Cathay Welcomes Peking University Study on Accelerating China’s SAF Development

Cathay has welcomed the release of Igniting the SAF Market: Policy Pathways for Scaling Sustainable Aviation Fuel in China, a research study published by Peking University’s National School of Development in late 2025. The study provides analysis and recommendations aimed at scaling sustainable aviation fuel (SAF) adoption in the Chinese Mainland through coordinated supply- and demand-side market measures.

The study examines current challenges and untapped potential in China’s SAF market, benchmarking global best practices while drawing comparisons with the country’s solar photovoltaic sector. It highlights China’s feedstock and manufacturing advantages and assesses long-term cost trajectories across different SAF production pathways. According to the report, the Power-to-Liquid pathway, commonly associated with electro-sustainable aviation fuel (eSAF), offers the strongest potential for long-term cost reduction. With appropriate policy support, locally produced SAF via this pathway could achieve price parity with conventional jet fuel, including China’s projected 2030 carbon price, once cumulative eSAF output reaches 1.6 million tonnes.

The study recommends a multi-pronged approach to developing China’s SAF industry, including policy alignment, measures to stimulate market demand, expanded international market access, and procurement mechanisms designed to support stable long-term supply and demand.

Cathay General Manager Sustainability Grace Cheung said the development of a domestic SAF industry in the Chinese Mainland would have implications well beyond the local market.

“As a vital player in global aviation and the SAF ecosystem, the Chinese Mainland’s development of its domestic SAF industry not only supports national carbon targets, but also helps promote the availability and affordability of SAF needed by the global aviation industry,” Cheung said.

She added that the study’s findings underscore the importance of policy and technology support in making SAF commercially viable. “The long-term potential for cost parity between SAF and conventional jet fuel will be essential for airlines worldwide to scale SAF usage in a sustainable and economically viable way.”

Cathay has been an early supporter of SAF development in the Chinese Mainland and was among the first airlines to uplift Chinese-produced SAF at Hong Kong International Airport, Amsterdam Schiphol Airport, and London Heathrow Airport.

SAF continues to play a central role in aviation’s decarbonization efforts. Based on the SAF procured by the Cathay Group in 2024, the fuel can deliver lifecycle carbon emissions reductions of up to around 80 percent compared with conventional jet fuel.