In a recent development, 70 entities including major corporations and biofuel producers have sought clarity regarding carbon tracking in the sustainable aviation fuel (SAF) supply chain under President Biden's climate law. The group, which includes Boeing (NYSE:BA), Archer-Daniels-Midland, Delta Air Lines (NYSE:DAL), Deere (NYSE:DE) & Co., Bunge (NYSE:BG) Ltd., and Poet LLC, has written to Treasury Secretary Janet Yellen advocating for SAF tax rules that employ a pre-existing US Energy Department model.
The signatories warned that introducing a new model could cause significant delays. They also criticized the United Nations' approach to carbon tracking—supported by fuel retailers and environmentalists—as inflexible and outdated. They argue that without their favored model, it would be difficult to reduce aviation emissions or stimulate the development of new technologies and job growth in the green jet fuel industry.
On the other hand, trade groups representing truck stops and fuel retailers endorse the UN's stricter model. They argue this would prevent raw materials such as vegetable oils from being diverted from green diesel production—a sustainable alternative for heavy road vehicles—to SAF production.
In their letter to Secretary Yellen, the group urged her to endorse tax policies under Biden's climate law aimed at promoting the US green jet fuel industry by effectively tracking SAF emissions. This latest move is part of an ongoing lobbying effort to shape the future of sustainable aviation fuel regulations and tax policies in the US.
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