Biofuels Are Essential to Reducing EU ETS Carbon Costs and Meeting Carbon-Neutral Growth Goals, Says Report
(GreenAirOnline.com) Although not commercially viable yet, the EU Emissions Trading Scheme (EU ETS) offers a strong financial, as well as environmental, incentive for the adoption of jet biofuels, says a new report by EQ2. Based on industry assumptions of 15% and 30% consumption of biofuels in 2020 and 2030 respectively, they could contribute to potential savings for airlines involved in the EU ETS of $2.01 billion in 2020 and $5.84 billion in 2030 on the purchase of carbon credits. Based on the current EU ETS carbon price for 2012 of €15 and the 2009 average jet fuel price of $1.69 per gallon, every gallon of jet fuel burned would incur carbon costs of an additional $0.21, equivalent to a premium of 12.4%.
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