Sustainable Aviation Fuel Bill

Baggy Shanker Excerpts

Report stage
Wednesday 15th October 2025 Commons Chamber

[John Cooper (Dumfries and Galloway) (Con)]

For many years, I commuted by aircraft from Scotland to Dublin—so many years, in fact, that I can still recall there are eight emergency exits on a Boeing 737-800. There are two at the front, two at the rear and four over-wing exits. What a great pity that this Bill does not have an amendment that is an escape slide.

While sustainable aviation fuel sounds wonderful, it is burdened with many inconvenient facts. The first is that there is no SAF production industry at the scale required. While new clause 1 is a bold attempt to jump-start production by repurposing old facilities, it is a jumbo jet of a task. The World Economic Forum estimates that by 2030, global demand for SAF is expected to reach 70 million tonnes per annum—around 4% to 5% of total jet fuel consumption.

Meeting likely demand in just five years requires an additional 5.8 million tonnes of capacity. What is the investment required to reach even that relatively modest goal? The WEF pitches it at somewhere between $19 billion and $45 billion globally. If that does not give our legislative autopilot the warning, “Terrain! Terrain! Pull up!”, then it should do. New clause 1 is unaffordable, whether backed by public or private finance, and I am afraid it is doomed to fail.

It is certain that the vast input costs will result in massively higher costs for passengers and air freight. I support the vital new clause 6, which would force an assessment of the economic impact of this Bill, which I fear will be nothing short of devastating. Some might piously accept fewer flights to the Costas or a little less airfreighted Kenyan mangetout on the dinner table, but making air travel ruinously expensive will have implications for thousands of jobs—millions globally—in not only aviation, but tourism. Many flights are not indulgences, but lifelines. We are an island nation, and many communities within the UK are entirely reliant on air links.

Will Britain—so long the pioneers of aviation, with a history stretching back to the first scheduled international passenger flight and the first jet airliner—be foremost in SAF? Probably not, for mandating SAF is easier than producing it, especially in a country with power prices as exorbitant as ours. Energy bills in Dumfries in my constituency are four times what they are in Dumfries in Virginia in the United States, and they are cheaper still in China.

We need a lot of power to make SAF. Many question its green credentials when so much carbon is generated in its production. Amendment 10 is a bid to explore the serious issues around SAF derived from either organic or synthetic sources. Much is made of an 80% reduction in greenhouse gases using SAF sourced from waste fat and oil feedstocks, but, as we have heard, those basic building blocks are in limited supply. That issue is also addressed in, though not solved by, new clause 2. Using crops as feedstock may not reduce greenhouse gases at all, and there are huge implications of turning prime agricultural land and billions of gallons of water over to producing crops for fuel, rather than food. Again, Britain is at a disadvantage. America’s vast corn belt might get involved, but the British bioethanol industry is a warning to us, for it was not able to survive on current targets for the content in road fuel.

Other amendments, including amendment 11, concern themselves with how a revenue certainty mechanism will operate. My concern is that we risk creating a self-licking ice cream—a self-perpetuating system with no purpose other than to sustain itself. This Bill could guarantee moneys that simply offset the costs of manufacturing SAF, which is itself made expensive by green levies. Would it not be better to put what money we have available into aviation excellence, driving up the efficiency of jet engines and airframes? Aviation is already playing its part in reducing its carbon footprint—according to some experts, engine efficiency is already up by as much as 83% from the early days of the de Havilland Comet jet liner. That progress can continue, although super-efficient jets need superalloys to handle the extremes of temperature in their engines, and those require the sorts of rare earths that China is hoovering up. Canada, by the way, has many of the same critical minerals; might we be better off investing in those than subsidising SAF?

If we want really big carbon savings, we ought to look to the sea. Much of what we trade—in and out—goes by sea, and cargo ships are heavily reliant on bunker oil, a tar-like substance with heavy emissions. If we want novel fuels, this island nation should look once more to Tennyson’s “boundless deep”, where the salt-caked smoke stacks belch still. Meanwhile, the wild blue yonder of the skies must not be made inaccessible simply by expensive green dogma.

[Baggy Shanker (Derby South) (Lab/Co-op)]

Aviation is central to our economy and our way of life, whether it is delivering well over 300,000 jobs here in the UK, contributing over £22 billion to our economy, driving inbound tourism, or connecting communities, businesses and families the world over. I am proud of our world-leading aviation sector in Derby and many other places across the UK, and while aviation is an integral part of our economy, it is also one of the most challenging to decarbonise. Despite the scale of the challenge, though, we must keep pushing forward, because—as I have said before, and as I will say again now—without net zero in aviation, there is no net zero, full stop.

