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SAVi Report

Thursday 10 April 2025 in Regulation , SAF

SAF Policy Map – Updates from Colombia, EU, Japan, Thailand, and more…

Justine El Amrani-Joutey
Analyst at Ishka
justine@ishkaglobal.com
Eduardo Mariz
Senior Analyst at Ishka
eduardo@ishkaglobal.com

This is the 3rd edition of the SAVI SAF Policy Map of policy efforts around the world to increase SAF uptake. This edition features 31 updates across 14 countries, including 16 new entries since October 2024. Of these, nine new policies are final or in force, while the remaining seven are either expected or in draft stages. The policy momentum continues across regions, with new financial incentives, production roadmaps, and demand-side frameworks announced or incoming in Australia, Canada, China, Colombia, the EU, Hong-Kong, India, Japan, Indonesia, Switzerland, Thailand, Turkey, the UAE, and multiple US states. This means that just under 80% of the world’s ASKs by country of departure are now under or soon expected to be covered by SAF demand and supply policies.

Major policy developments

Colombia

The Civil Aviation Authority of Colombia (Aerocivil) signed off on a SAF roadmap for the country on 16th January 2025, stating its ambition to produce at least 100 million gallons (0.3 Mt) of SAF by 2035, and 450 million gallons (1.4 Mt) by 2050.

Separately, on 2nd April 2025, Colombia’s lower house approved a new bill (proyecto de Ley 439 del 2024) “incentivising the production, distribution, and purchase of SAF in Colombia,” according to which the ministry of finance and public credit will "define and grant economic incentives for the development of projects, domestic production, blending activities, storage, transportation distribution and acquisition of SAFs, their eligible raw materials, and energy byproducts."

EU

The European Commission is currently (as of late March 2025) “planning and drafting with stakeholders” an e-SAF de-risking mechanism to be introduced under the Sustainable Transport Investment Plan (STIP) in mid-to-late 2025. The mechanism could draw inspiration from double auction-type systems like the German H2Global scheme – which they, as “heard from industry,” find to be the “most efficient way” to support first-of-a-kind (FOKA) e-SAF projects. In a double auction model, a government agency contracts with producers to buy green fuels at a fixed long-term price and then resells them to buyers via short-term competitive tenders.

Japan

On 28th March 2024, the 2024 Tax Reform Act was approved by the Japanese Diet, taking effect from 1st April 2024. The reform introduces a tax credit to promote domestic production of strategic goods, including SAF. Companies can claim a credit (JPY30 per litre) based on either the volume of SAF produced and sold (within 10 years of plan certification but before 31st March 2027) or the acquisition cost of production assets – whichever results in a lower credit. The maximum credit per year is capped at 40% of the corporate tax liability, with a four-year carry forward. Eligibility requires companies to meet wage growth or capital investment conditions, and the credit is authorised under the Industrial Competitiveness Enhancement Act.

The Japanese government since 2022 has also made several announcements stating it is targeting 10% SAF use by airlines in 2030. In March 2025, a Reuters report quoting local refiners noted that while they were expected to produce 10% SAF by 2030, airlines were not subject to firm SAF blending requirements. February 2025 presentations by the Japanese METI Ministry of Economy, Trade and Industry (METI) note that the government "will set the target supply volume of SAF” for 2030 as "equivalent to 5% or more" of the GHG emissions from jet fuel produced and supplied in Japan in 2019." The same presentation later qualifies "more" as a function of “jet fuel produced and supplied in Japan in FY2019 x SAF blending ratio 10% x GHG reduction effect 50%.”

The same METI presentation outlines several SAF support schemes, though it is unclear at what stage of implementation these are.

Thailand

Thailand is reportedly formulating a SAF-specific tax framework offering preferential tax rates compared to conventional fuel. This was reported by local media following a pubic address by deputy finance minister Paopoom Rojanasakul on 7th March 2025. The policy aims to position Thailand as a low-carbon aviation hub in ASEAN.

As of March 2025, however, legislation expected to mandate 1% SAF use by 2026 had not progressed. Local SAF producer Bangchak warned the same month that "urgent attention from policymakers" was needed to establish a clear national mandate.

US

Multiple US states have introduced or expanded SAF-related legislation since early 2025, reflecting growing subnational support for SAF production and uptake, despite federal policy uncertainty:

  • Arkansas introduced a 30% income tax credit on SAF production equipment through HB1303, aimed at supporting infrastructure investment.
  • Hawaii’s SB1120 proposes a Clean Fuel Standard starting in 2028. While aviation fuel is exempt from compliance, SAF is eligible to opt in to generate credits under a CI-based scoring mechanism. Targets include 10% CI reduction by 2035, rising to 50% by 2045.
  • Nebraska introduced SB937 in January 2024, and it was signed into law in April 2024, setting a tax credit to support the production of SAF within the state of 75 cents per gallon. SAF must meet a 50% GHG reduction threshold, the tax credit can increase by an amount equal to 1 cent for each percentage point by which the lifecycle GHG emissions reduction percentage of the SAF exceeds 50%. Eligible SAF producers would be able to claim the tax credit for five years.
  • Nevada passed Assembly Bill 481, establishing a $2.50/gal incentive for SAF produced and used in-state and $1.75/gal for SAF purchased in Nevada but produced elsewhere. A $10 million fund supports the program.
  • New York’s S1229 proposes a $1.25/gal SAF production credit, applicable to SAF made from US-grown feedstocks such as corn and soy.
  • Wisconsin introduced LRB-0538, which would provide a $1.50/gal production credit starting in 2028. SAF must be made from at least 90% renewable, non-petroleum, synthetic sources, with energy crop feedstocks grown in the U.S. While there is currently no SAF production in the state, the bill aims to stimulate new market opportunities for Wisconsin’s agricultural and timber sectors.

Ishka SAVi SAF Policy Tracker

For more details on the identified SAF policies, please use the interactive dashboard below. To view the dashboard in full, click the ‘Open in full screen’ button on the bottom-right corner.

Other notable SAF policy developments

  • Australia allocated AU$250 million ($157m) to low-carbon liquid fuels under the AU$1.7 billion Future Made in Australia Fund.
  • Hong Kong announced in its annual Policy Address plans to set a SAF usage target in 2025 and promote new energy development. The Hong Kong Sustainable Aviation Fuel Coalition (HKSAFC) called for a levy and subsidy scheme to bridge the SAF cost gap.
  • India lowered excise duty on blended aviation turbine fuel (ATF) for regional carriers under the UDAN regional airport development scheme to 2%, down from 11%.
  • The UK confirmed in January 2025 that its SAF Revenue Certainty Mechanism (RCM) will proceed using a Guaranteed Strike Price model, with first contracts expected in 2026.

Tags: Colombia, EU, Japan, SAF incentives, SAF policy, SAF Policy Map, Thailand, US

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