Ottawa, ON, February 6, 2024 – Canada’s sustainable aviation ecosystem, including airlines, airport authorities, aerospace manufacturers, and industry groups, have written to Finance Minister Chrystia Freeland seeking bold action in Budget 2024 to incentivize the Canadian production of Sustainable Aviation Fuels (SAF).

SAF is a low carbon alternative to conventional jet fuel; SAF usage is the most viable path for aviation to meet net zero commitments by 2050.  However, in the absence of a comprehensive national SAF policy and incentives, Canada currently produces no meaningful quantities of SAF, despite significant sustainable resource and skills advantages.

Stakeholders from across the SAF value chain are requesting the federal government adopt the following recommendations for inclusion in Budget 2024 to incentivize domestic SAF production in Canada:

  • Implementation of refundable investment tax credits at a rate of 50% for SAF production facilities.
  • Introduction of a Production Tax Credit (PTC) with a ten-year horizon competitive with the one in the United States.
  • If a PTC is not possible, Canada should introduce a commodity price contract for difference or revenue certainty mechanism to support SAF production and boost its uptake.
  • Allowing for a book and claim mechanism for SAF use in Canada.

“This is a critical time for the aviation industry when it comes to decarbonization, and Canada has an opportunity to create a landscape for SAF production, which will provide economic and environmental benefits countrywide” said Geoff Tauvette, Executive Director of the Canadian Council for Sustainable Aviation Fuels.  “Domestic SAF incentives are essential to ensure Canada’s airlines and aerospace industries are positioned to be competitive internationally, and to meet ambitious emissions reduction goals for the aviation sector.”

The Canadian aviation ecosystem stands ready to work with the federal government to create economic opportunities that will contribute towards building a decarbonized country, and this starts with implementing a federal policy framework to build a domestic SAF supply chain that will help achieve lower GHG emissions in the aviation industry.

“Air travel is essential to keep Canadians connected to their loved ones, to business opportunities, and to the world,” said Jeff Morrison, President and CEO of the National Airlines Council of Canada.  “Despite ongoing initiatives by airlines to decarbonize, access to a domestic supply of SAF is the most critical element required to meet net zero targets. Canadian SAF production is not only essential for decarbonization but represents a significant economic and export opportunity for Canada.”

The open letter can be found here.

About the National Airlines Council of Canada:

The National Airlines Council of Canada represents Canada’s largest national and international passenger air carriers:  Air Canada, Air Transat, Jazz Aviation LP and WestJet.  It promotes safe, sustainable, accessible and competitive air travel by advocating for the development of policies, regulations and legislation to foster a world-class transportation system.

For more information, contact Josie Sabatino;, 250-649-6856