Asian economies re shaping low carbon fuel landscape

Asia’s biofuel sector is undergoing a period of rapid change, driven by decarbonisation commitments, energy security concerns and the desire to build new industrial capabilities. While Asia is often discussed as a single market, the reality is far more nuanced. Indonesia and Malaysia continue to anchor their strategies in palm oil; Singapore has become the region’s renewable diesel and SAF powerhouse; Korea is building a policy framework from the ground up; and Japan is pushing technological innovation and ambitious aviation targets. Together, these countries are creating a complex, but increasingly interconnected biofuel ecosystem. Indonesian drive Indonesia stands out as the most assertive adopter of biodiesel in Asia. Its B35 mandate, introduced in 2023, is one of the highest blending requirements in the world and reflects the government’s determination to reduce fossil fuel imports while supporting domestic palm oil producers. Trials for a B40 blend are already underway, signalling further tightening ahead. The country’s biodiesel programme is underpinned by export levies on palm oil, which subsidise domestic production and ensure stable supply. This model...