Jurgen Westermeier, the President and Managing Director for India and South Asia at Airbus, has suggested that contributions from corporations toward airlines' voluntary Sustainable Aviation Fuel (SAF) programs should be acknowledged as part of the government's Corporate Social Responsibility (CSR) framework.
Westermeier stressed that the action would not only address climate change but also access substantial funding for the development of SAF, which could be vital for India's energy future.
Under the companies law, specific profitable organizations must dedicate a minimum of two percent of their yearly profit to CSR initiatives.
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Westermeier urged the government to recognize the funds spent by corporates on voluntary SAF contributions as a legitimate CSR expense. “This inclusion would immediately unlock a substantial new pool of capital to support SAF demand, transforming a compliance requirement into a powerful engine for a greener, more sustainable energy future,” he said.
“We need unprecedented collaboration across all stakeholders—government, industry, and academia—to develop this industry,” Westermeier said, adding that the SAF sector would require significant investment.
He also pointed out that the SAF value chain has the potential to create 1.1 to 1.4 million jobs and effectively use around 230 million tons of excess agricultural residue, thus serving as an economically advantageous project.
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India is considered as one of the rapidly expanding aviation markets globally, with significant opportunities for the production of Sustainable Aviation Fuel (SAF). According to Westermeier, SAF could play a crucial role as an economic driver in India. He emphasized that establishing a local SAF industry would enhance the country's energy security and allow for better management of the fuel supply chain.
Westermeier made these remarks when the worldwide aviation sector is seeking sustainable methods to lower its carbon emissions, with SAF being viewed as a top choice to decrease greenhouse gas emissions.
Air India is said to be in talks with Airbus and Boeing to buy more wide-body jets, with plans to potentially purchase up to 300 aircraft. The addition of these jets would strengthen Air India's global routes and replace older planes in its fleet.
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Air India is in the process of rebranding itself as a modern, global carrier and is considering adding up to 300 more planes to its fleet as part of its fleet renewal and expansion program post privatization in January 2022. Standard Chartered took on a primary role as the structuring bank. It was also mentioned in the statement that Bank of India and Standard Chartered worked together to underwrite the transaction as the mandated lead arranger and bookrunner.