Philippines Considers 1% SAF Mandate by 2030, Targets 50% Blend by 2050

Jakarta — The Philippine Department of Energy (DOE) is considering an initial 1% sustainable aviation fuel (SAF) blending mandate by 2030. The proposal, being discussed through the National Biofuels Board, is intended to create early demand, give the industry three to four years to develop domestic supply, and provide a first step towards a long-term target of a 50% SAF blend by 2050.

Energy Undersecretary Sandy Sales said SAF is currently estimated to cost three to four times as much as conventional jet fuel. The government is therefore considering a low initial blend that could provide producers with a clearer market signal without immediately imposing a large mandate on airlines.

A 1% mandate to unlock investment

Power Philippines reported on 9 October 2026 that Sales described the SAF market as a “chicken-and-egg” problem. Investors struggle to justify production facilities while demand remains uncertain, but buyers are reluctant to switch while prices are high and supply is limited. He said some jurisdictions have used initial mandates of about 1% to 2% to establish a market before increasing the blend gradually.

The Philippines has not yet produced a firm estimate of the investment required for domestic SAF production. Costs would depend on plant capacity, feedstock availability, facility location and the logistics needed to transport raw materials. The DOE is also treating energy security as a policy objective alongside emissions reduction because the country remains dependent on imported fuel.

Potential domestic feedstocks include coconut oil, used cooking oil and agricultural residues. Building an industry would also require sustainability certification, storage and blending infrastructure, and technical rules accepted by airlines and international markets.

Roadmap targets a 50% SAF blend by 2050

The Philippine Information Agency reported that the DOE launched two plans at the ASEAN Energy Business Forum in Manila: a Biofuels Roadmap and a Sustainable Aviation Fuel Roadmap. For SAF, the 2026–2028 phase focuses on policy foundations, pilot projects and infrastructure readiness. The 2029–2035 period is intended to scale production and adoption, while 2036–2050 is aimed at full integration with a blend target of up to 50%.

The proposed 1% requirement for 2030 is still a recommendation rather than a final regulation. A decision would need to pass through the National Biofuels Board and subsequent implementing rules. The gap between the initial 1% proposal and the 50% target for 2050 shows that the Philippines is pursuing a phased approach in which higher mandates depend on the development of domestic supply.

The country’s road transport biofuel plan also includes a progressive increase in biodiesel blending towards B20 by 2040. This places SAF within a broader fuel-resilience strategy rather than treating aviation as a stand-alone programme.

Why the plan matters to Indonesia and ASEAN

For Indonesia, the Philippine plan could create another SAF market and sustainable feedstock demand centre in Southeast Asia. Sales specifically pointed to Indonesia and Malaysia as neighbouring countries with established biofuel production. Regional cooperation could cover aligned standards, feedstock certification, trade in intermediate products and cross-border supply chains.

The opportunity also brings competition for investment. If the Philippines develops domestic SAF plants using local raw materials, it could become both a producer and a market. Indonesia will therefore need to advance commercial SAF capacity and sustainability standards alongside rising regional aviation demand.

The Philippine proposal does not yet quantify the cost impact on airlines or passengers. Even so, a 1% mandate would signal that ASEAN countries are beginning to move from demonstration projects towards mandatory market creation, albeit initially at a limited volume.