US: tax credits to encourage SAF production
The Biden administration has introduced tax credits to encourage the production of sustainable aviation fuels (SAF), marking a significant step towards decarbonizing the U.S. airline industry.
The Washington Post reports that the incentives aim to reduce greenhouse gas emissions by supporting the production of jet fuel from agricultural crops, aligning with climate-smart agricultural practices. This initiative is part of the broader Inflation Reduction Act, seeking to meet environmental goals while also enhancing the role of farmers in the eco-friendly transformation.
$1.25 credit per gallon
The tax credits will benefit producers of SAF, that can cut greenhouse gas emissions by at least 50% compared to traditional jet fuels. Eligible fuels will receive a $1.25 credit per gallon, with additional incentives for exceeding the 50% reduction mark. This strategic move is seen as essential in tackling the aviation sector's notable environmental impact, which includes consuming about 10% of all U.S. transportation energy and contributing 2% to national carbon emissions.
Effects on food production
Critics, however, express concerns over potential negative effects on food production, fearing that increased crop use for fuel could lead to deforestation and food scarcity globally. Despite these challenges, the administration remains optimistic, viewing this as a crucial step towards achieving net-zero emissions in aviation and supporting sustainable agricultural practices, the Washington Post reports.
