Position Statement

Sustainable Aviation Fuels Incentives
November 2025

Expanding the production and use of sustainable aviation fuel (SAF) is essential to decarbonizing air travel and achieving global climate goals. Aviation burned 114 billion gallons of fuel last year, making it the fastest-growing source of carbon emissions across all sectors. SAF is a solution that can begin mitigating the industry’s carbon footprint right now, creating 70 to 80 percent less planet-warming pollution than traditional jet fuel.

Yet, without targeted incentives, the SAF industry cannot reach the scale required to make a meaningful impact. The costs of developing, refining, and distributing new fuel technologies remain far higher than conventional jet fuel - and until the market matures, incentives are the bridge between aspiration and reality.

Across the country, states such as Illinois and Minnesota are advancing effective incentive programs that keep SAF production moving forward. Internationally, Europe, the United Kingdom, Japan, and Australia are using mandates, credits, and subsidies to accelerate adoption - recognizing that early policy support is the catalyst for long-term competitiveness.

Recent cuts in credit programs and renewable fuel policies have placed the state’s leadership in sustainable fuel innovation at risk. To sustain momentum, California must restore and strengthen incentive frameworks that reward innovation, lower carbon intensity, and drive investment in domestic production. The pathway to a cleaner aviation future is clear: sustained, smart incentives are not subsidies for the past - they are investments in the future of flight and climate responsibility.

Data source: The International Energy Agency