The Department for Transport (DfT) has introduced new legislation in Parliament aimed at increasing sustainable aviation fuel (SAF) production in the UK.

The measures, announced today (14 May 2025) aim to provide revenue certainty for green fuel producers while supporting job creation across the country.

An additional £400,000 in funding has also been announced to help producers get new clean fuels to market more quickly, following £63 million already made available through the Advanced Fuels Fund this year.  

SAF reduces greenhouse gas emissions by approximately 70% compared to conventional jet fuel. Although the fuel is more expensive to produce, the government's new revenue certainty mechanism (RCM) aims to protect industry and consumers from excessive costs.

The RCM will minimise ticket price changes, keeping fluctuations to an average of £1.50 per year, funded through a levy on aviation fuel suppliers.

Aviation Minister Mike Kane said: "I want to see a golden age for green aviation and today sees take off for sustainable flights.

“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."

The legislation supports the SAF Mandate introduced in January, which requires at least 10% of all jet fuel used in UK departing flights to be sustainable by 2030, rising to 22% by 2040.

According to government projections, the approach to low carbon fuels could add up to £5 billion to the economy by 2050.

Tim Alderslade of Airlines UK welcomed the announcement, saying a UK SAF industry "can create tens of thousands of jobs across the country whilst supporting our world-class aviation sector to deliver economic growth."

Duncan McCourt from Sustainable Aviation added: "SAF is a crucial element in the plan to decarbonise aviation as it can be used in existing aircraft with existing infrastructure."