UNITED Airlines CEO Scott Kirby said he expects federal subsidies for sustainable aviation fuel under the Inflation Reduction Act, former President Joe Biden's landmark climate change law, to remain in place.
'This is one area that has support on both sides of the aisle to be protected,' he said at the S&P Global's CERAWeek conference in Houston.
'You know, it's possible that everything in the IRA just get thrown out, but I think SAF is likely to get protected,' said Mr Kirby
Mr Biden's Inflation Reduction Act's (IRA) impact on Sustainable Aviation Fuel (SAF), the act introduced significant incentives to boost SAF production and adoption.
It established a SAF tax credit that rewards producers for reducing greenhouse gas emissions. SAF that achieves at least a 50 per cent reduction in emissions compared to conventional jet fuel qualifies for a US$1.25-per-gallon tax credit, with additional credits for greater reductions, up to a maximum of $1.75 per gallon.
This initiative aims to help the US aviation sector transition from fossil fuels, say proponents.
SeaNews Turkey
'This is one area that has support on both sides of the aisle to be protected,' he said at the S&P Global's CERAWeek conference in Houston.
'You know, it's possible that everything in the IRA just get thrown out, but I think SAF is likely to get protected,' said Mr Kirby
Mr Biden's Inflation Reduction Act's (IRA) impact on Sustainable Aviation Fuel (SAF), the act introduced significant incentives to boost SAF production and adoption.
It established a SAF tax credit that rewards producers for reducing greenhouse gas emissions. SAF that achieves at least a 50 per cent reduction in emissions compared to conventional jet fuel qualifies for a US$1.25-per-gallon tax credit, with additional credits for greater reductions, up to a maximum of $1.75 per gallon.
This initiative aims to help the US aviation sector transition from fossil fuels, say proponents.
SeaNews Turkey
