Passengers are set to experience greener flights thanks to new support for the sustainable aviation fuel (SAF) industry, which will help reduce emissions, establish the UK as a clean energy leader, and accelerate the country’s expansion plans, according to the press release.
On 3 March 2025, the government published a consultation outlining how it intends to support the green fuels sector and provide clarity for SAF producers. This is the latest step in the government’s efforts to aid the aviation sector and boost economic growth.
The SAF industry is critical to the future of aviation, offering a sustainable alternative to traditional jet fuels. SAF can reduce greenhouse gas emissions by up to 70% compared to fossil fuels, playing a key role in the UK’s clean energy goals. It will also help support airport expansions in line with the country’s climate commitments.
Investing in the low-carbon sector has great potential for economic growth. It is expected to create up to 15,000 new jobs and contribute £5 billion to the UK economy by 2050.
Given that the SAF industry is still in its early stages, today’s proposals aim to address current uncertainties by introducing a price guarantee mechanism—known as the revenue certainty mechanism (RCM). This will ensure a steady income for producers even when SAF prices fluctuate, helping to keep costs down for airlines and passengers.
The proposals are designed to reduce risks, provide confidence for investors in UK SAF plants, and secure the supply needed to strengthen the industry. The mechanism also seeks to minimize costs, protecting holidaymakers and workers from significant price hikes, with any increases expected to align with typical variations in ticket prices.
The RCM complements the introduction of the SAF Mandate in January 2025, which requires an increasing percentage of aviation fuel to come from sustainable sources. This mandate, one of the first of its kind globally, will ensure strong demand for SAF, fostering production in the UK and further positioning the UK as a leader in decarbonizing air travel.
Together, the revenue certainty mechanism and the SAF Mandate will help achieve the UK’s net-zero goals, allowing the aviation sector to grow and supporting airport expansion. These initiatives are also expected to attract significant investment into the SAF sector, creating green jobs, driving innovation, and stimulating growth as part of the government’s Plan for Change.
Aviation Minister Mike Kane said, “We are committed to building the technology and fuel supply that will make greener flying a reality, while protecting consumers. These proposals will boost SAF production in the UK, support thousands of green jobs, and contribute to expansion plans.”
Tim Alderslade, Chief Executive of Airlines UK, expressed support for the RCM, emphasizing its importance for driving SAF production and enabling compliance with the mandate. He noted, “We look forward to collaborating with the government to design the mechanism, with a focus on fostering a competitive market and supporting first-of-a-kind (FOAK) plants. The goal is to produce SAF at the lowest possible cost for consumers, helping the industry achieve net-zero while supporting growth in UK aviation and minimizing impacts on passengers.”
Karen Dee, Chief Executive of Airports UK, said SAF is crucial for decarbonizing aviation, and the RCM will not only ensure the UK has a steady supply but also bring thousands of jobs and billions in investment. “Airports will work with the government to develop solutions that inspire confidence in the market, enabling the creation of a homegrown SAF industry that will help expand the UK’s global air connectivity sustainably.”
Gaynor Hartnell, Chief Executive of the Renewable Transport Fuel Association, stressed the importance of the RCM for ensuring SAF is produced in the UK rather than being imported. “Homegrown SAF leads to more jobs, enhances fuel security, and provides a better way to manage waste compared to burning it for electricity,” she said.
The consultation will run from 3 March to 31 March, and the Sustainable Aviation Fuel (Revenue Support Mechanism) Bill is expected to be laid in Parliament in the spring. This initiative builds on the £63 million recently announced by the Chancellor to boost the production of alternative fuels in the UK.
In addition, the Chancellor invited Heathrow Airport to submit its expansion plans for consideration by the summer. The government will then review the Airports National Policy Statement (ANPS) to ensure that any projects align with legal, environmental, and climate obligations.
Last September, the department announced a revitalized Jet Zero taskforce, which is driving efforts to transform air travel and align with the government’s missions to make the UK a clean energy superpower and boost economic growth.
In another step forward for sustainable aviation, the UK led the charge at the International Civil Aviation Organization (ICAO) to introduce new carbon limits for aircraft. These regulations will make new aircraft 10% more fuel-efficient by 2031, reducing emissions and fuel costs, benefiting passengers and the environment. Aircraft noise regulations will also be strengthened by 2029 to reduce noise during takeoff and landing.
The RCM will help stabilize the green fuels market, supporting SAF production necessary for decarbonizing aviation. The scheme, similar to those used in the UK’s renewable energy sector, will encourage investment in domestic SAF production, boosting the economy through green jobs.
This temporary measure will support early-stage technologies and create a competitive SAF market. The government will monitor its effects and manage potential liabilities by capping support to a pre-agreed SAF volume and setting strike prices within contracts.
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