Philippines backs sustainable aviation fuel hub using agricultural waste
The Philippines backed a SAF hub around agricultural waste after BOI and Island Skies Alliance signed a June 16 pact to build the supply chain.
The Board of Investments on June 19 backed a sustainable aviation fuel hub built on agricultural waste, after signing a memorandum with Island Skies Alliance Inc. on June 16. The deal is meant to attract green investments, encourage innovation and strengthen the Philippines’ SAF ecosystem as airlines face tighter decarbonization targets. Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo and ISA chief executive Junard J. Cruz signed the pact.
The timing fits a market that still has far more demand than supply. IATA says SAF could deliver up to 65% of the reductions aviation needs to reach net-zero carbon emissions by 2050, and its 2025 assessment puts required supply at about 500 million tonnes in 2050, versus roughly 2 million tonnes of global production in 2025. IATA said 2024 SAF output reached about 1 million tonnes, or 1.25 billion liters, equal to 0.3% of global jet fuel use. ICAO’s CORSIA scheme already allows aircraft operators to reduce offsetting requirements by using eligible SAF, giving certified fuel a formal compliance route.
BOI and ISA are pitching the Philippines as more than a buyer of imported low-carbon fuel. ISA describes itself as a collaborative platform focused on SAF adoption and CORSIA-compliant carbon credit programs, bringing together government agencies, airlines, technology providers, investors and sustainability experts. BOI said the country has the ingredients to become a global SAF leader, citing an expanding aviation market, abundant feedstock resources and supportive policies.
The policy work did not start with the June memorandum. BOI and the Global Green Growth Institute convened the first Philippine Sustainable Aviation Fuel Investment Forum in October 2025, drawing 170 prospective investors and representatives from government, local government units, investment promotion agencies and NGOs. Participants included the Civil Aviation Authority of the Philippines, the Asian Development Bank, Central Luzon State University, BOI and Island Skies Alliance. CAAP said in April 2026 that it was adopting the SAF concept to align with international decarbonization goals and local agricultural resources.
BOI also highlighted SAF at the Singapore Airshow in March 2026, and its industry profile pointed to Cebu Pacific’s long-term strategic partnership with Shell Eastern Petroleum in 2022 to improve SAF availability. For the Philippines, the real test now is whether farm residues can be turned into dependable feedstock, whether refining capacity follows, and whether airlines commit to offtake that can support a domestic SAF market.
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