London: The growth of green jet fuel production may face significant setbacks under President-elect Donald Trump, aviation officials have warned, as fears grow over the possible reversal of tax credits essential to the industry’s development, reports Reuters.
Speaking at an aviation conference in London, representatives from the International Air Transport Association (IATA) and American Airlines highlighted the potential impact of Trump’s policies on clean energy initiatives. The Inflation Reduction Act (IRA), passed in 2022 under outgoing President Joe Biden, provides substantial subsidies for green energy projects and is seen as a cornerstone of efforts to combat climate change.
“There are significant risks about what Trump’s policies might mean and how they could affect the motivation to tackle climate change,” said Marie Owens Thomsen, IATA’s chief economist, in an interview with Reuters.
The European aviation industry has already hailed the IRA as an example of how to induce investment in sustainable aviation fuel, especially as European airlines ready themselves to meet a mandate set for 2026 to use SAF. As a known climate change sceptic, Trump has already vowed to repeal the IRA, but that would also depend on the approval of Congress.
Current operating SAF production facilities are likely to remain operational, though aviation analysts fear that scrapping the IRA tax credits will stall new investment.
Currently, SAF accounts for around 1% of total jet fuel consumed worldwide. Production needs to increase exponentially for the aviation sector to meet its vision of becoming net zero by 2050.
The market needs stability to encourage investment in green fuel infrastructure,” said Ronce Almond, head of intergovernmental affairs for American Airlines, during the conference.
As the Trump administration begins, the aviation sector is watching closely because developments will likely impact policy on the future of green jet fuels and efforts to reduce carbon emissions.
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