Source · Select Committees · Environmental Audit Committee
Recommendation 24
24
Paragraph: 159
Free ETS allocations for aviation ending, SAF pricing needs to reflect carbon impact.
Conclusion
We welcome the decision of the UK Government and devolved administrations to end the issuing of free ETS allocations to aviation with effect from the 2026–2030 allocation period. We note that the use of SAF in aviation is currently zero-rated for ETS, even though the emissions from burning SAF in flight are currently equivalent to those from burning aviation kerosene: as the SAF market matures, consideration must be given to pricing SAF in the ETS at a level which genuinely reflects its carbon impact.
Paragraph Reference:
159
Government Response
A response document is linked to this report, dated 3 April 2024. Response attribution to this conclusion has not been verified. Read the response document ↗