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
| Classification | UN number | Key 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
| Where | Rule | Effect |
|---|---|---|
| EU | ReFuelEU Aviation: 2% SAF from 2025, 6% from 2030, with an e-SAF sub-mandate; crop-based fuels excluded | guaranteed SAF demand; caps on non-Annex IX wastes |
| EU | RED III transport targets and Annex IX feedstock lists | reward waste-based HVO |
| US | RFS (1.7 RINs per gallon of renewable diesel), California LCFS, 45Z clean fuel credit (imports excluded), half RINs for imports from 2028 | credit stack drives US output |
| Global | ICAO CORSIA: offsetting from 2024 with credit for CORSIA-eligible fuels using default life-cycle values | SAF counts against airline offset obligations |
| UK | SAF mandate from 2025 with e-SAF from 2028 | SAF demand |
India
| Rule | Effect |
|---|---|
| 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.