A new report released by the Korea Institute for Energy Economics and Financial Analysis (KEEFA) highlights the importance of developing a domestic sustainable aviation fuel supply chain and addressing the associated challenges and risks for South Korea to capitalise on market opportunities.
South Korea, the world’s largest exporter of aviation fuel, has implemented an SAF mandate, effective from August 2024, requiring a minimum blend of 1% SAF by 2027 for international flights.
Michelle (Chaewon) Kim, author of the report and IEEFA’s expert on energy finance in Korea, said the requirement is an important step in reducing the aviation industry’s contribution to global greenhouse gas (GHG) emissions, which account for 2-3 per cent of the world’s total GHG emissions.
However, delayed domestic supply uptake and unsustainable feedstock use and production pathways could pose challenges, hindering the country’s SAF market leadership and decarbonisation potential.