Advanced Biofuels Canada Welcomes Draft Regulation to Exempt Sustainable Aviation Fuel from the Federal Carbon Charge

(Advanced Biofuels Canada/EIN Newswire) Proposed update brings Canada closer to greater SAF use in aviation fuel -- Advanced Biofuels Canada (ABFC) recognizes the government of Canada for taking concrete steps towards decarbonizing aviation by publishing draft regulations exempting Sustainable Aviation Fuel (SAF) from the federal carbon charge under the Greenhouse Gas Pollution Pricing Act (GGPPA).

The draft regulations create a definition of ‘bio-aviation fuel’ and establish a full exemption of SAF from the fuel charge (carbon tax) as of August 10, 2022 when uplifted to an aircraft in a Canadian province or territory where the federal GGPPA applies (currently, AB, SK, MB, ON, YT, and NT).

“Updating the federal carbon charge to exempt low carbon fuels like SAF is a smart, common sense move to encourage their adoption. As policies to decarbonize aviation fuel advance, this draft regulation helps bring Canada closer to stimulating SAF use in aviation fuel”, said ABFC President, Ian Thomson. “ABFC encourages the Government of Canada to finalize this bio-aviation fuel exemption, and extend this approach to all other low carbon intensity fuels. Further, we recommend governments adopt fuel policies that create volumetric and carbon intensity-based requirements for blending SAF into jet fuel in Canada.”

The value of the ‘bio-aviation’ carbon tax exemption is CAD 13 cents per litre until March 31, 2023; with annual increases to the federal carbon pricing rates, the bio-aviation exemption will increase to CAD 44 cents per litre in 2030 at the CAD $170 per tonne carbon charge rate. SAF is eligible to create compliance credits under the recently published Clean Fuel Regulations, although there is currently no obligation to reduce the carbon intensity of jet fuel in Canada. Canada’s Aviation Climate Action Plan released in August 2022 includes an aspirational goal of 10% SAF use by 2030.

Advanced Biofuels Canada/ Biocarburants avancés Canada is the national voice for producers, distributors, and technology developers of advanced biofuels. ABFC’s SAF Caucus directly engages with governments and aviation sector stakeholders towards creating a robust SAF production and use sector in Canada.

ABFC members are global leaders in commercial production of advanced biofuels and renewable synthetic fuels, with over 24 billion litres of installed annual capacity worldwide. Our members include Canada’s leading advanced biofuels producers and technology innovators and are actively developing new clean liquid fuels production and distribution assets and operations in Canada. For information on Advanced Biofuels Canada and our members, visit: www.advancedbiofuels.ca. READ MORE