2025 Valero Report on Guiding Principles - Flipbook - Page 15
Introduction
Safety
Environment
Community
People
Governance
Appendix
SAF Mandates are Expanding Globally
SAF Mandates
Program aims to offset growth in CO 2 emission from international aviation above 85% of 2019 emissions; participation is
voluntary over 2021-2026 and becomes mandatory for participating nations starting in 2027
CORSIA15
EU16
2% in 2025, 6% in 2030, 20% in 2035, 34% in 2040, 42% in 2045 and 70% in 2050
Brazil
GHG emission reduction of 1% in 2027, progressively increasing to 10% by 2037, through the use of SAF
France17
1.5% in 2024, 2% in 2025 and 5% in 2030
Indonesia
1% in 2027 on international 昀氀ights, increasing to 2.5% in 2030
Malaysia
1% in 2026, aiming to increase to 47% in 2050
Norway
0.5% in 2020, increasing to 30% in 2030
Singapore
1% in 2026, aiming to increase to 3%-5% in 2030
Sweden17
1% in 2021 and increasing to 30% in 2030
UK
2% in 2025, increasing linearly to 10% in 2030 and then to 22% in 2040
British Columbia
1% in 2028, 2% in 2029 and 3% in 2030
Potential Policies
Denmark,17 Finland,17 India, Japan, Netherlands17 and South Korea
Indirect Land Use Change (ILUC) negatively impacts certain domestic crop-based
biofuels, benefits certain imported biofuels, and is not fairly applied to land used for
other renewable energy sectors, like solar and batteries.
Most of the biofuels policies commonly assess ILUC penalties to account for indirect land conversion that potentially
result from increased biofuels demand. These ILUC penalties – which tend to be 昀椀xed values rather than re昀氀ecting the
actual practices of the feedstock producer – can account for more than half of a biofuel's carbon intensity and be the
ultimate determiner of the fuel's quali昀椀cation under such low-carbon programs. As shown in the charts below, the EPA
Renewable Fuel Standard (RFS) penalizes soybean with an ILUC of 80% of the entire CI calculation, and corn ethanol with
an ILUC of 36% of the CI. California’s LCFS penalizes soybean with 47% of the CI and corn ethanol with an ILUC of 28% of the
CI of the fuel. These are among the highest of such penalties imposed on U.S. biofuels programs. By contrast, the same
models assign a much lower ILUC penalty to Brazilian sugarcane ethanol. For instance, the RFS penalizes sugarcane
ethanol by only 13% of the CI18 and the LCFS assigns the lower penalty of all biofuels to sugarcane ethanol.19
Corn Ethanol/SAF
Soybean Oil BD/RD/SAF
EPA RFS
EPA RFS
CA LCFS
CA LCFS
Canada CFR
Canada CFR
40B BTC
40B BTC
ICAO CORSIA
ICAO CORSIA
0
20
40
60
80
100
0
10
20
non-ILUC
Potential reduction for ag practices
30
40
50
60
70
CI (gCO 2 e/MJ)
CI (gCO 2 e/MJ)
ILUC
non-ILUC
Potential reduction for ag practices
ILUC
See Notes 20, 21, 22, 23, 24, 25 and 26 beginning on page 72 for chart details.
Canada’s CFR excludes ILUC from the model for certain crops due to limitations such as lack of data and high
uncertainty. 22 23
Inconsistently, ILUC penalties are not extended to the installation of solar arrays and wind turbines, or the extraction
of minerals to support EV batteries, despite their potential for signi昀椀cant direct and induced land use changes. For
instance, the Department of Energy projects that 10.4 million acres of solar arrays will be needed to help decarbonize
the nation’s power grid – as much as 83% of that acreage will likely be farmland, 27 which will need to be replaced.
Valero supports policies that eliminate inconsistencies in emissions calculations that disadvantage U.S.
domestic crop-based biofuels. If ILUC is not entirely excluded (as in the case of solar arrays and stripped mining),
at least, long-standing farmland in the U.S. Midwest should not be treated unfavorably compared with foreign
crop-based fuels coming from potentially new deforested land.
Valero Report on Guiding Principles •
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