Tokyo: Japanese oil refiners are urging the government to establish concrete regulations and frameworks to encourage airlines to use sustainable aviation fuel (SAF) and develop supply chains that support decarbonization efforts, according to Shunichi Kito, president of the Petroleum Association of Japan (PAJ). Kito, who also heads Idemitsu Kosan, Japan’s second-largest oil refiner, emphasized the need for a balanced approach that includes both suppliers and consumers in the transition to cleaner energy, reports Reuters.
Cosmo Energy Holdings is set to launch Japan’s first domestic SAF production in April, marking a significant step toward the country’s goal of replacing 10% of jet fuel with sustainable alternatives by 2030. This initiative aligns with global efforts to reduce carbon dioxide emissions from aviation. However, challenges remain, particularly in reducing costs and ensuring widespread adoption.
Under current regulations, Japanese refiners are required to supply SAF equivalent to 10% of their aviation fuel sales by 2030. However, there are no mandatory schemes for airlines to use SAF, creating a gap in the supply chain. Kito highlighted that while progress has been made on the supply side, similar regulations and frameworks are needed for airlines to ensure a cohesive transition.
“Regulations and frameworks on the supply side are relatively advanced, and we are making progress in building a supply chain,” Kito said during a news conference. “But I believe that the user side, in this case, the airlines, also need similar regulations and frameworks.”
Kito stressed that achieving carbon neutrality requires a transformation across the entire supply chain, from suppliers to end-users, making it fundamentally different from traditional production and sales activities. “This will be a key test in developing a fuel supply chain toward carbon neutrality,” he said.
He also called for greater understanding from airlines and consumers, as well as government support in determining appropriate cost-sharing proportions and implementation methods. The transition to SAF is not just a technical challenge but also a financial one, requiring collaboration across industries and stakeholders.
The push for SAF adoption reflects Japan’s broader commitment to combating climate change and aligning with global decarbonization goals. As the aviation industry seeks to reduce its carbon footprint, the development of a robust SAF supply chain will be critical to achieving these objectives.
