As the race for net carbon neutrality inches closer, governments are looking for ways to incentivize airlines into reducing their carbon footprints. Let's be real, who doesn't like a tax cut, but why can't an airline do the right thing for the sake of the people it serves?
The White House on Thursday said it is targeting 20 percent lower aviation emissions by 2030, as airlines facing pressure to lower their carbon footprint promised to use more sustainable aviation fuel.
The push to accelerate carbon cutting is part of President Joe Biden’s target of making the United States net carbon neutral by 2050.
The White House announcement comes as the United States and Europe are trying to boost production of sustainable aviation fuel, which is now made in miniscule quantities from feedstocks such as used cooking oil and animal fat, and can be two to five times more expensive than standard jet fuel.
The announcement confirms a plan by U.S. airlines to back a voluntary industry target of 3 billion gallons of sustainable aviation fuel in 2030, Reuters reported on Wednesday.
Biden said he is seeking a sustainable aviation fuel tax credit as part of the $3.5 trillion reconciliation bill being pushed by congressional Democrats, a move the industry says is necessary to offset the higher costs of production.
The proposed tax credit requires at least a 50 percent reduction in lifecycle greenhouse gas emissions and offers increased incentive for greater reductions.
(Reporting by Allison Lampert in Montreal, David Shepardson and Jarrett Renshaw in Washington; Editing by Mark Porter)
Subscribe to Skift Pro
Subscribe to Skift Pro to get unlimited access to stories like these ($30/month)Subscribe Now
Photo Credit: White House is aiming to lower aviation emissions 20 percent by 2030. Alex Proimos / WikiMedia Commons
A Deaf Traveler Opens Up About Making Travel More Accessible
Accessible travel shouldn't be something to be checked off a list. Instead, Marlene Valle says, it's a human right.
Ruthy Munoz | 22 hours ago
All-Star Investors Katzenberg, Thiel, and Tosi Take Stake in Travel Startup Flyr
The WestCap Group has led a $150 million round in Flyr, a startup that helps travel companies boost their revenue. "Mogul management" appears to be the new "revenue management."
Sean O'Neill | 1 day ago