White House Set to Back Tougher Climate Model for Ethanol, Sources Say
Adjustment in Ethanol Modeling to Impact Greenhouse Gas Emissions
President Joe Biden’s administration is set to announce a significant adjustment to its scientific modeling for ethanol. This adjustment will reveal that the corn-based fuel is less effective at reducing greenhouse gas emissions than previously estimated, according to three sources briefed on the plans.
Impact on Sustainable Aviation Fuel Tax Credits
The adjustment will make it more challenging for ethanol producers to participate in new U.S. tax credits for sustainable aviation fuel. This could have a significant impact on the industry’s growth. However, there will still be a pathway for ethanol producers to qualify for the subsidies by partnering with corn growers who employ sustainable farming practices.
Emphasizing Climate-Smart Farming Techniques
The adjustment aims to more accurately account for the environmental damage caused when land is converted into farms to grow corn. It also seeks to reward climate-smart farming techniques like no-till farming and covered crops, according to the sources.
Political Implications and Industry Outlook
The move is expected to be a middle ground for the White House, as it navigates pressure from environmentalists and the ethanol industry. The ethanol industry is looking to secure its financial future amid the rise of electric vehicles, which pose a threat to their current market in gasoline consumption.
Uncertainty and Future Projections
A White House spokesman emphasized that no final decision has been made on the climate model. Speculation about determinations is premature. The administration’s climate bill includes a tax credit for sustainable aviation fuel, aligning with its broader efforts to decarbonize the transport sector.
Revised Climate Model and Lobbying Efforts
The Biden administration previously backed a climate model favored by the ethanol industry but promised to revamp it and release the details in March. This has led to intense lobbying efforts by industry and environmentalists to quantify environmental damage and climate-smart agriculture.
