To ask the Secretary of State for Transport, whether he plans to take steps to (a) establish a long-term price support mechanism for sustainable aviation fuels and (b) create a sustainable aviation fuel industry.
26 May 2021
The Government believes that sustainable aviation fuels (SAF) have a crucial role to play in reaching our goal of net zero by 2050. We already provide strong support to the sector through the Renewable Transport Fuel Obligation (RTFO) and our low carbon fuel industry competitions.
To further build on this existing support, as part of the Prime Minister's 10 Point Plan for a Green Industrial Revolution, the Government announced £15m for a new SAF industry competition, £3m to set up a SAF clearing house, and an intention to consult on a blending mandate to drive SAF uptake in the UK. This consultation is planned for the summer and will be complemented by supporting ambitions presented in the department’s upcoming Transport Decarbonisation Plan and Net Zero Aviation Consultation.
The Government will continue working with stakeholders through the Jet Zero Council SAF Delivery Group and other channels to explore what further policies might be needed to support the development of the sector, including demand-side measures or business models that address price risk.