This study examines the development of sustainable aviation fuels (SAFs) in Brazil within the broader context of global decarbonization and energy transition objectives. Despite Brazil’s established leadership in biofuels, the adoption of SAF remains incipient, hindered by technological, economic, and regulatory barriers. Through a comprehensive review of national initiatives from 2000 to 2024, this research quantifies Brazil’s significant potential, estimating that sugarcane residues alone could produce 6.48 billion liters of SAF annually via the Alcohol-to-Jet (ATJ) pathway, meeting up to 90% of the country’s fossil jet fuel demand. The analysis highlights that global SAF production surpassed 600 million liters in 2023, yet this represents only 0.53% of total aviation fuel consumption. In Brazil, key challenges include production costs, which remain 20% higher than conventional jet fuel, and a regulatory environment requiring alignment with international standards such as ASTM D7566, which currently permits only a 50% blend limit for most SAF pathways. The study evaluates the role of pivotal policies like the Programa Combustível do Futuro and the RenovaBio program, which generate decarbonization credits (CBIOs), in fostering a supportive governance ecosystem. It further identifies critical bottlenecks in environmental licensing and the need for enhanced public–private collaboration to de-risk investments. Recommendations are provided to streamline multi-stakeholder engagement, implement targeted fiscal incentives, and consolidate regulatory frameworks to accelerate SAF integration. These efforts are essential for Brazil to meet its ambitious Nationally Determined Contribution commitments to reduce greenhouse gas emissions by 48.4% by 2025 and 53.1% by 2030, positioning its aviation sector as having a sustainable, low-carbon future.