Transport

In a statement to the House of Commons, the minister outlined the government's plans to introduce a Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024. The minister began by paying tribute to a former constituent, Ken Eastham, who had served the people of Blackley and Broughton in the House from 1979 to 1997. The minister then highlighted the importance of sustainable aviation fuel (SAF) as a means of decarbonizing the aviation industry, noting that the greenhouse gas emissions associated with the use of SAF are 70% less than those from fossil jet fuel on a life-cycle basis. The government recognizes the urgency of the global climate challenge and sees the development of these technologies as a core part of its mission to make the UK a clean energy superpower. The minister explained that the SAF mandate has been developed over several years, with two formal consultations and significant stakeholder engagement. The mandate will support the decarbonization of the aviation industry by creating demand for SAF in the UK. The government is also providing support through initiatives such as the advanced fuel fund, which is currently supporting 13 UK plants with £135 million of grant funding, and the introduction of a revenue support certainty mechanism Bill to incentivize investment in UK SAF production. The minister highlighted the potential economic benefits of developing a domestic SAF industry, estimating that it could generate up to 60,000 new jobs by 2050 and add up to £10 billion in gross value added per annum. The introduction of the SAF mandate is seen as an important step forward in the decarbonization of the aviation sector, providing a long-term incentive for SAF use in the UK and a clear signal to investors to develop SAF production facilities and more advanced SAF technologies. The minister outlined the details of the SAF mandate, which will require 2% of jet fuel to be made from sustainable sources in 2025, 10% in 2030, and 22% in 2040. The mandate will also include a cap on fuels derived from segregated oils and fats, known as hydroprocessed esters and fatty acids (HEFA), to create space for more advanced fuels. Additionally, a specific obligation on suppliers to supply power-to-liquid fuels will be introduced to accelerate the development of these advanced fuels. The minister emphasized the strict sustainability criteria that will be applied to eligible SAF, including that it must be derived from residual waste or residue, recycled carbon, low-carbon hydrogen, or power-to-liquid fuels. Fuel suppliers will be able to meet their SAF mandate obligation through the supply of SAF, the purchase of certificates from others, or the payment of a buy-out price. The minister concluded by highlighting the government's recognition of the importance of the aviation sector for achieving economic growth and delivering for communities, and the SAF mandate as a key part of the government's ambitious and pragmatic approach to decarbonizing transport and promoting economic growth, ensuring that the UK continues to lead the way on SAF globally.