Regulations needed to spur airlines to use SAF, Japan oil refiners group head says
Japanese oil refiners believe concrete regulations and frameworks are needed to encourage airlines to use sustainable aviation fuel (SAF) and develop supply chains to support decarbonization efforts, the head of the industry lobby group said on Friday.
Cosmo Energy Holdings will launch Japan's first domestic production of SAF in April, a step toward the country's goal of replacing 10% of jet fuel with a cleaner alternative, though cost-cutting challenges remain.
Japanese refiners must supply SAF equivalent to 10% of their aviation fuel sales by 2030 as part of the country's efforts to combat climate change, which aligns with global initiatives to cut carbon dioxide (CO2) emissions from airplanes.
But no mandatory scheme has been set for airlines, and the oil industry believes a system similar to the one applied to suppliers is also needed for consumers.
"Regulations and frameworks on the supply side are relatively advanced, and we are making progress in building a supply chain," Shunichi Kito, president of the Petroleum Association of Japan, told a news conference. "But I believe that the user side, in this case, the airlines, also need similar regulations and frameworks," he added.
Kito, who is also the president of Japan's second-largest oil refiner, Idemitsu Kosan, emphasized energy transition toward carbon neutrality requires a transformation across the entire supply chain—from suppliers to off-takers—making it different from conventional production and sales activities.
"This will be a key test in developing a fuel supply chain toward carbon neutrality," he said, adding that achieving this will require understanding from airlines and consumers as well as government support in determining the appropriate cost-sharing proportions and implementation methods.
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