Skift Take
As the race for net carbon neutrality inches better, federal governments are looking for ways to incentivize airline companies into minimizing their carbon footprints. Let’s be real, who doesn’t like a tax cut, but why can’t an airline do the best thing for the sake of individuals it serves?
Ruthy Muñoz
The White House on Thursday stated it is targeting 20 percent lower aviation emissions by 2030, as airline companies facing pressure to decrease their carbon footprint guaranteed to use more sustainable aviation fuel.
The push to accelerate carbon cutting belongs to President Joe Biden’s target of making the United States net carbon neutral by 2050.
The White Home statement comes as the United States and Europe are attempting to boost production of sustainable air travel fuel, which is now made in little amounts from feedstocks such as used cooking oil and animal fat, and can be two to 5 times more pricey than standard jet fuel.
The announcement validates a plan by U.S. airlines to back a voluntary industry target of 3 billion gallons of sustainable air travel fuel in 2030, Reuters reported on Wednesday.
Biden stated he is seeking a sustainable aviation fuel tax credit as part of the $3.5 trillion reconciliation costs being pressed by congressional Democrats, a move the industry states is essential to balance out the greater costs of production.
The proposed tax credit requires a minimum of a 50 percent reduction in lifecycle greenhouse gas emissions and offers increased incentive for higher decreases.
(Reporting by Allison Lampert in Montreal, David Shepardson and Jarrett Renshaw in Washington; Modifying by Mark Porter)
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