Last week, South Korea announced its new SAF roadmap after postponing the start of its mandate from 2025 to 2027. Exhibit 1 highlights several key elements, including (1) SAF qualification criteria, (2) SAF blending targets and timelines, (3) compliance requirements and penalties, and (4) policy incentives and support measures.
It is a comprehensive approach that relies on demand (3–5% by 2030 and 7–10% by 2035) and supply (in proportion to jet fuel sales with shortfalls penalized) mandates, with some flexibility given the uncertainties in the SAF market. Further, the South Korean roadmap anchors its mandate in specific GHG reduction outcomes. Finally, there are policy incentives for driving both supply and demand, including the potential for airfare premiums.
Exhibit 1. Key elements of Korea’s recent SAF blending mandate roadmap.
This roadmap further strengthens ADI’s view that Asia Pacific has emerged as a major player in advancing sustainable aviation fuel (SAF). Several facilities are already producing SAF, and many more are under construction or in advanced planning stages. As mentioned in our previous blog, “A Review of SAF in Asia Pacific”, these developments are driven by SAF mandates announced in various Asia Pacific countries, along with efforts by airlines and industry players to accelerate SAF adoption.
Several other Asia Pacific countries also have a patchwork of policies, and Exhibit 2 provides an overview of the SAF mandates in the Asia Pacific region, with approximate timelines and blending targets that vary by each country.
Exhibit 2. An overview of introduced SAF targets in Asia Pacific countries.
Beyond government mandates, many airlines have set their own SAF targets, alongside members of the Association of Asia Pacific Airlines committing to 5% SAF use by 2030. This goal is supported by a growing number of SAF offtake agreements and new production projects, some of which were featured in our past editions of ADI’s SAF Tracker. As SAF markets grow across the Asia-Pacific region, feedstock availability and production capacity often take center stage in discussions. However, a less visible yet increasingly critical challenge is emerging: the rising costs of certification and compliance. Producers integrating new feedstocks into commercial SAF supply chains require both agronomic investments and robust sustainability documentation, adding to compliance complexity and cost uncertainty, especially as the regulatory framework remains fragmented in the Asia Pacific. For instance, at the recent Asia-Pacific Petroleum Conference (APPEC) 2025, industry players highlighted that certification and verification costs are becoming key drivers of SAF margins. Additionally, airlines reported paying ~$3 billion in premiums to meet Europe’s carbon pricing and SAF mandates. This suggests that inconsistent national policies could lead to higher costs for airlines, ultimately slowing the growth of Asia Pacific’s still-nascent SAF industry.
Therefore, the growing adoption of SAF in Asia Pacific emphasizes the need for robust and coordinated government policies to unlock the region’s full potential. Although challenges remain, the path forward is clear. SAF production is accelerating, airlines are committed, and investors are mobilizing. Asia Pacific governments must ensure their SAF policies align with global frameworks to avoid fragmentation that could burden airlines and slow the sector’s decarbonization.
Subscribe to ADI’s SAF Tracker to stay tuned.
– Christine Ho
About ADI Analytics
ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
Subscribe to our newsletter or contact us to learn more.
