• SAF mandate starting in 2025, increasing to 22% by 2040.
• Estimated £1.8 billion economic boost and 10,000 new jobs.
• Emission reductions up to 6.3 MtCO2e by 2040.

The UK is taking a significant step toward sustainable air travel by introducing a mandate for sustainable aviation fuel (SAF). From January 1, 2025, the SAF mandate will require 2% of all UK jet fuel to be sustainable, with targets set to increase to 10% by 2030 and 22% by 2040.

Economic and Environmental Benefits

The move is anticipated to boost the economy by over £1.8 billion and create more than 10,000 jobs nationwide. Environmentally, the sustainable aviation fuel mandate is projected to reduce emissions by up to 2.7 MtCO2e in 2030 and 6.3 MtCO2e in 2040.

Innovative SAF Mandate Structure

The SAF mandate includes provisions to promote the innovation of advanced fuels and diversification of feedstocks. It places a cap on hydroprocessed esters and fatty acids (HEFA) feedstocks, with HEFA supply remaining unlimited for the first two years, reducing to 71% in 2030 and 35% in 2040. Additionally, a separate obligation for power to liquid fuels will start in 2028, reaching 3.5% by 2040.

Investor Confidence and Revenue Certainty

The bill announced on July 17 introduces a revenue certainty mechanism (RCM) for sustainable aviation fuel producers, providing the confidence needed for investments in new plants across the UK. This initiative supports the SAF mandate by reducing investment risks, thereby ensuring a steady supply of SAF for UK airlines and bolstering energy security.

Government’s Commitment

These initiatives are part of the government’s broader mission to spur economic growth and establish the UK as a clean energy leader. “Developing, using, and producing SAF will help drive our missions to kickstart economic growth and make Britain a clean energy superpower,” a government spokesperson stated.

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Global Leadership

The UK will be among the first countries to legislate such a mandate, setting a precedent for sustainable aviation practices worldwide. The sustainable aviation fuel mandate also includes a buy-out mechanism to protect consumers and incentivize suppliers, setting buy-out prices at £4.70 and £5.00 per litre of fuel for the main and power to liquid obligations, respectively.

By ensuring sustainable feedstock use and promoting SAF production, the UK aims to secure the long-term future of its aviation industry while making significant strides in reducing carbon emissions and enhancing economic growth.