Decarbonising air travel in Asia-Pacific with SAF

The Asia-Pacific region is the world’s fastest-growing aviation market. Discover how the region is balancing the need for vital connectivity with a commitment to addressing climate change impacts – and what Airbus is doing to help accelerate it.

A growing aviation market, a growing need to decarbonise

The Asia-Pacific region is home to 60% of the world’s population, with many people living in island nations both large and small. The most straightforward way to connect people and goods across such a wide, dispersed area is by air.

Beyond geography, the growth of the middle class over the last 50 years, with access to greater disposable income, has opened up new opportunities for business and tourism in the region. After experiencing the fastest passenger growth in the world in 2025, Asia-Pacific is set to double passenger numbers by 2043 (IATA, Asia-Pacific's Air Travel Market: Opportunities and Challenges).

In short, air transport is a critical means of connecting people, economies and cultures in the region.

However, the same geography that necessitates air travel also makes the region particularly vulnerable to climate change impacts, particularly rising sea levels and extreme weather. Asia-Pacific is therefore a perfect example of the need to decarbonise aviation: a region where air travel is a vital lifeline but where the effects of climate change are already evident.

Fortunately, the region is ripe with opportunities to scale-up sustainable aviation fuel (SAF) production.

SAF in Asia-Pacific: From ambition to action

SAF is a critical lever to reduce carbon emissions, and the Asia-Pacific region has a unique opportunity to lead this charge. The region is forecast to produce 40% of the world’s sustainable aviation fuel by 2050 (IATA, Global Feedstock Assessment for SAF Production: Outlook to 2050), and governments are mobilising to put in place targets, mandates and levies to spur SAF uptake.

Governments across the region are already laying the groundwork. Singapore has introduced a SAF levy for all passenger and cargo flights departing the country from 1 October 2026, which will support its 1% SAF target by the end of the year. Meanwhile, Japan has set the ambition of 10% SAF usage by 2030; South Korea has put in place a SAF blending mandate of 1% from 2027, with a long-term roadmap of up to  10% SAF usage by 2035; and Thailand has signed an MoU with airlines to set the ambition for SAF usage, aiming to publish a mandate soon. Further south, the Australian government has committed AUD 1.1 billion in production incentives for low-carbon liquid fuels including SAF, and Indonesia has proposed a 1% SAF blend by 2027.

Airbus is also playing its part to actively support the emergence of SAF production. Progress requires cross-industry collaboration, and accordingly Airbus has engaged in several impactful partnerships and investments in the region. From MOUs signed with feedstock owners like CP Group in Thailand and fuel producers like Pertamina in Indonesia and CNAF in China, to partnering with authorities like the Asia Pacific Sustainable Aviation Centre, Airbus is collaborating with players across the regional SAF value chain to accelerate production and harmonise standards and supply chains. This also includes airlines.

In 2022, Airbus partnered with Qantas to co-invest USD 200 million in a fund to kickstart the Australian biofuels industry, which has resulted in an investment in an alcohol-to-jet facility being developed by Jet Zero Australia and more recently an investment with Australian venture capital fund Climate Tech Partners. To further accelerate the development of SAF production in the region and globally, in October 2025 Airbus and Cathay Group  announced a joint investment of up to USD 70 million.

While SAF is taking its place today, alternative energy sources will also be part of the solution for the future. Several regional airlines, airports, energy providers and other industry players have joined the Hydrogen Hubs at Airports network, including Changi Airport in Singapore and Kansai Airports and Kawasaki Heavy Industries in Japan, to study the infrastructure required for liquid hydrogen hubs.

People at the centre

With SAF as a key decarbonisation lever, Airbus believes that the energy transition necessary to scale up SAF today and innovate for the future should put people at the centre. Given the broad socioeconomic diversity and varying levels of development in the region, Asia-Pacific is a prime place to demonstrate the possibilities for a just transition.

Leveraging co-benefits could open opportunities to build community resilience. For example, the collection of agricultural residues for SAF feedstock instead of burning them could make a difference in reducing air pollution, and investment in production facilities can lead to remote community revitalisation. Furthermore, building up SAF production capabilities boosts regional energy sovereignty, and in turn boosts regional resilience.