As the global aviation sector seeks to decarbonise, sustainable aviation fuel (SAF) has emerged as a central lever for achieving net-zero emissions targets. Yet, in the Asia-Pacific (APAC) region—home to some of the fastest-growing aviation markets in the world—SAF deployment remains constrained by fragmented policy frameworks, insufficient production capacity, and limited access to feedstocks and/or refining infrastructure in smaller or geographically isolated markets.

A new model of regional cooperation can help address these challenges—one that aligns policy, trade, and emissions accounting to create “green lanes” for SAF across APAC. Green lanes would serve as structured channels for SAF deployment, enabling cross-border access to low-emission fuels and incentivising investment in production capacity where it is most viable by strategically linking supply and demand at a regional level.

This article explores the rationale for this approach, outlines key enablers, and proposes concrete steps for turning green lanes from theory into reality.

The case for green lanes in APAC

SAF production is heavily dependent on feedstock availability, refining infrastructure, and favourable policy environments—factors that are unevenly distributed across APAC. Countries like Australia, Indonesia, and Malaysia have abundant feedstocks (e.g. agricultural residues, waste oils, forestry by-products), while others such as Singapore, Japan, South Korea, and New Zealand have robust airline sectors but limited domestic production capacity.

This creates a structural mismatch: countries with strong demand may struggle to procure SAF, while those with production potential may lack clear offtake pathways or face challenges in meeting international sustainability criteria.

Green lanes would enable targeted SAF flows from production centres to consumption hubs, while ensuring that environmental benefits are verifiably accounted for under credible emissions accounting frameworks.

A foundational feature of green lanes is the use of book-and-claim systems to decouple the physical flow of SAF from its environmental attributes. This allows airlines in demand-heavy but supply-poor markets—such as Hong Kong or Tokyo—to claim the carbon benefits of SAF produced and consumed elsewhere in the region.

This mechanism is particularly important for “hard-to-serve” airports that lack blending infrastructure or regular long-haul flights capable of absorbing SAF physically. With a robust book-and-claim system, the emissions reduction is real—verified, reported, and attributed correctly—even if the fuel never touches the tarmac of the claiming airline’s location.

Enabling green lanes through bilateral framework agreements

A key enabler of green lanes is policy interoperability across participating jurisdictions. To facilitate this, governments in the region could explore the establishment of Green Lane Framework Agreements (GLFAs). These agreements would address key policy and trade issues relating to SAF deployment and use across the participating jurisdictions, including for example:

• Designation of green lane boundaries: Governments would define the eligible SAF production and consumption corridor/s that are subject to the provisions of the agreement. While this article is primarily focused on bilateral engagement at the national level, in theory state governments would not be precluded from seeking to establish green lanes with overseas counterparts (e.g. Queensland establishing a GLFA with Japan or New Zealand).
• SAF certification and emissions accounting: GLFAs could establish mutual recognition of accepted SAF sustainability standards, such as CORSIA, EU RED II/III, or other national equivalents. The Australian government’s Guarantee of Origin (GO) Scheme, which is currently under development for low carbon liquid fuels, could provide a useful basis on which to build a broader regional scheme that takes into account widely adopted international principles and standards. Alignment on lifecycle emissions accounting methodologies (e.g. LCA models, default values) and how SAF claims are treated in national emissions reporting frameworks (including implications of a book and claim system for domestic emissions inventories) would also be critical elements of an effective GLFA.
• Trade facilitation: Governments could also use GLFAs to coordinate on customs and trade facilitation measures for SAF and SAF certificates. This could include mechanisms like mutual documentation recognition, shared SAF registries and reduced import duties.
• Incentive portability and co-funding: Provision could be made for shared financing or co-investment tools. This could take the form of a bilateral or regional investment fund, through which multiple countries contribute funding to subsidise SAF infrastructure or production in strategic locations, with beneficiaries selected via open tenders. Governments could support collaboration on SAF technology innovation through models similar to the Canada–France Clean Tech Partnership or Horizon Europe. A more innovative lever could involve cross-border Contracts-for-Difference (CfDs), through which SAF producers in one country could access top-up pricing from the destination country, funded by that country’s public or private buyers, with oversight from a shared governance board.
• Demand aggregation: GLFAs could also provide an additional forum through which airlines in the relevant jurisdictions could partner to aggregate demand for SAF, enabling access to better commercial terms for SAF offtake agreements with producers in feedstock-rich countries (potentially facilitated by government intermediaries).

Through these measures, GLFAs could establish clear frameworks and incentives to support collaboration on development of the SAF market in partner countries and enable realisation of mutual benefits for industry and governments.

Benefits of green lanes for participating countries

The development of green lanes for SAF can offer a host of economic, environmental and social benefits to countries in APAC. Examples include:

• Unlocking demand and investment flows for producer countries: Green lanes provide clear access to international buyers and support long-term demand visibility, helping to unlock private and public investment in feedstock supply chains and SAF refining infrastructure. Countries like Indonesia, Thailand, and Australia could become significant SAF exporters underpinned by robust emissions crediting frameworks.
• Access to SAF to meet compliance demand: Countries with limited domestic feedstocks or refining capacity can still meet regulated aviation decarbonisation targets through accelerated access to internationally sourced SAF that meets the relevant sustainability and certification requirements, supporting domestic airlines without requiring domestic production in the near term.
• Climate leadership and energy resilience for APAC: A coordinated strategy between key actors in APAC to support SAF market development would help to strengthen regional energy security by reducing dependency on fossil jet fuel imports from other regions and providing for more predictable SAF supply arrangements between partner countries. It can also position APAC as a leader in sustainable aviation innovation, in line with ICAO’s LTAG (Long-Term Aspirational Goal) and global climate commitments.
• Inclusion in global aviation decarbonisation for smaller/island nations: Green lanes can help ensure that smaller markets, such as Pacific Island nations, are not left behind. By leveraging regional partnerships and book-and-claim accounting models, these states can access SAF benefits without needing costly local infrastructure which is unlikely to be feasible in the near term.

A path forward

Regional dialogue and coalition-building, as well as further exploration of how specific green lanes in APAC could be implemented, are important next steps towards realising this vision. This should include development of a roadmap for pilot projects, policy alignment, and infrastructure planning in relevant markets. Initial green lanes could be piloted between locations such as Australia and New Zealand, Indonesia and Japan or Malaysia and South Korea.

Private sector involvement will be critical—from airlines and airports to logistics providers and feedstock and fuel producers. Governments must create the market architecture, but industry will play a key role in driving scale and execution. There may be opportunities for GLFAs to be developed through existing regional platforms like ASEAN or APEC, or through bilateral climate and energy partnerships like the Australia–Singapore Green Economy Agreement.

Green lanes represent a pragmatic and forward-thinking model for SAF deployment in the APAC region. By aligning policy, emissions accounting, SAF certification, traceability and trade measures, countries can unlock shared benefits while supporting regional development and accelerating the decarbonisation of the aviation sector.

In a region as diverse and dynamic as APAC, the green lane model is not only feasible—it’s essential.