- Aviation officials warn that President-elect Donald Trump’s pledge to repeal the Inflation Reduction Act could slow the expansion of sustainable aviation fuel (SAF) projects.
- The aviation sector fears losing tax credits and subsidies critical for scaling up green jet fuel production, which is crucial to meet net-zero emissions by 2050.
- Industry leaders stress that policy certainty is vital for future SAF investments and warn that any rollback could increase costs and delay progress.
Aviation officials fear President-elect Donald Trump could derail green jet fuel expansion by reversing tax credits crucial for the industry’s growth.
At an airline industry conference in London, officials from the International Air Transport Association (IATA) and American Airlines warned about the potential impact on clean jet fuel. Their comments offer early insights into how a Trump presidency might affect the emerging sector.
“There are big risks tied to Trump’s policies and how they’ll affect the climate change fight,” said Marie Owens Thomsen, IATA’s Chief Economist.
Officials expressed concern over Trump’s pledge to repeal the Inflation Reduction Act (IRA), signed by outgoing President Joe Biden in 2022. The IRA provides billions in clean energy subsidies and is a cornerstone of Biden’s climate policy. European airlines, which face a sustainable aviation fuel (SAF) mandate starting in 2026, consider the IRA a valuable model for promoting SAF investment.
Trump, a well-known climate sceptic, vowed to rescind the IRA, although Congress must approve such action. Industry experts say losing the IRA could hurt future SAF projects, even though existing production facilities will likely continue operating.
Ronce Almond, head of intergovernmental affairs at American Airlines, stressed the importance of policy stability. “The market needs certainty to grow production,” Almond said. “Rolling back the IRA could stop new projects from moving forward.”
Sustainable aviation fuel accounts for only 1% of global jet fuel consumption. Experts agree that production must rapidly increase if the industry hopes to meet its net-zero carbon emissions target by 2050. However, Trump’s presidency could slow this progress.
“The industry is watching closely,” Thomsen said. Without the IRA’s incentives, officials worry that the push for cleaner fuels might weaken.
Despite these challenges, airlines remain under pressure to reduce emissions. European airlines are preparing for the SAF mandate, but officials fear the global effort to expand clean aviation fuel could stall without U.S. backing.
Thomsen emphasised the need for continued investment to grow the green fuel supply. “We need a steady flow of investment to meet future targets,” she said. Trump’s stance on clean energy, however, could make investors hesitant.
The aviation sector already struggles to meet climate goals, and any further delay could raise costs for both airlines and consumers. Industry leaders argue that consistent policies can help reduce these risks and ensure steady progress toward decarbonisation.
Aviation officials are urging governments to support clean energy and incredibly sustainable fuels. For now, the future of green jet fuel remains unclear, mainly hinging on Trump’s policy decisions.
Trump’s presidency could create significant roadblocks, making it harder for the aviation industry to achieve its climate goals. As the transition nears, the sector faces growing uncertainty about the future of green jet fuel production and the broader fight against climate change.