Environmental groups fear US poised to promote SAF that is not sustainable

Environmental groups fear new US guidelines for sustainable aviation fuel (SAF) could promote widespread production of biofuels that may not actually be sustainable. At issue are guidelines released on 15 December defining how fuel producers can determine which alternative fuels qualify for a new SAF tax credit. Environmental groups have been urging the government not to allow a method known as “GREET”, which they say fails to fully account for a biofuel’s lifecycle emissions. But they face a tough fight against powerful US industries, including airlines, which say the GREET method is credible and critical to helping them meet carbon-reduction goals. Lobby groups with ties to biofuel – like the National Corn Growers Association and Clean Fuels Alliance America – are aligned behind airlines. “Our initial assessment is that this would be a blank check for fuels made from sugar cane, soybean and rapeseed – none of which are sustainable or consistent with Congress’ intent,” Environmental Defense Fund senior vice-president Mark Brownstein said on 15 December of the USA’s new tax guidance. A 2022 US law grants fuel producers a $1.25-$1.75 tax credit per gallon for SAF deemed to have 50% less life-cycle carbon emissions than fossil-based jet fuel. The law defines qualifying fuels as those meeting definitions within ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation. But the law also allows fuels meeting other “similar” methods as qualifying. The 15 December guidance, issued by the Internal Revenue Service and US Department the Treasury, starts to define those other methods. Specifically, the government says current GREET models to not satisfy SAF requirements. But it is developing a “modified GREET” model for SAF, to be completed in early 2024.<br/>