In the latest episode of SAF Talks, we sit down with Ladan Pazhouhandeh, Senior Investment Officer at the International Finance Corporation (IFC), to explore how the World Bank Group’s private sector arm is supporting clients in their vision to drive sustainable aviation fuel (SAF) adoption in emerging markets. IFC is leveraging finance, expertise, and partnerships to help the private sector scale SAF production while addressing poverty reduction and economic growth.
As the private sector financing arm of the World Bank Group, the IFC focuses on development projects that build jobs and livelihoods. Often, these are aligned with the climate goals of their clients. Ladan leads efforts to support manufacturing and energy transition initiatives, including SAF, across Western Europe and emerging markets. The IFC’s toolkit includes equity investments, advisory services, and early-stage project development support. “Our mandate is to use financing as a tool to increase prosperity on a livable planet,” she explains.
Emerging economies can offer unique advantages for SAF production, including abundant renewable energy resources, biomass, and waste feedstocks. High population densities in these regions also create significant demand for energy and opportunities to “leapfrog” traditional infrastructure by building biorefineries directly. However, challenges such as regulatory gaps, political risks, and limited access to finance persist.
For the IFC, bankability hinges on three criteria: Sponsor strength, sustainable feedstock availability, and proven technology. Sponsor expertise in the SAF value chain reduces execution risk, while reliable feedstock streams - particularly for HEFA (Hydroprocessed Esters and Fatty Acids) and alcohol-to-jet pathways - ensure project viability. The IFC also prioritizes mature technologies to mitigate risks in politically volatile markets. Beyond financing, the organization provides advisory services to enhance farming practices, improve waste management, and ensure environmental compliance.
Looking to the next decade the IFC aims to expand its SAF portfolio in emerging markets, focusing on circular business models that formalize informal sectors like waste collection and agri-processing. By supporting demonstration projects and mobilizing partnerships, the organization seeks to catalyze broader investment in SAF technologies.