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The U.S. and Europe struggle to define the term sustainable aviation fuel, investors in a Bind

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on the Wall Street Journal or enjoy below:

🗞️ Driving the news: Airlines and fuel producers are facing confusion and investment challenges due to differing definitions of sustainable aviation fuel (SAF) between the U.S. and Europe

🔭 The context: The EU excludes crop-based feedstocks from its SAF mandate, focusing on synthetic fuels, while the U.S. allows crop-based fuels like corn and soy for tax credits
• This disparity causes uncertainty in the industry about what qualifies as SAF

🌍 Why it matters for the planet: Sustainable aviation fuel is crucial for the airline industry's decarbonization efforts, but conflicting regulations may hinder progress and investment in environmentally friendly fuels

⏭️ What's next: The EU's ReFuelEU mandate will require 2% SAF by 2025, increasing to 20% by 2035, while the U.S. offers tax credits for SAF with over 50% lifecycle emissions reductions
• Industry stakeholders need to navigate these regulatory landscapes to align investments

💬 One quote: “They don’t know how their purchase of SAF is going to be treated, whether it will qualify under a regulation or whether it’ll be admissible under a voluntary standard,” said John Dees, senior decarbonization scientist for Carbon Direct

📈 One stat: Prices for SAF in California were about $5.34 a gallon in June, compared to just over $3 a gallon for conventional jet fuel

Click for more news covering the latest on sustainable mobility and oil & gas 

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