The UK Government’s Department for Transport has launched a new consultation on establishing a “Revenue Certainty Mechanism” (RCM) to support Sustainable Aviation Fuel (SAF) producers. This initiative would be funded through a levy on jet fuel suppliers, aiming to provide long-term financial stability for SAF production.

As fuel is the primary source of aviation emissions, SAF—made from sustainable feedstocks like waste oils and agricultural residues—offers a significant decarbonization solution, with potential lifecycle GHG emission reductions of up to 85% compared to conventional fuels.

The consultation follows the UK’s SAF Mandate, introduced in January, which requires SAF to make up 2% of the jet fuel mix by 2025, scaling to 22% by 2040. However, SAF production faces major hurdles, including high upfront investment costs (estimated between £600 million and £2 billion for new commercial plants), limited supply, and higher prices relative to fossil-based fuels.

To overcome these challenges, the RCM would provide revenue certainty to de-risk investments. The government proposes funding this mechanism through a variable levy on jet fuel suppliers, applying the “polluter pays principle” to share costs across the supply chain, similar to models used for renewable electricity and hydrogen.

The consultation will remain open until the end of March, with the government planning to introduce a Sustainable Aviation Fuel (Revenue Support Mechanism) Bill in Parliament this Spring.

Stay ahead in sustainability compliance with Global PCCS —where expert insights meet the latest regulations. Unlock a future where compliance fuels sustainability, helping your business thrive in a greener, well-regulated world. For more information, contact us at info@globalpccs.com