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Sustainable Aviation Fuel Revenue Certainty Mechanism

28 April 2025

Proposing MP
Heidi Alexander Lab
Swindon South
Type
Written Ministerial Statement
Department
Department for Transport
View on Parliament.uk -->

At a Glance

Issue Summary

The statement discusses the UK government's commitment to supporting Sustainable Aviation Fuel (SAF) through legislative measures and funding.

Action Requested

The government has reiterated its commitment to the SAF Mandate, signed it into law in November, and announced an additional £63 million for the Advanced Fuels Fund. It is introducing a Revenue Certainty Mechanism Bill by the end of 2026 to attract investment in UK SAF production.

Key Facts

  • The SAF Mandate aims to secure demand for SAF with a legal obligation on fuel suppliers, starting at 2% in 2025 and increasing linearly to 10% in 2030 and 22% in 2040.
  • Up to 6.3 million tonnes of carbon savings per year could be achieved by 2040 through the SAF Mandate.
  • An additional £63m was announced for the Advanced Fuels Fund, extending it for another year.
  • The Revenue Certainty Mechanism involves private law contracts with government-backed counterparties to set strike prices for SAF, addressing investment constraints and attracting investors.
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