The sustainable aviation fuel (SAF) bill will be moved on Thursday, Nov. 20 by the members of the House of Lords. The aim of the bill is to utilise strategies to meet the supply demand with SAF mandate of 2% blending in 2025 to 22% by 2040. Therefore, the mandate creates demand for SAF but the struggle for supply continues.
Proposed strategies to meet the mandate
On Jan. 1, 2025, the government imposed a SAF mandate on the aviation industry to blend a minimum and increasing percentage of SAF into the total fuel mix for flights departing the UK. The rise is targeted from 2% in 2025 to 22% in 2040.
To meet these targets and support the commercial production of SAF in the UK, the Sustainable Aviation Fuel Bill was introduced on May 14, 2025 in the House of Commons.
One of the main targets of the bill is to introduce a Revenue Certainty Mechanism. The Secretary of State may instruct a government-owned counterparty to enter contracts with SAF producers while reducing investment risks. A fixed “strike price” for SAF will be guaranteed over a defined period.
- If the market price falls below the strike price, the counterparty pays the producer the difference.
- If the market price exceeds the strike price, the producer pays the counterparty the surplus.
Such resolutions will ensure that the mechanism mirrors the UK’s Contracts for Difference (CfD) scheme used in low-carbon electricity and hydrogen. It will also aim to lower financing costs, boost investor confidence, and accelerate final investment decisions for SAF plants.
The bill also specifies the counterparty which must be a company wholly owned by the government. This is to ensure responsibility for issuing and managing contracts with SAF producers, handling payments under the strike price mechanism, and administering the overall scheme.
Were certain targets missed?
During the Report stage of the bill, on Oct. 15, 2025, Olly Glover, Liberal Democrat Spokesperson (Transport), introduced new clauses and at the same time highlighted a few missed targets,
In 2010, Boeing announced the target that 1% of aviation fuel globally should come from SAF by 2015, and in 2019, the International Air Transport Association set out hopes of reaching 2% by 2025, but today, globally, the figure is just 0.3%.
He observes the continued talks of using SAF over the years yet notices a poor track record of unambitious targets. He says,
The Conservative Government promised back in 2022 to have five commercial UK SAF plants operational by 2025, but there is still only one. It is therefore right of the Government to have introduced legislation to make sure that the latest set of SAF targets move from fantasy to realistic, credible and deliverable plans.
Members of the House of Lords will discuss the main objectives of the Sustainable Aviation Fuel Bill on Thursday 20 November. The debate will be opened by Lord Hendy of Richmond Hill (Labour), Minister of State at the Department for Transport and respond on behalf of the government. What are your thoughts on the current debate and strategies for achieving the SAF mandate of 22% by 2040? Let us know in the comments below.
