In South Korea, a new report by the Institute for Energy Economics and Financial Analysis highlights the importance of developing a domestic sustainable aviation fuel supply chain and addressing associated challenges and risks for South Korea to capitalize on market opportunities.
South Korea, the world’s largest exporter of jet fuel, has implemented an SAF mandate, effective from August 2024, requiring a blend of at least 1% SAF for international flights by 2027.
According to Michelle (Chaewon) Kim, report author and IEEFA’s Energy Finance Specialist in South Korea, the mandate is a significant step towards reducing the aviation sector’s contribution to global greenhouse gas (GHG) emissions, which accounts for 2-3% of total emissions.
However, delayed domestic supply uptake and unsustainable feedstock usage and production pathways could pose challenges that hinder the country’s SAF market leadership and decarbonization potential.
Leveraging South Korea’s advanced recycling system
South Korea has one of the world’s best waste recycling systems (86% recycled waste) and is ranked second in the Organization for Economic Cooperation and Development (OECD) for municipal waste recycling (56.5%).
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