Temasek-owned decarbonisation platform GenZero, in partnership with the World Economic Forum (WEF), has launched a new regional coalition aimed at addressing the sluggish demand for sustainable aviation fuel (SAF) and accelerating the decarbonisation of Asia’s fast-growing aviation sector.
Unveiled on Monday at the GenZero Climate Summit 2025 in Singapore, the initiative—dubbed Green Fuel Forward—brings together airlines, logistics firms, and corporate entities to support the uptake of green jet fuel through the purchase of SAF credits. Each credit represents one metric tonne of SAF and can be bought by companies outside the aviation industry to offset their Scope 3 emissions. These emissions arise from indirect value chain activities such as business travel and air freight.
By using a “book and claim” system, which allows for the trading and tracking of these credits without the buyer needing to physically procure the fuel, the initiative aims to create a new revenue stream that can lower SAF production costs and scale up its availability.
“If we make it cheaper, there will be more demand… With that kind of expanded demand, you give a signal to producers to invest in supply because they know there will be that kind of demand. That is the theory of change,” said Frederick Teo, Chief Executive of GenZero, in an interview with Eco-Business.
Teo added, “If corporates are prepared to offset some of their air travel emissions by buying and using SAF credits instead of just purchasing other kinds of credits, then the money we’re using to offset our Scope 3 is directly going into subsidising airlines and airports in purchasing SAF.”
Aviation itself accounted for 2.5 percent of energy-related carbon emissions in 2023. Although SAF has been deemed the key to de-carbonizing the industry-short of reducing flying-its roll-out has so far been forestalled by exorbitant price tags. By IATA estimates, SAF currently costs approximately US$2,500 per tonne in 2025, almost 3.8 times the cost of conventional jet fuel. SAF production currently represents merely 0.3 percent of global production of jet fuel.
Teo also highlighted Singapore’s approach to SAF mandates as a forward-thinking model. Instead of requiring a set percentage of SAF in fuel blends, the country plans to introduce a levy on air tickets, using the proceeds to fund SAF adoption.
He said, “It’s an innovative way of boosting demand for green jet fuel while shielding airlines and passengers from the price volatility associated with it.”