Evaluating the potential role of a National Low-Carbon Fuel Standard to support sustainable aviation fuels
Low-carbon fuel standards aim to reduce greenhouse gas emissions from transport fuels by setting GHG intensity reduction targets and allowing the generation of credits for low-carbon fuels. This study explores several different options for the inclusion of aviation fuels in a hypothetical future national low-carbon fuel standard (LCFS) policy, focusing on the United States.
The analysis outlines eight scenarios with different policy designs and objectives. These scenarios include different GHG intensity reduction targets, credit price caps, tax credits for SAFs, and obligations for aviation and road transport. The findings highlight the potential of LCFS policies to drive the deployment of SAFs in the aviation sector, helping to reduce greenhouse gas emissions. The study underscores the importance of policy design, including GHG reduction targets, credit price caps, tax incentives, and feedstock-specific safeguards, in shaping the effectiveness of LCFS policies in promoting sustainable aviation fuels.