A coalition of aviation industry companies in Canada—along with other stakeholders—have issued a letter to the Honourable Chrystia Freeland, the country’s Deputy Prime Minister and Minister of Finance, seeking the provision of governmental financial incentives towards the production of sustainable aviation fuel (SAF) in the country’s latest budget.

The letter noted that SAF (in its pure unblended form) can reduce lifecycle carbon emissions by up to 80 percent over conventional jet-A and pointed to Canada’s inherent advantages in producing the renewable fuel. “We have varied sustainable biomass in abundance, unparalleled experience in resource development and renewable energy, and most importantly, stakeholders across the entire value chain ready to act and be leaders in this front.”

Despite these, the group added that the Canadian government has yet to implement any incentives to ensure domestic SAF production.

The letter’s signatories—which include Bombardier, Airbus, Air Canada, the Canadian Business Aviation Association, IATA, the Canadian Airports Council, and others—urged the government to follow the recommendations set forth by the Canadian Council for Sustainable Aviation Fuels. They include a refundable investment tax credit of 50 percent for SAF production facilities, a 10-year production tax credit similar to the one implemented in the U.S. or other revenue-certainty mechanisms to support SAF production and boost offtake, and the introduction of a book-and-claim system for SAF use in Canada.

“Canada must ensure that our aviation industry can access affordable ways to decarbonize,” the group stated. “Domestic SAF incentives are essential to ensure Canada’s airlines and aerospace industries are positioned to be competitive internationally, and to meet the ambitious emissions reduction goals for the aviation sector.”