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Nazrin Abdul

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Azerbaijan has made sustainability and the transition to a green economy central to its long-term national development strategy. From hosting global climate forums to investing in renewable energy and decarbonization technologies, the country is actively working to align its economic growth with environmental responsibility. In this context, Azerbaijan Airlines (AZAL) has announced a major initiative to explore the use of Sustainable Aviation Fuel (SAF) as part of its commitment to reducing carbon emissions and advancing environmental, social, and governance (ESG) standards.

Speaking at the IATA Aviation Energy Forum held in Baku, AZAL President Samir Rzayev stated that the airline is conducting feasibility studies on SAF production and supply in the region. These efforts are aligned with the European Union’s “RefuelEU” initiative, aimed at increasing the use of renewable fuels in aviation.

“We are exploring the potential for producing and supplying SAF, and preparing the infrastructure and regulatory environment needed for its safe and scalable integration,” said Rzayev.

He added that AZAL is actively engaging with financial institutions to attract green investment and is working on a comprehensive ESG strategy that includes clean energy, digital energy management systems, and electrification of airport ground operations.

AZAL joins IATA’s CO₂ Connect Program

In a parallel move reinforcing its environmental leadership, AZAL also signed an agreement with the International Air Transport Association (IATA) to join the CO₂ Connect program. The agreement was formalized during the same forum and represents another strategic effort to implement data-driven climate action.

The document was signed by Jamil Manizade, Chief Commercial Officer at AZAL, and Funda Calisir, IATA’s Area Manager for Türkiye, Central Asia, and Azerbaijan.

“By signing the CO₂ Connect agreement with IATA, AZAL strengthens its commitment to transparent, data-driven climate action,” said Manizade. “This collaboration enables us to share accurate CO₂ emissions data and support more informed, sustainable travel choices in line with our decarbonization goals.”

What Is SAF? - Sustainable Aviation Fuel is a renewable alternative to traditional jet fuel, produced from sources such as used cooking oil, agricultural residues, and other non-food biomass. SAF can reduce lifecycle greenhouse gas emissions by up to 80 percent compared to fossil-based aviation fuel, making it a key tool in global decarbonization efforts.

Unlike many experimental energy solutions, SAF is compatible with existing aircraft and fueling infrastructure, requiring no major modifications for use - a feature that makes it particularly attractive to airlines aiming for short- to medium-term emission reductions.

Can Azerbaijan produce and export SAF? - Azerbaijan’s extensive experience in oil refining and its access to agricultural waste and biomass feedstocks suggest that local SAF production is feasible. The country’s strategic location and transport links also make it a potential export hub for SAF, especially to neighboring regions and the European Union.

However, realizing this potential will require:

- Legislative frameworks for SAF certification and blending mandates;
- Investment in advanced biofuel refining technologies;
- International partnerships with technology providers and buyers.

With demand for SAF expected to surge globally, especially in Europe, Azerbaijan has a timely opportunity to position itself as a key regional supplier.

AZAL’s SAF initiative could offer Azerbaijan several long-term benefits: Economic diversification through new green industries; job creation in sustainable energy and aviation; environmental protection through reduced emissions; improved international reputation as a forward-looking, climate-responsible nation.

Moreover, SAF adoption supports Azerbaijan’s broader sustainability goals and its alignment with international climate commitments, including those outlined in the Paris Agreement.

While promising, SAF adoption is not without obstacles. The current cost of SAF remains high - two to five times that of conventional jet fuel - due to limited supply and complex production processes. Feedstock availability and competition from other renewable energy sectors also present challenges.

Globally, countries like the United States, Netherlands, and Singapore are leading in SAF deployment, supported by government incentives and public-private cooperation. Airports such as Los Angeles (LAX), Amsterdam Schiphol, and Singapore Changi have already begun integrating SAF into their fuel supply chains. These examples provide important models for Azerbaijan as it seeks to scale its SAF ambitions.

The SAF initiative is part of a broader transformation underway at AZAL. According to Rzayev, the airline is developing an expansive ESG strategy that includes: Development of “smart” airport infrastructure; use of renewable energy at terminals; introduction of zero-waste policies; publication of regular sustainability reports AZAL’s upcoming 2024 sustainability report will include a detailed assessment of carbon emissions and outline new climate action measures.

AZAL’s commitment to Sustainable Aviation Fuel represents more than just a corporate initiative - it is a strategic contribution to Azerbaijan’s national green agenda and a bold step toward decarbonizing one of the most challenging sectors of the economy. By proactively investing in clean energy solutions, building international partnerships, and embracing transparent carbon reporting, AZAL is positioning itself at the forefront of aviation sustainability in the region.

As the global aviation industry accelerates its transition to low-carbon operations, Azerbaijan - through AZAL- demonstrates that it not only has the resources and infrastructure, but also the vision and leadership to shape the future of climate-conscious air transport across Eurasia and beyond.