The UK government has confirmed a new target for the use of sustainable aviation fuel (SAF), with all flights taking off from the UK to use 10% SAF by 2030. If granted parliamentary approval, the Sustainable Aviation Fuel Mandate will come into force from January 2025.
“As part of our plan to grow the economy, the measures announced today will give both UK aviation and the UK SAF industry the certainty they need to keep creating skilled British jobs while giving passengers the freedom to continue travelling by air in a way that’s fit for the future,” explained transport secretary Mark Harper.
The plan also included a review mechanism to help manage prices and minimise the impact on ticket fares, with the government able to change key limits within the mandate to block higher price rises in the event of SAF shortages. Additionally, a new government consultation will investigate a range of options for a ‘SAF revenue certainty scheme,’ looking to guarantee revenue from SAF, which includes a preferred option of a Guaranteed Strike price.
“The mandate, in combination with guaranteed pricing, will see the UK start to produce SAF within the next couple of years,” explained Gaynor Hartnell, chief executive of the renewable transport fuel association. “The UK policy aims specifically to encourage SAF made from wastes, which presents an opportunity for innovation and ultimately the export of technology and expertise”.
Norton Rose Fulbright partner Andrew Williams commented: “The government is clearly attempting to strike a careful balance between reducing emissions, in line with its Jet Zero strategy, and mitigating inflation in air ticket prices if the aviation industry is primarily expected to foot the bill for the increased costs of SAF production,” adding that it was a “fine line to tread”. He concluded that “the extent to which the government adequately supports the aviation industry through this transition and protects its long-term viability will be key to the new mandate’s eventual success”.
UK 10% SAF mandate by 2030
