The UK government has launched a consultation aimed at ensuring stability in sustainable aviation fuel (SAF) production. This initiative seeks to reduce emissions, provide financial certainty for producers, and position the UK as a global leader in decarbonising air travel. With a revenue guarantee mechanism and a SAF mandate, the move is expected to create 15,000 jobs and contribute £5 billion to the economy by 2050. 6q583x

New measures to drive SAF investment and cut carbon emissions 4b2w6x

On 3 March 2025, the government published a consultation detailing its for the green fuels sector, outlining plans to provide certainty for SAF producers. This aligns with the UK’s commitment to backing airport expansion while adhering to climate goals.

Recognising the nascent nature of the industry, the government is proposing a revenue certainty mechanism (RCM) to stabilise income for producers. The RCM will mitigate risks associated with fluctuating SAF prices, encouraging investment in UK SAF plants. This initiative is designed to maintain stable fuel costs for airlines and engers while ensuring a reliable supply of SAF to the aviation sector.

for SAF industry to secure the UK’s green future 5y3618

In addition to the revenue guarantee, the government will introduce the SAF Mandate in January 2025, requiring an increasing percentage of aviation fuel to come from sustainable sources. This mandate, one of the first globally to be legally enforced, will drive demand and production within the UK.

The combined impact of the RCM and the SAF Mandate is expected to propel the aviation sector towards net-zero emissions while ing economic growth and innovation. Aviation Minister Mike Kane stated:

“We are committed to building the technology and fuel supply that will see greener flying become a reality in a way that protects consumers. These proposals will power up SAF production in the UK, thousands of green jobs, and bolster expansion plans.”

The consultation has received widespread from key industry figures. Tim Alderslade, Chief Executive of Airlines UK, welcomed the RCM, highlighting its potential to drive SAF production and ensure compliance with the mandate:

“We look forward to working with the government on its design, with a focus on fostering a competitive market and ing first-of-a-kind (FOAK) plants.”

A step towards a cleaner, more competitive aviation sector 4c534c

The consultation, running from 3 March to 31 March, will inform the development of the Sustainable Aviation Fuel (Revenue Mechanism) Bill, which is set to be introduced in Parliament this spring. This initiative follows the Chancellor’s recent announcement of £63 million in funding to boost alternative fuel production.

Further reinforcing its commitment to sustainable aviation, the UK has led efforts at the International Civil Aviation Organization (ICAO) to impose new carbon limits on aircraft. From 2031, all new aircraft types must be 10% more efficient, reducing emissions and fuel costs. Additionally, aircraft noise regulations will be strengthened from 2029 to make take-offs and landings quieter.

By implementing the RCM, the UK government is creating a stable green fuels market, securing domestic SAF production, and fostering long-term investment. The measure aims to scale early technologies while ensuring a competitive SAF market. The government will monitor the scheme’s impact, setting limits on volumes and determining fair pricing to manage liabilities.