The UK aviation sector is set for a major transformation after the government announced a £43 million investment in green aviation projects aimed at cutting emissions, creating skilled jobs and unlocking private-sector growth.
Funding Cleaner Technology and Skilled Jobs
The funding, revealed on 20 January 2026, comes as ministers push ahead with airport expansion plans while committing to cleaner, more sustainable air travel.
The investment is expected to stimulate millions of pounds in private funding and play a key role in meeting the UK’s net zero aviation target by 2050.
The £43 million package will support research and development projects focused on low-carbon fuels, zero-emission aircraft and other emerging aviation technologies. Businesses, universities and research institutions across the UK will be invited to bid for funding, with competitions opening from February.
Low-carbon fuel production alone is projected to add up to £5 billion to the UK economy by 2050, while supporting high-skilled roles in engineering, science and technology. The government says the funding will help ensure that growth in aviation is aligned with climate goals rather than constrained by them.
Transport Secretary Heidi Alexander said the investment would “power up green aviation” by backing innovation that reduces emissions while strengthening the UK economy and improving global connectivity.
Hydrogen, SAF and Contrail Reduction
A significant focus of the funding will be on hydrogen-powered flight, with the Civil Aviation Authority developing the regulatory framework needed for its widespread use. Universities and pioneering companies working on hydrogen technology are expected to benefit directly from this support.
The funding may also be used to trial ways to reduce contrails, the condensation trails formed by aircraft exhaust that can contribute to global warming. Researchers will explore how flight paths or fuel choices could minimise their climate impact.
In addition, part of the funding will support the use and tracking of sustainable aviation fuels (SAF) in regions such as Africa and the Caribbean, helping airlines participate fairly in global carbon offset schemes.
Long-Term Support for Sustainable Growth
The announcement builds on wider government backing for green aviation, including the Sustainable Aviation Fuel Bill, due to come into force later this year. The bill will guarantee a set price for UK SAF producers, providing long-term certainty for investors.
This is complemented by £63 million for new SAF production plants and £2.3 billion through the Aerospace Technology Institute programme over the next decade.
Industry leaders have welcomed the move, calling it a vital step towards delivering carbon-neutral skies while keeping the UK at the forefront of aviation innovation.
Do you think green aviation technology can make flying truly sustainable, or should demand for flights be reduced? Share your views in the comments below.
