Aviation: Alternative Fuels
The question
To ask the Secretary of State for Transport, what the scale of the revenue certainty mechanism will be; and how market pricing will be achieved.
Answered by Mike Kane
The SAF Bill was introduced on Wednesday 14th May in the House of Commons, with legislative measures to implement an industry-funded revenue certainty mechanism to support SAF production in the UK.
The Bill confirms the government’s position that any funding required should come from a levy on aviation fuel suppliers.
Further work is required to design the allocation process for the revenue certainty mechanism. This will include greater detail regarding the size and timings of the contracts, as well as parameters around pricing. We will maintain a close and ongoing dialogue with industry on options for achieving cost control within the revenue certainty mechanism.
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