Calls grow to increase subsidies for production, use of sustainable jet fuel

The government has been urged to take additional measures to mandate the use of sustainable aviation fuel (SAF) on all international flights departing from domestic airports. As both oil refiners and airlines face the inevitability of higher costs to produce and use the jet fuel, made from used cooking oil and other renewable energy sources, calls are intensifying for the government to offer tax credits and expanded subsidies to companies working to lower carbon emissions in aviation. In September, the government announced a minimum blending ratio of 1 percent SAF on all outbound flights beginning in 2027, with plans to raise the requirement to 3 to 5 percent by 2030 and 7 to 10 percent by 2035. At the same time, it promised several incentives and support measures to accompany the mandate. The Ministry of Trade and Industry pledged to fund up to 25 percent of facility investment costs and up to 40 percent of research and development costs, while the Ministry of Land, Infrastructure and Transport committed to reduce facility usage fees by 500 million won ($353,000) at Incheon Internation