The minute
- Brazil’s decree regulating sustainable aviation fuel (SAF) did not include any tax incentives or relief on consumption of the biofuel.
- Airlines expected the decree to bring tax breaks ahead of the start of mandatory SAF blending targets.
- The sector argues it is being forced to absorb the higher cost of SAF without government support.
Why it matters
SAF is significantly more expensive than conventional jet fuel, and without fiscal incentives, airlines face a direct hit to operating costs once blending mandates take effect. The absence of tax relief could slow adoption and put Brazilian carriers at a competitive disadvantage relative to peers in jurisdictions that subsidize the transition.
The frustration comes at a critical moment, as the aviation industry globally is under pressure to decarbonize and SAF is considered the most viable near-term solution. Airlines argue that the cost burden should not fall entirely on operators if the government wants to accelerate the energy transition in aviation. Read more via Reset.
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