The UK government’s latest move to bolster the sustainable aviation fuel (SAF) industry is a bold step towards greener skies and a more robust economy. The newly published consultation outlines a comprehensive plan to support SAF producers, setting the stage for a significant shift in the aviation sector. By introducing a revenue certainty mechanism (RCM), the government aims to provide a steady income flow for SAF producers, mitigating the risks associated with price fluctuations. This move is not just about environmental stewardship; it’s a strategic economic play that could unlock up to £5 billion for the UK economy and support up to 15,000 new jobs by 2050.
The aviation industry is a significant contributor to greenhouse gas emissions, and the push for SAF is a critical component in the UK’s clean energy mission. SAF can reduce emissions by up to 70% compared to traditional jet fuels, making it a game-changer in the fight against climate change. The government’s commitment to a SAF Mandate, starting in January 2025, ensures that a growing percentage of aviation fuel will come from sustainable sources. This mandate, one of the first of its kind globally, positions the UK at the forefront of decarbonising air travel.
The revenue certainty mechanism is designed to limit costs for airlines and holidaymakers, ensuring that any price increases align with typical ticket price variations. This approach not only supports the SAF industry but also protects consumers from significant cost hikes. The mechanism, combined with the SAF Mandate, will drive significant investment into the SAF sector, fostering innovation and creating green jobs. Aviation Minister Mike Kane underscored the government’s commitment, stating, “We are committed to building the technology and fuel supply that will see greener flying become a reality in a way that protects consumers. As part of our Plan for Change, these proposals will power up sustainable aviation fuel production in the UK, support thousands of green jobs, and bolster expansion plans.”
The consultation, running from 3-31 March, will pave the way for the Sustainable Aviation Fuel (Revenue Support Mechanism) Bill, set to be laid in Parliament in the spring. This initiative builds on the £63 million recently announced to boost alternative fuel production and aligns with the government’s mission to make the UK a clean energy superpower. The UK’s leadership in setting new carbon limits on aircraft at the International Civil Aviation Organization (ICAO) further solidifies its commitment to sustainable aviation. By mandating that all new aircraft types become 10% more efficient from 2031, the UK is not only cutting emissions but also reducing fuel costs, benefiting both passengers and the environment.
Karen Dee, Chief Executive of AirportsUK, highlighted the economic benefits, stating, “SAF will play a key role in decarbonising aviation, and a revenue certainty mechanism will not only ensure the UK can access enough supply but also that we can benefit from thousands of jobs and billions in investment. These investments will allow the UK’s global air connectivity to expand sustainably within our net zero targets and play an increasing role in growing our economy, something the government is prioritising to drive up the prosperity of the whole country.”
The UK’s proactive stance on SAF and decarbonisation sets a global precedent. It challenges other nations to follow suit, driving innovation and investment in sustainable aviation technologies. The aviation sector is poised for a green revolution, and the UK is leading the charge. This bold move will not only reduce the environmental impact of air travel but also stimulate economic growth, create jobs, and position the UK as a leader in sustainable aviation. The coming months will be crucial as the consultation progresses and the bill is laid in Parliament, shaping the future of green aviation in the UK and beyond.
