Flawed SAF tax credits?
Some lawmakers in Washington DC, have touted sustainable aviation fuel (SAF) as the solution to curbing airline sector carbon emissions and reducing the industry’s carbon footprint.
This goal is laudable, but transparently flawed - a higher tax credit for SAF than other biofuels will in practice increase emissions from the on-road transportation sector. The amount that on-road emissions will increase will exceed the amount that aviation emissions would decrease.
Congressional Democrats are seeking a $1.25 - $1.75 (€1.1-€1.13) special tax credit for SAF, up to $0.75 (€0.66) more per gallon than the $1 (€0.88) per gallon biodiesel and renewable diesel blenders’ tax credit.
The proposed SAF tax credit will in practice limit the amount of renewable diesel and biodiesel that will be available to the trucking industry.
Biofuels boost
For more than a decade biofuels have been an essential tool to reduce on-road emissions. Without major policy changes, those benefits would increase rapidly in the coming decade. An SAF tax credit without parity for other transportation fuels, however,...
This goal is laudable, but transparently flawed - a higher tax credit for SAF than other biofuels will in practice increase emissions from the on-road transportation sector. The amount that on-road emissions will increase will exceed the amount that aviation emissions would decrease.
Congressional Democrats are seeking a $1.25 - $1.75 (€1.1-€1.13) special tax credit for SAF, up to $0.75 (€0.66) more per gallon than the $1 (€0.88) per gallon biodiesel and renewable diesel blenders’ tax credit.
The proposed SAF tax credit will in practice limit the amount of renewable diesel and biodiesel that will be available to the trucking industry.
Biofuels boost
For more than a decade biofuels have been an essential tool to reduce on-road emissions. Without major policy changes, those benefits would increase rapidly in the coming decade. An SAF tax credit without parity for other transportation fuels, however,...
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