Biden Administration Preparing Preliminary Climate Model For Sustainable Aviation Fuel Subsidy That Will Be More Restrictive Than Ethanol Producers Had Hoped; Ethanol Not Expected To Automatically Qualify As An SAF Feedstock Under The Model Unless Made From Corn Linked To One Of Just Three Sustainable Agriculture Techniques; Model Could Be Expanded Later In The Year
Portfolio Pulse from Benzinga Newsdesk
The Biden Administration is developing a preliminary climate model for Sustainable Aviation Fuel (SAF) subsidies, which will be more restrictive for ethanol producers than anticipated. Ethanol will not automatically qualify as an SAF feedstock under this model unless it is produced from corn that utilizes one of three specific sustainable agriculture techniques. The model may be expanded later in the year.
April 05, 2024 | 6:07 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may see indirect effects from the Biden Administration's new climate model for SAF subsidies due to its broad exposure to the market, including sectors impacted by these regulations.
While SPY is not directly involved in the production of ethanol or aviation fuels, its broad market exposure means that regulatory changes affecting these sectors could indirectly influence the ETF's performance. The impact is considered neutral in the short term due to the diversified nature of SPY's holdings and the preliminary stage of the climate model.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30