KPMG India Highlights Need for Coordinated Approach and Funding to Advance Sustainable Aviation Fuel Use

The Urgency of a Unified Approach to Sustainable Aviation Fuel in India

India’s aviation sector is rapidly expanding, making it essential to adopt Sustainable Aviation Fuel (SAF) to meet environmental goals and strengthen energy security. KPMG India stresses the importance of a cohesive national strategy that tackles critical barriers in feedstock supply, production scale, and economic viability of SAF to truly transform the industry and align with net-zero ambitions.

Current Challenges in Scaling Sustainable Aviation Fuel

The journey to making SAF mainstream in India faces several hurdles despite the country’s strong agricultural landscape. The three core challenges include:

• Feedstock availability: Developing a reliable and sustainable supply chain remains complex.
• Production scalability: Expanding bio-refinery infrastructure to meet demand.
• Cost competitiveness: Achieving price parity with conventional jet fuel is key to broad adoption.

Without concerted efforts from multiple stakeholders — airlines, refiners, regulators, and investors — the case for SAF lacks economic strength. That’s why policy intervention and financial support can’t be taken lightly.

Recommended Policy and Financial Frameworks

KPMG India proposes a multi-pronged approach to overcome these barriers:

Drawing on lessons from the European Union and the U.S., where mandates and subsidies have spurred production, India could tailor these tools to fit its unique domestic market and boost private sector interest.

Building Efficient Supply Chains and Regional Clusters

Establishing regional production clusters stands out as an efficient method to lower logistics costs and create a streamlined supply ecosystem. Coupling major airports, fuel producers, and logistics partners into dedicated corridors may enhance distribution systems and operational productivity—an aspect that would interest airport taxi and transfer services, as they rely on sustainable, cost-effective fuel solutions to serve environmentally conscious customers.

Technology and Innovation: Paving the Way Forward

Technological advancements in sophisticated production paths like hydrogenated esters and fatty acids (HEFA), alcohol-to-jet, and Fischer-Tropsch synthesis are promising to revolutionize SAF production. Collaborations between refineries, research institutions, and global tech innovators could empower India to localize these skills, creating valuable knowledge capital and driving down costs.

Funding Sustainability: Incentivizing Institutional Investment

The capital-intensive nature of bio-refineries mandates innovative financing. Options such as green bonds, climate funds, and blended financing are instrumental in attracting institutional investment. Both public and private players must engage for the sector to thrive. As the Indian government reinforces sustainability with programs like the “Green Airports” initiative, creating an enabling investment environment becomes all the more critical.

Potential Impact on the Aviation and Transfer Industry

Increasing SAF adoption will directly shape the future of air travel, influencing ticket prices and the overall carbon footprint of aviation services. For ground transportation providers, including taxis and airport transfers, this transition signals a future of fuel options that may extend into biofuels for vehicles, enhancing sustainability for connecting services around airports and cities.

Why It Matters: A Global and Local Perspective

The global aviation landscape is tightening sustainability standards amid growing environmental awareness. India’s proactive engagement in SAF production could position it as a regional powerhouse in clean energy for aviation, strengthening its aviation market competitiveness while contributing to global net-zero targets.

Key Takeaways and the Role of LocalsRide in Sustainable Travel

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Conclusion: A Forward-Thinking Outlook for Aviation and Transfers

To sum it up, scaling up Sustainable Aviation Fuel in India requires a coordinated policy and investment framework addressing feedstock, production, and cost barriers. Leveraging technology, regional cluster models, and innovative financing will be instrumental to success. This ambitious shift will also influence the broader travel and transit ecosystem, including taxi and transfer services, nudging the entire sector toward sustainability.

LocalsRide.com exemplifies the kind of modern, customer-centric platform that complements this vision by offering transparent, reliable booking options for transfers and rides worldwide. With an eye on evolving market trends and traveler needs, it stands ready to facilitate seamless journeys to any destination, connecting airport, city, and beyond with ease.