The UK Government has unveiled an ambitious Sustainable Aviation Fuel (SAF) mandate, poised to slash emissions and spur job growth. Commencing at 2% in 2025, it will surge to 22% by 2040, anchoring feedstock limits to propel innovation. Encompassing buy-out options and protective measures, it safeguards supply while mitigating potential spikes in airfare. The strategy sidesteps flight rationing, ensuring ticket prices remain within reach through price management and SAF scarcity remedies.
By Shreya M
The government states the mandate ‘will drive demand for SAF in the UK, secure emission reductions and provide investor confidence.’
The government plans to introduce secondary legislation during the forthcoming summer, with the initiative slated to commence on January 1, 2025. Originally proposed by the UK government in July 2022, the SAF mandate confirmed its enforcement from 2025 onward. The initial proposal articulated a goal for at least 10% of UK aviation fuel to be sustainably sourced by 2030, encompassing stringent sustainability criteria to ensure authentic environmental benefits from the fuels, alongside sub-targets designed to incentivize diverse SAF production methodologies. The Sustainable Aviation Fuel (SAF) mandate is projected to yield emissions reductions of 2.7 MtCO2e by 2030 and 6.3 MtCO2e by 2040, concurrently fostering significant employment opportunities, particularly within advanced fuel production sectors.
In March 2023, a second consultation focused on refining the details, policies, and framework of the SAF mandate. Beginning in 2025, the mandate starts at 2% coverage of UK jet fuel demand, rising linearly to 10% by 2030 and 22% by 2040. After 2040, it remains fixed at 22% until sustainable aviation fuel availability is certain. The mandate includes a cap on HEFA feedstocks, the main SAF source, but stresses the need for advanced fuels with less reliance on these resources. HEFA supply won't be restricted initially but will gradually decrease to 71% by 2030 and 33% by 2040, encouraging innovation in new SAF technologies.
The UK Government's SAF mandate includes buy-out mechanisms to incentivize supply, set at £4.70 and £5.00 per litre for main and power-to-liquid obligations, respectively, aiming to drive innovation while preventing flight rationing. if enough SAF is accessible, any airfare rises due to SAF will stay within typical yearly price variations, with government measures ready to prevent significant spikes.
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