The UK Department for Transport (DfT) has announced plans to introduce a Sustainable Aviation Fuel (SAF) mandate starting next year. This initiative is set to position the UK as a global leader in aviation decarbonization. 1a34p

Under the new mandate, which will commence on 1 January 2025, the UK will require that a percentage of jet fuel used by airlines be composed of SAF. The mandate will begin at 2% of total jet fuel demand and increase progressively to 10% by 2030 and 22% by 2040.

This policy is expected to significantly reduce greenhouse gas emissions from aviation, potentially cutting emissions by up to 6.3 million tons of CO2 equivalent by 2040. The mandate will also drive economic growth, estimated to contribute over £1.8 billion to the UK economy and create more than 10,000 jobs.

In addition to the SAF mandate, the DfT will introduce a revenue certainty mechanism to investment in SAF production facilities in the UK, ensuring a stable supply and fostering innovation in the sector.

SAF mandate

The mandate will encourage the innovation of advanced fuels that can generate greater emission reductions and the diversification of feedstocks to reduce dependencies on scarce resources, by including in the mandate:

• A cap on the feedstocks used in the hydroprocessed esters and fatty acids (HEFA) process, but not until other types of SAF are also commercially viable to recognise the important part that HEFA SAF will play in the 2020s. HEFA supply will not be limited under the mandate for the first 2 years, fall to 71% in 2030 and still contribute 35% in 2040.

• A separate obligation on power to liquid fuels from 2028 that reaches 3.5% of total jet fuel demand in 2040.

According to the UK government, the mandate will also include a buy-out mechanism for both the main and power to liquid obligations to incentivise supply while protecting consumers where suppliers are unable to secure a supply of SAF. These will be set at £4.70 and £5.00 per litre of fuel, respectively. These provide a significant incentive for fuel suppliers to supply SAF into the market rather than pay the buy-out. They also set a maximum price for the scheme, and therefore deliver emission reductions at an acceptable cost. The plan includes a review mechanism to help minimise the impact on ticket fares for engers.

We will also work closely across government on feedstock availability to ensure that feedstocks are used in a sustainable and productive way.