Source · Select Committees · Environmental Audit Committee
Recommendation 9
9
Accepted
Paragraph: 77
Achieving 0.5% annual aircraft fuel efficiency gains demands significant R&D and industry incentives.
Conclusion
We agree with the Climate Change Committee that the 0.5% year-on-year improvement in fuel efficiency from the aircraft fleet requires considerable effort both in research and development activity and in incentivising the industry to renew existing aircraft fleets.
Government Response Summary
The government notes the recommendation and has committed to introducing an industry-funded revenue certainty mechanism to support Sustainable Aviation Fuel production by the end of 2026, with a consultation on design options to be published within six months of the Energy Act 2023 receiving Royal Assent.
Paragraph Reference:
77
Government Response
Accepted
HM Government
Accepted
The Government notes this recommendation. In September last year, the government committed to introduce a revenue certainty mechanism to support SAF production in the UK. The intention is that it will be industry funded. Alongside this written ministerial statement, the government published a delivery plan outlining the timeline for how such a mechanism could be delivered by the end of 2026. In parallel, the government included a provision in the Energy Act 2023 that commits to publishing a consultation on the options for designing and implementing a revenue certainty mechanism within six months of the receiving Royal Assent, which happened on 26 October 2023. A range of factors and revenue certainty options will need to be carefully considered as part of the consultation, including interactions with the SAF mandate, deliverability, and affordability (cost impacts), whether the options make SAF plant projects in the UK investible, and potential unintended consequences. The government will continue to work with industry through the Jet Zero Council to develop a revenue certainty mechanism. We recognise that a UK SAF industry would bring many benefits from green jobs, skills, energy security and investment in the UK.