As the Biden administration promotes clean energy and fuel subsidies under the Inflation Reduction Act (Climate Bill) and other initiatives, leaders in the energy industry, including executives from Chevron and Exxon Mobil, are calling for clearer regulations. During the Milken Global Conference, Exxon CEO Darren Woods highlighted the need for regulatory clarity, noting the incentives for investing in clean energy are still under development.
The administration’s recent updates to the Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model and the introduction of the Climate Smart Agriculture (CSA) Pilot Program are steps toward enabling corn-based ethanol to qualify for sustainable aviation fuel credits. However, there remains uncertainty about the future of these credits, which are set to continue through the end of this year and are expected to be updated for 2025-2027.
The fate of the tax incentives beyond 2027 is another major uncertainty. This could potentially dampen investment in clean energy, despite historical tendencies to extend tax credits for renewable fuels.
