Airlines are calling on the federal government to roll out measures that will spark production of sustainable aviation fuel in Canada.

Investors and would-be suppliers need incentives to start churning out the greener oil, a pair of industry groups said. They91裸聊视频檙e hoping Ottawa can match new programs in the United States and ultimately help cut airplane pollution, which accounts for about two per cent of global carbon dioxide emissions, according to the International Energy Agency.

The country91裸聊视频檚 long history of resource development, agriculture, renewable energy and aircraft manufacturing should put it at the forefront of the push for greener skies, according to the Canadian Council for Sustainable Aviation Fuels and the National Airlines Council of Canada.

However, Canada has yet to commercially produce any sustainable aviation fuel, also known as SAF.

Typically derived from used cooking oils, animal fats or organic waste, the productshaves off about 80 per cent of a plane91裸聊视频檚 emissions.

Airlines have two main requests for Ottawa to foster fuel-making factories and long-term production: an investment tax credit at a rate of 50 per cent on manufacturing facilities, and a production tax credit with a 10-year horizon 91裸聊视频� on par with an incentive south of the border. (Commodity price contracts that aim to put a floor price for SAF would be one alternative to the latter.)

American producers are already eligible for a tax credit of up to US$1.75 per gallon (3.8 litres) under the Inflation Reduction Act.

91裸聊视频淐ompare that to Canada, which is nothing,91裸聊视频� said Jeff Morrison, who heads the national airlines council.

91裸聊视频淚f you91裸聊视频檙e an energy company and you91裸聊视频檙e looking at SAF as an opportunity and you91裸聊视频檙e looking, 91裸聊视频榃here do I go?91裸聊视频� 91裸聊视频� it91裸聊视频檚 kind of a no-brainer.91裸聊视频�

Last year, the federal government pledged $350 million to support decarbonization of the aerospace sector, establishing a national network that backs research and development projects ranging from alternative fuels to aircraft design.

But the blueprint offered none of the manufacturing carrots that carriers were demanding, Morrison said.

91裸聊视频淩esearch into green technologies and SAF production incentives need to go hand in hand,91裸聊视频� he said.

The two groups are also asking for a 91裸聊视频渂ook-and-claim system,91裸聊视频� whereby producers enter or 91裸聊视频渂ook91裸聊视频� the fuel they91裸聊视频檝e distilled and customers 91裸聊视频渃laim91裸聊视频� the product they91裸聊视频檝e bought, receiving a certificate to be used in corporate emissions reporting and for tax purposes.

The government has set a goal of 10 per cent SAF use by 2030. The aviation industry is targeting net-zero emissions by 2050 through bodies such as the International Air Transport Association trade group and the International Civil Aviation Organization, a United Nations agency.

91裸聊视频淚f we91裸聊视频檙e serious about meeting a decarbonization, net-zero objective, roughly two-thirds of the activity needed to get there is going to come from SAF,91裸聊视频� Morrison said.

He said other steps, such as electric batteries for short-haul flights and green hydrogen 91裸聊视频� gas produced using renewable energy 91裸聊视频� could pick up the rest of the emissions slack in air travel, though widespread use of either power source remains farther on the horizon.

The advantage of sustainable aviation fuel is that it91裸聊视频檚 a 91裸聊视频渄rop-in91裸聊视频� power source. Engines and fuel pumps need little adjustment to handle a half-and-half blend of SAF and traditional jet fuel.

The world91裸聊视频檚 two main commercial jet makers, Airbus SE and Boeing Co., aim to be 100 per cent SAF-compatible by 2030.

Production rates for SAF have doubled every year for the past three years, amounting to about 600 million litres in 2023, according to the sustainable aviation council. They91裸聊视频檙e expected to triple this year. But even with the boost, the total will amount to just 0.5 per cent of global fuel demand.

Part of the slow pace of supply relative to demand comes down to money. The green alternative costs at least four times more to churn out than the petroleum-derived kind.

The prohibitive price of sustainable fuel 91裸聊视频� along with the rising urgency to deploy it amid stricter government rules and a heating planet 91裸聊视频� mean the aviation industry faces an 91裸聊视频渆xistential threat91裸聊视频� if it does not work to decarbonize quickly, said Deborah Flint, who heads the Greater Toronto Airports Authority.

91裸聊视频淚t91裸聊视频檚 pretty jarring,91裸聊视频� she told attendees at a panel on clean aerospace at the Canadian Club in Toronto in October.

91裸聊视频淭he threats of reducing the (aerospace) business or making the business too expensive are very real and imminent for us.91裸聊视频�

Big players such as Air Canada are on board with the push toward greater fuel efficiency, buying a raft of new cost-saving planes such as the Boeing 787 Dreamliner and 737 Max and the Airbus A220.

In April, it announced the purchase of 9.5 million litres of SAF from Finland-based oil refiner Neste. But the amount totalled less than 0.2 per cent of the 5.71 billion litres of fuel Air Canada consumed in 2019.

A spokesperson for Transport Minister Pablo Rodriguez confirmed that members of his office will sit down with representatives from industry next week.

91裸聊视频淐anadians are travellers,91裸聊视频� Morrison said. 91裸聊视频淎nd this is the primary, most effective way to decarbonize air travel in Canada and around the world.

91裸聊视频淧eople care about that,91裸聊视频� he continued. 91裸聊视频淭hey want to know that when they91裸聊视频檙e travelling, they91裸聊视频檙e not contributing to global climate change.91裸聊视频�

Christopher Reynolds, The Canadian Press