Last week, the third Conference on Aviation and Alternative Fuels, also known as CAAF/3, hosted by the International Civil Aviation Organization — the United Nations agency charged with international aviation cooperation — committed to a more sustainable future for global aviation by adopting the new ICAO Global Framework for Cleaner Fuels. This development builds on ICAO 2022 General Assembly’s adoption of net-zero carbon emissions by 2050.
One of the Inflation Reduction Act’s key provisions is a powerful tax credit to spark the development and adoption of clean, low-carbon aviation fuels. Climate pollution from aircraft is often overlooked, but if aviation were a country, it would be among the top 10 greenhouse gas emitters.
The Biden administration is about to make a crucial decision on which fuels should be eligible for the tax credits. Getting this right is critical to whether this government subsidy will be money well spent.
