Click here for a factsheet summarizing the Sustainable Aviation Fuel recommendations.

From pioneering technical advancements to commercial aviation dominance, the United States has been a leader in the aviation sector since the industry’s inception. In today’s era of global economic development, the aviation industry is projecting major growth and, with it, major challenges in the context of rising greenhouse gas emissions. Forward-thinkers in every sector of the economy are pursuing technologies and practices to slash emissions. While aviation is no exception, decarbonizing the sector is particularly challenging due to weight limitations and the energy density of fuels, which create a narrow window of acceptable solutions to cut aviation emissions. New airframes, engines, and operational practices can reduce fuel burn beyond historic rates, but today’s two percent average annual fuel efficiency improvements are easily overtaken by annual passenger growth. Some proposed solutions to reduce aviation emissions include shifts to rail and more efficient transportation options that can substitute for some air traffic where practical (i.e., over shorter distances). However, among the best options for reducing emissions in the near- to mid-term is the deployment and uptake of non-petroleum jet fuel, commonly referred to as Sustainable Aviation Fuel (SAF).

The definition of SAF varies significantly depending on context, with most statutory definitions including criteria on carbon intensity, environmental safeguards, or feedstocks. In general, SAF is a jet fuel which is produced from non-petroleum feedstocks as a biofuel or hydrogen-based synthetic fuel. The value proposition of SAF is three-fold: its total lifecycle emissions are lower than fossil jet fuel, it can be produced domestically, and it is certified for use in today’s aircraft. While all three of these components demonstrate its potential to reduce jet fuel emissions in the United States and abroad, its compatibility with today’s aircraft is key to its high near-term adoption potential. The average 25-year lifespan for passenger aircraft, of which there are over 7,000 amongst U.S. carriers, necessitates drop-in liquid fuels regardless of the pace of advancement for electric and hydrogen-powered aircraft.

The nascency of the SAF market is both a challenge and an opportunity. Jet fuel consumption in the United States reached 25.3 billion gallons in 2023, and only 23 million gallons of that fuel was SAF (a penetration rate of 0.09 percent). Decarbonizing the aviation industry will require accelerating the adoption of SAF. To help meet this challenge, the Center for Climate and Energy Solutions established a technology working group that convenes stakeholders from across the SAF ecosystem (see Figure 1) to examine the key technical, market, and policy solutions needed to remove key barriers toward the sustainable commercialization of this important technology. This brief offers a shortlist of four policy recommendations following the working group’s inaugural year.

Summary of Policy Priorities

The column labeled “leads” indicates whether the policy falls under federal legislative L and or federal administrative A purview.

Conclusion

The U.S. federal government has reinforced its global leadership in energy production, aviation, and innovation by setting ambitious goals to produce three billion gallons of SAF by 2030 and 35 billion gallons by 2050. Existing federal programs, such as tax and market-based credits, government grants, and access to loan guarantees are foundational to scaling domestic SAF production. Despite these existing federal programs, significant barriers remain to scaling SAF in the United States. The cost of SAF remains high relative to conventional jet fuel and there are gaps in accessible up-front capital for commercial SAF plants. Continuous improvement of existing programs and thoughtful additions of new initiatives will be essential for the United States to adopt a diverse, low-carbon fuel mix in its aviation sector. These efforts are also vital for maintaining the nation’s competitive edge in the emerging global SAF market. The policy recommendations offered in this brief were developed through discussions with stakeholders across the SAF ecosystem and offer a potential path forward in the pursuit of this objective. Congress and the administration should (1) extend tax credits for SAF production; (2) update the RFS; (3) fund additional demonstration and pioneer production projects; and (4) enact federal economy-wide carbon pricing and authorize the implementation of CORSIA to build a robust domestic SAF supply as a critical component of a broader decarbonization strategy.