The U.S. Treasury Department last week officially announced plans to approve an updated Department of Energy carbon intensity model called GREET to determine eligibility for sustainable aviation fuel (SAF) tax credits.

The GREET model, short for Greenhouse Gases, Regulated Emissions and Energy Use in Technologies, is more favorable for airlines to meet their carbon reduction targets by using SAF made from soybean oil and ethanol. The updated model is slated to be...