Moreover, SAF is designed to be a drop-in fuel, meaning it can be blended with conventional jet fuel and used without modifications to existing aircraft engines or fuel distribution infrastructures.

Global Adoption of Sustainable Aviation Fuel (SAF)

The adoption of SAF is gaining momentum worldwide. According to the International Energy Agency (IEA), the demand for SAF is expected to increase significantly, with a notable rise in planned capacity across the United States, Europe, and other regions. The International Air Transport Association (IATA) reported that SAF production tripled in 2023, reaching over 600 million liters, indicating a growing trend in the industry.

Statistical Analysis Cost of SAF vs Jet Fuel

Cost of SAF vs Jet fuel has historically been a barrier to its widespread adoption. In 2020, the price of conventional jet fuel was approximately $0.5 per liter, while SAF was priced at more than double, around $1.1 per liter. However, the gap is expected to close as production technologies mature and scale. The International Air Transport Association (IATA) projects that SAF could contribute around 65% of the emission reductions required for the aviation industry to reach net-zero CO2 emissions by 2050. This will necessitate a substantial increase in production to meet the growing demand, with the most significant acceleration anticipated in the 2030s as policy support becomes global, SAF achieves price parity with fossil kerosene, and credible carbon offsets become scarcer.

 

To facilitate this transition, IATA advocates for harmonized policies across countries and industries that are technology and feedstock agnostic. SAF incentives should be implemented to expedite deployment, and while SAF is in the early stages of market development, mandates should be used cautiously and only as part of a broader strategy to enhance SAF production and reduce unit costs.

Government SAF Incentives for SAF Impact

The role of government policy in promoting SAF use is pivotal. Government SAF incentives are crucial for bridging the cost gap between SAF and conventional jet fuel. The European Union’s ReFuelEU Aviation initiative is a policy measure that mandates an increasing share of SAF in aviation fuel supplies, with a specific quota for synthetic aviation fuels. This policy is designed to boost economic benefits of using sustainable aviation fuel consumption and reduce aviation emissions.

Economic Benefits of Using Sustainable Aviation Fuel (SAF)

Economic benefits of using sustainable aviation fuel benefits are multi-faceted. In the United States, SAF producers can receive a tax credit ranging from $1.25 to $1.75 per gallon, depending on the greenhouse gas emissions reduction achieved. This incentive structure is vital for enhancing SAF’s market competitiveness and encouraging investments in sustainable fuel technologies.

Impact on Flight Operations and Maintenance

The use of sustainable aviation fuel benefits for operators. Studies have shown that SAF can reduce particulate matter emissions from jet engines by up to 70%, contributing to cleaner operations and potentially lower maintenance costs. Moreover, the European Union Aviation Safety Agency (EASA) has been actively involved in facilitating the uptake of SAF within the aviation industry.

SAF Programs & Policies (By Region/Organization)

Program/Policy	Region/Organization	Key Provisions
ICAO CORSIA	Global (ICAO)	Carbon Offsetting and Reduction Scheme for International Aviation. Covers international flights (voluntary phase 2021–26; mandatory 2027+). Airlines must offset CO₂ emissions above a 2019 baseline; SAF can qualify as an eligible measure. (Operates at airline level globally.)
ReFuelEU Aviation (Reg 2023/2405)	European Union	Mandatory SAF blending. Fuel suppliers at EU airports must increase SAF: 2% of jet fuel by 2025, 6% by 2030, 20% by 2035, reaching up to 70% by 2050. A Book‑&‑Claim system is under study for flexibility. (Directly requires SAF use on flights within/departing EU.)
UK SAF Mandate	United Kingdom	Mandatory SAF quotas. Starts at 2% of jet fuel in 2025, rising linearly to 10% by 2030 and 22% by 2040. Certified SAF generation earns tradeable certificates (with cash value) to incentivize supply. (Business jets refueling in UK airports will contribute to these targets.)
Inflation Reduction Act (Sec 40B/45Z)	United States (Federal law)	SAF Blenders Tax Credit. Credits up to $1.25 per gallon of SAF (rising to $1.75 for advanced fuel) for fuels achieving ≥50% lifecycle GHG reduction. (Implementation guidance issued Oct. 2024.) (Encourages U.S. SAF production; lowers cost for operators buying SAF.)
Sustainable Skies Act (proposed)	United States (Congress)	Proposes additional SAF incentives, including a $1.50/gal production credit for US-made SAF (with strict GHG reduction criteria). Currently under consideration (no data yet). (If enacted, would further boost SAF supply and availability.)
FAST–SAF / FAST–Tech	United States (FAA)	Under the 2023 FAA reauthorization, FAST–SAF and FAST–Tech programs fund SAF development projects. (Aug 2024 saw ~$291 M awarded to 36 projects for SAF tech supply chains and low-carbon aircraft.) (U.S. goal: scale SAF production to 3 B gallons/yr by 2030.)
Japan SAF Roadmap	Japan (Min. Economy/Industry)	New regulation by 2024–25. Japan aims to cut aviation GHG 5% by 2030 versus 2019, largely via SAF. The goal implies ~10% SAF blending (50% GHG-reduction fuel) by 2030, with draft legislation expected in late 2024. (Domestic flights, including bizav, would use increasing SAF blends under future law.)

