White house to toughen ethanol's climate model

USAgNet - 02/19/2024

The White House is set to unveil revisions to ethanol's climate model, signaling a shift towards stricter standards for the corn-based fuel's environmental impact.

The adjustment aims to align ethanol's emissions profile more accurately with environmental realities, potentially complicating ethanol producers' access to tax credits, particularly for sustainable aviation fuel.

The proposed changes come amidst growing concerns about the environmental footprint of ethanol production, particularly regarding land use changes.The revised model intends to better account for the environmental damage associated with converting land into farms for corn cultivation. Additionally, it aims to incentivize climate-smart farming practices such as no-till farming and covered crops.

Politically, the adjustment presents a delicate balancing act for the White House, caught between pressure from environmentalists advocating for reduced reliance on farm-based fuels and the ethanol industry seeking financial support amidst evolving transportation trends, including the rise of electric vehicles.

Ethanol, primarily used as a gasoline additive, faces challenges as gasoline consumption plateaus. The White House's climate legislation includes tax credits for sustainable aviation fuel producers, aligning with broader efforts to decarbonize the transport sector.

The proposed adjustment to ethanol's climate model has sparked intense lobbying efforts from both industry and environmental groups. These stakeholders are engaged in discussions on how to quantify environmental impacts, including land use changes and climate-smart agriculture, as part of the revised modeling.

While no final decision has been made, the White House's commitment to releasing details in March underscores the administration's determination to address environmental concerns while supporting sustainable fuel production.


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