US Set to Object to Green Jet Fuel Recommendation at UN Aviation Council, Sources Say

Summary

• Global aviation sector strives for net zero emissions by 2050
  
• Sustainable aviation fuel made from ethanol seen as one option
  
• Brazil ethanol producers fear US interference in UN's SAF rules
  

MONTREAL/SAO PAULO June 17 (Rtrs) - The U.S. is expected to object this month to a recommendation at the UN Aviation Agency Council that Washington says unfairly favors Brazilian corn farmers at the expense of U.S. producers in development of green jet fuel, two sources familiar with the matter told Reuters. One of the sources said the discussions could be resolved by a compromise. Still, Brazil's corn ethanol producers have warned that the disagreement could undermine global confidence in certification of sustainable aviation fuels.

Global carriers, aiming for net zero emissions by 2050, are being pressed to swap kerosene for cleaner but costly alternatives made from materials such as municipal waste or cooking oil. The International Air Transport Association estimates the long-term cost of the aviation sector's green transition at $4.7 trillion. Global SAF now accounts for less than 1% of industry’s total jet fuel usage. But products that can make fuel with lower emissions should find growing markets due to European quotas at airports, tax incentives and global targets.

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With U.S. corn production outpacing domestic demand, farmers and ethanol producers in the Midwest have said they are trying to lower the emissions involved in producing and marketing corn ethanol for new markets like green jet fuel. For instance, some U.S. ethanol producers have suggested using carbon capture technology.

The Iowa Corn Growers Association, which supports carbon capture and sequestration projects to lower emissions, has said Brazil already has a lower carbon score for corn ethanol than the U.S., which would give the South American country an advantage in meeting demand from airlines.

The U.S. State Department raised objections in March to a recommendation from an International Civil Aviation Organization (ICAO) technical panel, which has proposed criteria for SAF. The U.S. argued that the recommendation unfairly helps Brazil over the rest of the world as it would award a lower carbon score to multicropping, or farming when two or more crops like corn and soy are grown on the same land, a common practice in the South American nation.

The recommendation is coming to ICAO's 36-member council for review ahead of the global agency's triennial assembly this fall. ICAO cannot impose rules on member states, but countries that approve the agency's standards and guidance usually abide by them.

The U.S. State Department declined comment. Brazil’s agricultural ministry acknowledged it received questions from Reuters but did not respond further. Montreal-based ICAO was not immediately available for comment.

In Brazil, where annual corn ethanol output is forecast to almost double to around 16 billion litres by 2032, the producers’ association UNEM told Reuters that recommendations from ICAO’s Committee on Aviation Environmental Protection (CAEP) should be free from politics.

"Any attempt at political interference would undermine not only the decision-making process, but also the international community’s confidence in the sustainable aviation fuels certification system," said Bruno Alves, director of institutional relations and sustainability at UNEM.

"UNEM believes it is essential that this technical and transparent process be respected and preserved. Attempts to delegitimize or politicize the results would be extremely serious."