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Aviation: Fuels

Question for Treasury

UIN 3567, tabled on 17 May 2022

To ask the Chancellor of the Exchequer, if he will make an assessment of the sustainability of finance from the UK-ETS to be used to support the development of the UK Sustainable aviation fuel industry.

Answered on

24 May 2022

Carbon pricing will play a key role in helping the UK achieve Net Zero. The UK launched our own Emissions Trading Scheme (ETS) at the beginning of 2021, covering the power, industrial and aviation sectors. It raises funds to be invested across the Government’s spending priorities, including our public services as well as our Net Zero ambitions. The UK ETS Authority is currently consulting on developing the UK ETS, including aligning the total cap on emissions with net zero.

The Government is also supporting Sustainable Aviation Fuel (SAF), although these are not ringfenced funds from the ETS. At the Spending Review, the Government committed £180m to accelerate the commercialisation of Sustainable Aviation Fuel (SAF) plants and to set up a UK clearing house for SAF. The Government also extended its long-term commitment to the aerospace sector, guaranteeing funding for the Aerospace Technology Institute (ATI) to 2031, co-investing with industry in world-class research and development. The ATI will receive a record £685m of funding over the next 3 years, an increase of more than 50%. This activity will help drive the development of zero-emission flight technology, which is an important part of our Jet Zero ambitions to decarbonise aviation.

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