New sustainable aviation fuel measures will support aviation expansion in the UK and meet decarbonisation goals
The UK Government has implemented new measures today (14 May 2025) to help the UK become a world leader in sustainable aviation fuel (SAF), supporting industry growth and boosting jobs nationwide.
Sustainable aviation fuel is an alternative to fossil jet fuel, which reduces greenhouse gas emissions by 70% on average on a lifecycle basis. Sustainable fuel is more costly than jet fuel; however, the new measures will protect the industry and consumers from excessive costs.
£400,000 funding to speed up clean fuel production
Decarbonisation is an essential factor in accelerating expansion plans, and to get sustainable aviation fuel to the market quicker, the government has allocated an additional £400,000 in funding to help producers get the fuel on the market quicker. This funding will support testing and qualification of green fuels and follows £63m funding made available through the Advanced Fuels Fund this year.
Additionally, the revenue certainty mechanism (RCM) will keep ticket price changes minimal, keeping fluctuations to £1.50 a year on average. It will be industry-funded through a levy for aviation fuel suppliers. The Department for Transport (DfT) will continue to engage with the industry on the details of the RCM, including pricing.
This new commitment to sustainable aviation fuel will help fulfill the government’s mission to deliver economic growth through job creation, making it a clean energy superpower. It will allow the UK to go further and faster with expansion plans, boosting the tourism industry.
Aviation Minister Mike Kane said: “I want to see a golden age for green aviation, and today, we see take-offs for sustainable flights.
Aviation continues to be one of the fastest growing and most integral parts of the UK’s economy, offering more jobs across engineering, tourism and hospitality, and as we support aviation expansion, we need to move at full throttle towards decarbonisation.
We are making the UK one of the best places in the world to produce sustainable aviation fuel, putting the pedal down on growth and boosting job opportunities across the country as part of the Plan for Change.”
10% of all jet fuels must be made sustainably
The new measures will help the industry meet its requirements under the SAF Mandate, introduced in January this year, requiring at least 10% of all jet fuel used in UK flights from 2030 with sustainable fuel, rising to 22% by 2040.
The funding confirms the UK’s commitment to building a homegrown, sustainable fuel production hub. Low-carbon fuels could add up to £5bn to the economy by 2050 and position the UK as a global hub for sustainable aviation fuel production.
Tim Alderslade, Chief Executive of Airlines UK, said: “This is a welcome announcement given the importance of the RCM to commercialising and scaling up SAF production in the UK, a technology key to decarbonising aviation by 2050. A UK SAF industry, kick-started by the RCM and SAF Mandate, can create tens of thousands of jobs across the country whilst supporting our world-class aviation sector to deliver economic growth.
We look forward to working with government on scheme design and how contracts are allocated, so that we balance the need to deliver the SAF required to support mandate compliance, whilst keeping costs as low as possible through a competitive and transparent bidding process that places the consumer at its heart.”
Duncan McCourt, Chief Executive of Sustainable Aviation, said: “We hugely welcome the publication of this important legislation. SAF is a crucial element in the plan to decarbonise aviation as it can be used in existing aircraft with existing infrastructure.
The challenge now is to scale the industry, ensuring we have enough SAF to meet the mandate whilst keeping costs low and create thousands of jobs in the process. This legislation will help to do that.”
