Source · Select Committees · Environmental Audit Committee
Recommendation 25
25
Accepted
Paragraph: 160
Implement UK ETS changes to remove conventional aviation fuel from free allocations.
Recommendation
We recommend that the Government implement its proposed changes to the UK ETS so as to remove conventional aviation fuel from free allocations, and that it consult on a methodology to include SAF in the ETS in a way which does not inhibit the development and use of SAF in UK aviation.
Government Response Summary
The government agrees with the recommendation, confirming the phase-out of free aviation fuel allocations by 2026 and committing to developing and consulting on proposals for how to treat Sustainable Aviation Fuel (SAF) within the UK ETS.
Paragraph Reference:
160
Government Response
Accepted
HM Government
Accepted
The Government agrees with this recommendation. We are committed to enhancing the effectiveness of the UK ETS for aviation; and we will take forward the commitments in the Developing the UK ETS government response, which was published on 3 July 2023. The decision to phase-out aviation free allocation by 2026 is implemented by not extending existing free allocation arrangements for the aviation sector into the UK ETS’s 2026–2030 allocation period. Furthermore, during the current phase-out period there is a cap on the maximum amount of free allocation aircraft operators are eligible to receive per year. Regarding SAF, we will continue to develop proposals on how the UK ETS should treat the use of SAF by aircraft operators and will consult on these in due course. While SAF will continue to be zero rated under the UK ETS in the short-term, the UK ETS Authority will continue to explore alternative options to SAF being zero rated in the future. Proposals will take into account other SAF policy and incentives, as well Government’s wider objectives to support the development and use of SAF in the UK as set out in the Jet Zero Strategy.