Future Projections for Sustainable Aviation Fuel (SAF) Development and Utilization

Future projections suggest a substantial increase in sustainable aviation fuel benefits production to meet the aviation industry’s goals. By 2050, it is estimated that millions of tonnes of SAF will be required annually to achieve net-zero carbon emissions targets set by the aviation sector. This growth is contingent on technological advancements and the scaling up of production facilities.

International Cooperation and Agreements on Sustainable Aviation Fuel (SAF)

International cooperation is pivotal for the widespread adoption of SAF. The International Civil Aviation Organization (ICAO) has established a global framework to promote SAF production and usage, aiming to reduce CO2 emissions in international aviation by 5% by 2030. Such agreements are essential for aligning global efforts towards sustainable aviation.

How Can Operators Be Incentivized To Use SAF

To incentivize operators to use SAF, financial mechanisms such as tax credits are employed. The role of government policy in promoting SAF incentives lowered the economic hurdles associated with transitioning to SAF and supported its integration into the aviation fuel mix. The U.S. Sustainable Skies Act, for example, proposes a credit starting at $1.50 per gallon for SAF with a 50% or greater lifecycle greenhouse gas savings, with higher rewards for greater reductions, up to a maximum of $2.00 per gallon.

 

At Just Aviation, we champion the adoption of Sustainable Aviation Fuel (SAF) within the business aviation sector. Government incentives for SAF are a significant factor in this endeavor. By working closely with flight crew, and our ground handling team, we facilitate the transition to more sustainable practices. Our global network of FBOs and Ground Handling Service providers plays a crucial role in making SAF a viable and attractive option for our clients.

FAQs

1. How much has SAF adoption grown recently in business aviation?

SAF use in business aviation remains a small share of total jet fuel, but growth is accelerating. Global SAF production roughly doubled in 2023, reaching 158 million gallons, and U.S. supply increased tenfold between 2021 and early 2024. Several major conventions and airport networks have started offering SAF blends on-site to encourage use. Industry surveys also show a nearly threefold increase in the number of business operators launching sustainability programs between 2023 and 2024.

2. What is the expected emissions reduction from using SAF?

Certified SAF can reduce lifecycle carbon dioxide (CO₂) emissions by up to 80% compared with traditional Jet-A fuel, depending on feedstock and production pathway. It also produces fewer particulates and sulfur oxides, improving local air quality around airports. These characteristics make SAF a primary contributor to aviation’s long-term net-zero target by 2050, as defined by the International Civil Aviation Organization (ICAO).

3. Is SAF compatible with existing aircraft and infrastructure?

Yes. SAF is a drop-in fuel, meaning it can be blended with conventional Jet-A and used in current aircraft engines without modification. It is certified under ASTM D7566 (specification for synthetic aviation fuels) and blended under ASTM D1655 (standard for Jet-A). No additional infrastructure changes are required at airports or fuel farms.

4. What is the “Book and Claim” system, and why does it matter?

The book and claim system allows operators to purchase SAF environmental attributes even if the actual fuel is consumed elsewhere. This enables business jet operators to financially support SAF production and claim corresponding carbon reductions, even when local SAF supply is unavailable. The system is increasingly recommended by associations like the European Business Aviation Association (EBAA) and the International Business Aviation Council (IBAC) as an effective short-term sustainability tool.

5. How can operators locate SAF supply points?

Sustainable Aviation Fuel (SAF) is increasingly available at major airports and fuel distribution hubs, particularly across North America and Europe. Industry associations are developing centralized databases and mapping tools to help operators identify certified SAF locations, while many use book-and-claim systems to maintain emissions reporting continuity when on-site supply is limited. Just Aviation assists business flight operators in identifying verified SAF sources, coordinating certified supply options, and ensuring smooth integration of SAF into flight operations with full regulatory and documentation compliance.

6. Is SAF usage mandatory for business aviation operators?

Direct mandates on business operators are rare, but indirect compliance requirements are increasing:

 

• Under the ReFuelEU Aviation Regulation (EU Regulation 2023/2405) and the UK SAF Mandate (2025), fuel suppliers (not operators) must blend minimum SAF percentages into aviation fuel.
• The ICAO CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) requires international operators to offset CO₂ emissions exceeding 85% of their 2019 baseline, with SAF use reducing offset obligations.
• In the United States, SAF use remains voluntary but is encouraged through tax credits and grant programs administered by the Federal Aviation Administration (FAA).

 

Thus, while not yet mandatory for operators, regulatory pressure and sustainability reporting expectations make early adoption increasingly advantageous.

7. What should an operator evaluate before integrating SAF?

Before adopting SAF, a flight operator should consider:

 

• Fuel access: Check SAF availability or nearby blending hubs.
• Supply contracts: Explore book-and-claim or long-term sourcing arrangements.
• Financial benefits: Review eligibility for government credits, rebates, or grants.
• Reporting and compliance: Align SAF documentation with carbon accounting standards (e.g., ICAO CORSIA Sustainability Criteria).
• Verification: Ensure suppliers provide certified lifecycle analysis and traceable sustainability documentation.

 

Taking these steps allows operators to integrate SAF seamlessly into operations while maintaining transparent environmental accountability.