Abstract
<jats:p>Sustainable Aviation Fuel (SAF) is widely viewed as a near- to mid-term pillar of aviation decarbonization because it can function as a drop-in fuel within existing aircraft and fueling infrastructure, while enabling substantial life-cycle greenhouse gas (GHG) reductions when produced from low-carbon feedstocks and robustly accounted for. Under ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), life-cycle accounting, including default and actual life-cycle emissions values, has become central to how airlines can claim emissions reductions from eligible fuels. Recent policy-relevant developments highlight Palm Oil Mill Effluent (POME)—a residue stream from crude palm oil (CPO) processing—as a potentially important SAF feedstock, particularly when POME oil is recovered and converted via hydroprocessed esters and fatty acids (HEFA). Drawing on a qualitative literature review (QLR) and policy-document triangulation, this paper synthesizes the opportunity and challenge landscape for POME-based SAF in supporting global aviation decarbonization. The thematic findings emphasize (i) carbon-accounting advantages linked to residue classification and low default life-cycle emissions factors, (ii) Indonesia’s strategic potential as a large-scale residue-based SAF supplier, and (iii) governance requirements for credibility, including traceability, sustainability certification, and fuel accounting systems. Key challenges include supply-chain variability, measurement–reporting–verification (MRV) integrity risks, infrastructure and conversion constraints, and policy coordination across domestic allocation and trade. The paper concludes with policy recommendations focused on building trustworthy traceability and accounting architecture and aligning incentives to scale residue-based SAF without undermining broader sustainability expectations.</jats:p>