Abstract:

This paper explores policy options for including aviation fuels in a hypothetical national LCFS policy. The authors expand on previous research on the potential impacts of a national LCFS in the road sector to model the inclusion of the aviation sector in a national LCFS scheme. The authors then explore the impact of different policy design options, including a GHG reduction target, sectoral obligation, and the use of supplementary tax credits on the mix of fuels supplied. Across these scenarios, the study compares the total quantity of SAFs deployed, the share of second-generation SAFs, and the total climate impacts of the policy.