The Government has today confirmed its long-awaited plans for a new sustainable aviation fuel (SAF) duty. This will require all aircraft taking off from the UK to ensure that 10 per cent of their fuel comes from certified sustainable sources by 2030.
The target, which requires parliamentary approval, is expected to come into force in January next year and will pave the way for a significant increase in SAF production capacity in the UK.
This target would see approximately 1.2 million tonnes of SAF delivered to the UK aviation industry each year, enough to fly around the globe 3,000 times.
SAF is an aviation fuel made from a variety of waste and organic raw materials and is already used in relatively small quantities by many major airlines. Proponents of the technology say it can reduce lifecycle emissions by about 70 percent compared to traditional jet fuel, helping the airline industry meet its goal of achieving net-zero emissions by 2050. argue that it may play an important role in
But critics have questioned whether all SAFs will be able to achieve the promised emissions reductions, with sufficient sustainable raw materials for the sector to play a key role in decarbonizing the aviation sector. There remains skepticism as to whether this will be possible.
However, the Government has made SAF a central element of its Zero Jet Strategy, confirming new targets for 2030 and today launching a consultation on how to increase investment in SAF production plants.
The consultation sets out a range of options for the SAF Revenue Certainty Scheme, which aims to guarantee returns from SAF and give new and existing producers and investors the confidence to continue investing in the industry. . This includes a Guaranteed Exercise Price (GSP) preferred option that guarantees a pre-agreed price for SAF supplied to the UK market, with the producer receiving a fixed price for his SAF manufactured. Aims to provide confidence.
Although the cost of SAF is currently significantly higher than traditional jet fuel, proponents of the technology argue that economies of scale can reduce costs over time.
The government said the sector could add more than £1.8 billion to the economy and create more than 10,000 jobs across the country. We are also working on a review mechanism to control SAF prices and minimize the impact on passenger ticket fares. “The government also has the power to change key restrictions within its powers to prevent price gouging in the event of a SAF shortage, with minimal impact on consumers.”
Transport Secretary Mark Harper said the SAF would “protect the future of British aviation, the thousands of British jobs that depend on it and the holiday and business flights we all depend on”.
“As part of our economic growth plan, the measures announced today will give both the UK aviation industry and the UK SAF industry the certainty they need to continue creating skilled jobs in the UK, while ensuring that passengers “It will give us the freedom to continue air travel in the right way for the future,” he added.
The new targets and consultations were widely welcomed by the aviation industry. Karen Dee, CEO of the Airport Operators Association, said: “Sustainable aviation fuels are a key part of the decarbonisation of air travel and the domestic SAF industry will create jobs and wealth, helping the UK We are pleased about this, as it will contribute to ensuring energy independence for the rest of the world.” The Government has put forward proposals for a duty and return certainty scheme to send a message to investors that the UK is serious about developing its own production facilities. ”
Her comments were echoed by British Airways chief executive Tim Alderslade, who said the British airline saw the SAF mission as “an important step towards net zero transition”. But he added: “It is vital that governments put in place appropriate measures now to encourage production and reduce the cost of SAF, as we have seen in the EU and the US. “The UK would be in a 'worst situation',” he added. Consumers are at a competitive disadvantage because they risk higher freight costs. ”
Gaynor Hartnell, CEO of the Renewable Transport Fuels Association, said the policy should be a major boost to the green fuels sector. He said: “The combination of this obligation and the guaranteed price will see the UK begin producing SAFs within the next few years.” “There are many ways to manufacture SAF, and each has an important role to play. Many of the plants our members build are groundbreaking, with unparalleled equipment and UK policy is specifically aimed at encouraging the production of SAF.'' Recovery from waste presents an opportunity for innovation and, ultimately, for the export of technology and expertise. ”
However, Kate Hewitt, director of policy at the Aviation Environment Federation, questioned the effectiveness of many of the currently available SAFs. “Ministers and the aviation industry both want to make the case that alternative fuels are a big solution to combating aviation emissions,” she said. “But the truth is that these fuels are in limited supply and most of them are produced using waste. It doesn't even reduce CO2. Just take it out and put it back in.'' So it's not really sustainable.
“If this obligation means that the government has finally acknowledged that the aviation emissions problem cannot be solved without some policy action, then that is probably a step in the right direction. But if we really need For the time being, the best way to reduce aviation emissions is to mandate a percentage of the alternatives, as fuel cannot guarantee that in an industry seeking growth. It's about reducing the number of flights.”
He also questioned who would pay for the proposed revenue certainty mechanism, saying: “Importantly, it is the airlines, not the public, who will pay for the fuel and technology that will help reduce emissions. ' he claimed.
“With no tax on aircraft fuel and no real emissions tax on flights outside Europe, it's time to make polluters pay,” she added.
The government remains fiercely resistant to calls for policies that could curb flight numbers, and today a new SAF mission has been announced: “Demand management'' “This is part of our approach.”
You can now sign up to take part in the 5th Net Zero Festival, hosted by BusinessGreen at London's Business Design Center on 22-23 October.
