Airlines, shippers pitch feds on boosting sustainable infrastructure funding

Airlines and marine shippers have asked Ottawa to beef up funding for sustainable transport, money they hope will flow toward green supply chains and upgrades to existing infrastructure. Tax credits, loans and grants are essential to help companies reduce greenhouse-gas emissions and keep pace with other nations' transportation networks, according to a pair of transportation groups ahead of the federal budget set to be tabled April 16. Investors and would-be suppliers need incentives to start churning out sustainable aviation fuel (SAF) — not a drop of which is produced domestically — to match new programs in the United States that aim to cut airplane pollution, the National Airlines Council of Canada says. "Airlines have sent very clear demand signals they will buy every drop of SAF produced, and yet what's missing from the equation is any sort of federal incentive or support, unlike most other western countries, including the US," CEO Jeff Morrison said. Typically derived from used cooking oils, animal fats or organic waste, green jet fuel shaves off about 80% of a plane's emissions. The federal government has set a goal of 10% green jet fuel use by 2030. Last year, it pledged $350m to support decarbonization of the aerospace sector, establishing a national network that backs research and development projects ranging from alternative fuels to aircraft design. But the blueprint offered none of the manufacturing carrots that carriers were demanding, Morrison said. Airlines have two main requests they believe will foster fuel-making factories and long-term output by producers: an investment tax credit at a rate of 50% on manufacturing facilities and a production tax credit with a 10-year horizon — on par with an incentive south of the border.<br/>