Climate Now
Sustainable Aviation Fuel: Episode 4
Aug 6, 2024
Dive into the intricate world of sustainable aviation fuel and discover how the Renewable Fuel Standard shapes its landscape. Unpack the mysterious RIN system, a powerful yet misunderstood tool that acts as a subsidy and financial asset. Experts discuss the political nuances behind biofuel standards and their bipartisan roots. Explore the economic hurdles faced by airlines in securing SAF and the implications of fluctuating RIN prices. This discussion reveals the complexities behind America's transition to renewable fuels.
36:20
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Quick takeaways
- The Renewable Identification Number (RIN) system is complex and serves multiple roles, significantly impacting the renewable fuel industry's market dynamics.
- Political influence and economic challenges are crucial factors shaping the growth and feasibility of sustainable aviation fuel (SAF) in the airline industry.
Deep dives
Understanding the Renewable Fuel Standard (RFS)
The Renewable Fuel Standard (RFS) is a critical program established by Congress to boost the U.S. renewable fuel industry. Managed by the Environmental Protection Agency (EPA), it sets annual production mandates for various renewable fuels, which play a significant role in promoting sustainability in aviation. A key mechanism within this program is the Renewable Identification Number (RIN), a unique identifier assigned to renewable fuels that tracks their production. The RIN system is described as one of the most complex environmental credits, making it essential for stakeholders in the renewable fuel market to grasp how it functions.
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