Material Insights · Understanding the Material World

Renewable diesel and SAF: Regulation

Handled just like diesel and kerosene

What this tab covers How it is regulated and what could disrupt supply: hazard classification, rules in the EU, US and India, anti-dumping duties and other trade measures, and supply-risk notes.

Hazards

ClassificationUN numberKey risks
flammable liquid category 3; aspiration hazard (as for diesel and kerosene)UN1202 (HVO); UN1863 (SAF blends)Similar to fossil diesel and jet; lower aromatics make it less toxic.

Main rules

WhereRuleEffect
EUReFuelEU Aviation: 2% SAF from 2025, 6% from 2030, with an e-SAF sub-mandate; crop-based fuels excludedguaranteed SAF demand; caps on non-Annex IX wastes
EURED III transport targets and Annex IX feedstock listsreward waste-based HVO
USRFS (1.7 RINs per gallon of renewable diesel), California LCFS, 45Z clean fuel credit (imports excluded), half RINs for imports from 2028credit stack drives US output
GlobalICAO CORSIA: offsetting from 2024 with credit for CORSIA-eligible fuels using default life-cycle valuesSAF counts against airline offset obligations
UKSAF mandate from 2025 with e-SAF from 2028SAF demand

India

RuleEffect
SAF blending for international flights: 1% from 2027, 2% in 2028 and 5% by 2030 (Civil Aviation Ministry, 30 Jul 2026, via S&P Global; national SAF policy still in draft)demand of the order of tens of kt in 2027
National Policy on Biofuels 2018 (amended 2022) covers drop-in fuels (indicative)framework for OMC SAF projects

Trade measures

  • EU duties of 8-18% on Indonesian biodiesel, HVO and SAF extended five years (Argus, Mar 2026)
  • US 45Z excludes imported fuels and feedstocks; RFS half RINs for imports from 2028

Supply risk

Supply is concentrated in a few large plants and companies, and feedstock is limited by the world's waste fat supply. Policy risk is high: a change in credits can halve margins within a year.