Source · Select Committees · Environmental Audit Committee
Recommendation 19
19
Deferred
Paragraph: 115
Implement a price support mechanism to incentivise investment in SAF production pathways.
Recommendation
The Government must match its ambition for the development of a domestic SAF industry with an appropriate appetite for risk and innovation in order to ensure that commercial production of truly sustainable fuels develops at pace. The introduction of a revenue certainty mechanism, via provision in the Energy Act 2023, represents a welcome initial step in this process. To this end, we recommend that the Government make swift progress on the implementation of a price support mechanism to incentivise investment for SAF production pathways.
Government response summary AI-generated
The government notes the recommendation, referring to prior commitments to introduce a revenue certainty mechanism, with a delivery plan by the end of 2026. It will publish a consultation on options for designing and implementing the mechanism within six months of the Energy Act 2023 Royal Assent.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
115
Government Response
Deferred
HM Government · verbatim extract
Deferred
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. Recommendation 10: Recommend that the Government establish a target under the Jet Zero Strategy for the full roll-out of zero-emission aircraft on a minimum number of routes essential to UK connectivity by 2040, with a view to encouraging the greater take-up of ZEF aircraft on commercially-operated short haul routes within the UK.
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