IATA: Central Asia Lags in Sustainable Aviation Fuel Development Despite Global Shift to SAF

Tashkent, Uzbekistan (UzDaily.com) — The development of sustainable aviation fuel (SAF) in Central Asia is falling behind global trends and requires urgent action from the region’s governments.

This was stated by Rizwan Siddiqui, IATA Country Manager for Central Asia, during a discussion at the Central Asia Aviation Summit in Tashkent. He emphasized that without government incentives and a regulatory framework, the region risks missing a crucial stage in the global transformation of the aviation industry.

According to Siddiqui, SAF currently accounts for about 0.7 percent of global aviation fuel — a figure that must rise to 65 percent by 2050 under the industry’s commitments to achieve net-zero emissions. Achieving this will require US$1.5 trillion in investments and the large-scale construction of production facilities.

However, as the IATA representative noted, investors expect transparent rules, incentive mechanisms, and long-term political guarantees from governments.

Siddiqui highlighted the experience of the United States and the European Union, where governments have already implemented support measures for SAF producers. In the U.S., the creation of production capacity was made possible through tax benefits and direct incentives. In the EU, mandatory SAF usage requirements have been introduced: by 2025, European airports must ensure at least 2 percent of fuel is sustainable. A similar approach is emerging in Asia: Singapore is introducing a flight-distance–based tax, and Malaysia requires airlines to supply a minimum of 1 percent SAF in refueling operations.

In Central Asia, Siddiqui emphasized, such mechanisms do not yet exist. Kazakhstan is the only country in the region to have joined the global ICAO initiative, CORSIA, which imposes obligations for carbon offsetting. Uzbekistan, he said, continues to study the possibilities of joining, but its regulatory framework is not yet in place. Nonetheless, initial industry initiatives are appearing in Kazakhstan: companies LanzaJet and KazMunayGas are considering building an SAF production facility in Kostanay Region.

The absence of subsidies, investment incentives, and a clear governmental position continues to hinder the development of sustainable fuels in the region. “So far, no Central Asian country has announced either mandates or financial support measures,” Siddiqui noted.

He stressed that the cost of SAF remains a key barrier: one ton of sustainable fuel currently costs US$2,000–2,500, whereas conventional aviation fuel costs about US$750 per ton. Prices can only decrease with large-scale construction of production facilities, which is impossible without government intervention.

Siddiqui also urged countries in the region to more actively study and implement international emissions regulatory tools, noting that many aviation regulators in Central Asia still do not fully understand the scale and importance of transitioning to green technologies. “CORSIA is not a declaration but a tool for implementation. And it is the implementation, not the signing, that is the most challenging part,” he said.

Meanwhile, Uzbekistan has taken a significant step toward sustainable aviation fuel production. Allied Biofuels FE LLC Uzbekistan signed an agreement with the Khorezm regional government regarding land and water resources for the implementation of a biorefinery complex in Tuproqqalin District. The investment is estimated at US$5.9 billion.

The project envisages the construction of the first fully integrated zero-emission aviation fuel plant in Central Asia. The facility will be capable of producing 382,000 tons of SAF annually, 152,000 tons of e-SAF (electro-synthetic fuel), and 11,000 tons of “green” diesel powered by 2 GW PEM electrolyzers.

The initiative aims to establish a climate-oriented aviation fuel supply chain in Uzbekistan and strengthen Khorezm Region’s role as a hub for sustainable energy and industrial innovation.