If the U.S. and Europe can’t agree on sustainable aviation fuel, what happens?

Airlines across the U.S. and Europe have been eyeing sustainable jet fuel as a way to meet emissions mandates, but there are significant differences between the two regions.

In the U.S., feedstocks can qualify for tax credits as long as they meet certain requirements, and in Europe, feedstocks like corn, soy, and sugarcane are excluded and cannot be used towards quotas. Instead, synthetic fuels, such as those derived from captured carbon, are required.

Economists say this puts airlines, fuel investors, and producers in a bind, especially for airlines involved in international travel. In the U.S., some lawmakers are backing the “Farm to Fuselage Act” to create a new market for producers.