UK – Sustainable aviation fuel revenue certainty mechanism: approach to industry funding
This government is committed to delivering greener transport and securing the aviation industry’s long-term future. Decarbonising aviation will play an important role in the growth of the sector with opportunities created for new industries and more jobs. The UK sustainable aviation fuel (SAF) industry will play a vital role in supporting both the decarbonisation and growth of the sector.
The revenue certainty mechanism will help producers get the investment they need to ramp up the production of SAF in the UK. A UK SAF industry will support the delivery of emissions reductions through the SAF Mandate, help drive growth and can provide good green jobs across the whole of the UK.
This consultation focuses on how the revenue certainty mechanism will be funded.
It outlines our position that the revenue certainty mechanism should be funded by industry and that the preferred approach is to introduce a levy on suppliers of jet fuel. The government is fully committed to working with industry on the design of the revenue certainty mechanism including on how any levy will work in practice.
This consultation builds on the government response to the April 2024 consultation and the announcement of the SAF Revenue Support Mechanism Bill in the King’s Speech.
It takes another step toward achieving the revenue certainty mechanism and demonstrates the government’s commitment to aviation decarbonisation. This is alongside wider policy measures including:
- the SAF Mandate
- work on airspace modernisation
- the recent announcement of a £63 million extension to the Advanced Fuels Fund
The revenue certainty mechanism will help build a UK SAF industry. This represents a significant economic opportunity for the UK which will help make Britain a clean energy superpower.
Mike Kane MP, Minister for Aviation, Maritime and Security
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