The UK government has recently reaffirmed its commitment to sustainable aviation with the announcement of new targets on April 25, 2024. These targets aim to ensure that by 2030, 10% of all jet fuel used in flights departing from the UK originates from sustainable sources, marking a significant step towards a greener future in the aviation sector.
At the forefront of this initiative is the UK government’s Sustainable Aviation Fuel (SAF) mandate, which will come into force by January 2025. Subject to Parliamentary approval, the mandate will be one of the first in the world to be put into law. Leading the way in decarbonising air travel.
This announcement comes 5 months after the launch of the world’s first commercial 100% SAF transatlantic flight, in November 2023, from Heathrow Airport. The pioneering move was supported by £1 million in government investments, as they strive for a cleaner, greener aviation sector.
Economic Impact
Job creation is essential across all sectors within the UK. The latest initiative is poised to inject more than £1.8 billion into the economy and generate 10,000 new jobs. By mandating the use of Sustainable Aviation Fuels, the government ensures a steady demand for sustainable fuels, leading to significant emissions reductions and bolstering investor confidence.
Introducing a revenue certainty mechanism serves as an additional incentive for investments in UK SAF production. This, in turn, not only fosters growth nationwide but also boosts the supply of British-made fuel, reinforcing the UK’s position as a dominant global leader in sustainable aviation.
SAF Mandate
The mandate is projected to achieve emission reductions of 2.7 MtCO2e by 2030 and 6.3 MtCO2e by 2024. With the aim of a more sustainable future, sustainable aviation fuel will generate approximately 70% fewer carbon emissions than conventional fossil fuels. What makes sustainable aviation fuel so interesting is that it is derived from waste materials or by-products such as household waste, industrial gases, or used cooking oil.
Discussions regarding introducing Sustainable Aviation Fuel began in July 2022, with the government confirming its implementation in 2025. The mandate will prioritise ensuring that fuels yield tangible benefits and establish sub-targets to incentivise the adoption of various sustainable aviation fuel production pathways.
Mark Harper, Transport Secretary, said:
“Sustainable aviation fuel protects the future of UK aviation, the thousands of British jobs that depend on it, and the holidays and business travel flights that we all rely on.
As part of our plan to grow the economy, the measures announced today will give both UK aviation and the UK SAF industry the certainty they need to keep creating skilled British jobs while giving passengers the freedom to continue travelling by air in a way that’s fit for the future.”
As sustainability gains increasing prominence, there is a growing emphasis on encouraging sectors across industries to prioritise renewable practices. In a significant development, October 2023 saw The Abu Dhabi National Oil Company receiving the International Sustainability Carbon Certification (ISCC) to produce Sustainable Aviation Fuel.
Long-Term Visions
While acknowledging that Sustainable Aviation Fuel may entail higher costs than traditional jet fuel, the government is committed to ensuring that decarbonisation efforts do not burden consumers. A review mechanism has been incorporated into the plan to manage prices effectively and mitigate the impact on ticket fares for passengers. Additionally, the government has the authority to adjust key limits within the mandate to prevent significant price escalations in the unlikely event of SAF shortages.
The announcement has garnered widespread acclaim from industry stakeholders, with support from airlines, airports, and producers. Karen Dee, Chief Executive of the Airport Operators Association, hailed the proposals as integral to the decarbonisation of air travel and emphasised their potential to spur job creation and economic growth while enhancing energy independence.
As the UK progresses towards its net-zero targets, these measures signify substantial progress towards carbon reduction goals, balancing environmental responsibility with economic viability. With a steadfast commitment to sustainable aviation, the UK is poised to lead the global transition towards a greener, more resilient aviation industry.
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