The UK government has unveiled a revenue certainty scheme as part of its world-leading sustainable aviation fuel (SAF) programme, poised to create new job opportunities and drive economic growth. The scheme, tabled as part of the Energy Bill, aims to launch a consultation on designing and implementing the mechanism, which will positively contribute to the government’s ambitious commitment of having at least 5 commercial SAF plants under construction in the UK by 2025.
The Department for Transport (DfT) has committed to introducing a revenue certainty mechanism to support sustainable aviation fuel (SAF) production in the UK, providing producers with greater assurance about earnings from the SAF they produce. This move is expected to bolster the development of SAF and drive further investment, ultimately creating over 10,000 jobs by 2030, rising to 60,000 by 2050.
Aviation and Maritime Minister Baroness Vere emphasized the significance of sustainable aviation fuel in bringing economic opportunities and creating green jobs, stating that the revenue certainty scheme will enable the industry to harness its full potential and transition away from fossil fuel reliance. The government’s commitment to developing new low or zero emission technology is crucial in achieving a greener aviation sector, with the £165 million Advanced Fuel Fund already providing investors with reassurance in UK SAF.
The publication of a delivery plan for the revenue certainty mechanism by the end of 2026 builds on the work of the Jet Zero Council to support the aviation industry’s decarbonization efforts. Industry stakeholders, including the Renewable Transport Fuel Association and the Jet Zero Council SAF Delivery Group, have welcomed the commitment to a revenue certainty scheme, emphasizing the importance of securing investment to create a UK SAF industry and meet net zero targets.
The consultation process is expected to move forward quickly, with the aim of implementing measures at the earliest opportunity to meet the target of 5 UK SAF plants in construction by 2025. The introduction of a revenue certainty scheme and the SAF mandate in 2025 will provide fuel security, drive economic growth, and support the development of SAF, ultimately paving the way for cleaner and greener aviation in the UK.
Read more: https://www.gov.uk/government/news/new-measures-to-support-sustainable-aviation-fuel-industry