To ensure that future generations are able to access the opportunities that air travel can provide, we need to make sure that flying is greener. This Bill does exactly that. It will unlock the potential of UK SAF by delivering the confidence and stability that SAF producers need to continue to turbocharge growth as they drive forward green innovation. I welcome the Bill as a clear statement of intent that this country is absolutely serious about decarbonising the future and future-proofing our world-leading aviation sector. It is the right thing to do, and we must do it.

[Luke Taylor (Sutton and Cheam) (LD)]

I chair the all-party parliamentary group for the future of aviation, travel and aerospace, and the debate on SAF has been a focus of many of our meetings. As a cover-all, I should declare my interests, having met with AirportsUK, Airlines UK, ADS Group, LanzaJet, Back British SAF, Valero, alfanar and others over the past six months. I also worked in the aviation industry for 16 years prior to being elected. I rise to speak in support of new clauses 1 to 5, tabled by my colleagues, and new clause 7. I also encourage the Government to support amendments 8 and 9, tabled by the Conservatives, which would strengthen and improve the Bill and give us the best chance to achieve its targets. I will tell the House why.

In 2023, aviation accounted for 2.5% of global energy-related CO2 emissions; however, when non-CO2 effects are included, its contribution to climate warming increases to approximately 4%. Although that is a small fraction of global emissions, it is not insignificant. However, in my experience, few sectors take their role in bringing down emissions and tackling climate change as seriously as aviation, primarily because fuel burnt and emissions released is money spent.

As other Members have already made clear, decarbonising aviation and achieving net zero carbon UK aviation will require a huge range of different measures. Measures such as Operation Blue Skies, a global contrail avoidance system, will reduce the density of the heat-trapping contrails produced by aircraft, which creates nearly half the overall climate-warming impacts. Continuing improvements in aircraft engine and airframe efficiency are also critical, and that too has been mentioned by others.

Oral Answers to Questions

Baggy Shanker Excerpts

Thursday 11th September 2025 Commons Chamber

[Heidi Alexander]

I know the importance of affordable public transport to people in Britain. I know the importance of the fuel duty freeze that we brought in last year. I assure the right hon. Gentleman that I will have conversations across Government to protect businesses and the travelling public.

[Baggy Shanker (Derby South) (Lab/Co-op)]

T3. The cost of car insurance has gone through the roof in recent years, with quoted prices rising on average 82% since 2021. Car insurance is an essential, not a luxury, so I welcome the Government’s commitment to tackle the spiralling costs for drivers in Derby and across the UK. Will the Secretary of State provide an update on what progress her taskforce is making to get a fair deal for drivers when it comes to car insurance?

[Simon Lightwood]

This Government committed in our manifesto to tackle the high cost of motor insurance, and I am pleased to see recent data suggesting that average premiums are falling. The Government’s taskforce, chaired by the Department for Transport and His Majesty’s Treasury, continues to work to identify short and long- term policy actions that may contribute to stabilising or reducing premiums.

Regional Transport Inequality

Baggy Shanker Excerpts

Thursday 11th September 2025 Commons Chamber

[Baggy Shanker (Derby South) (Lab/Co-op)]

I thank my constituency neighbour, my hon. Friend the Member for Derby North (Catherine Atkinson), for securing this vital debate. In Derby, like many other parts of the country, transport is the glue that holds our community together, but Derby is also a city of makers. We have a unique transport manufacturing heritage to be proud of, and a future to be excited about.

If we are talking about investment in our public transport, however, it is a totally different story. While Derby powers our supply chain, the east midlands has been left lagging behind when it comes to funding our transport infrastructure. Under successive Governments, our region has sat consistently at the back of the queue for investment. In 2023-24, that meant that transport spending in the east midlands was just 54% of the UK average—shockingly, the lowest of any UK region or nation, as we heard earlier. That is not just a number. It is delays, lost opportunities and frustration for people just trying to go about their day to day.

Ask anyone in our community and they will say that they have been stuck on the same congested roads for years, and they have watched vital bus services disappear, as our region has faced the consequences of the deepest bus cuts in the country since 2008. Understandably, people are absolutely fed up. That is why I am proud that this Labour Government, along with our fantastic East Midlands Mayor, Claire Ward, are wasting no time turning the page. With a record £2 billion secured earlier this year to tackle congestion and improve connectivity across the east midlands, we are finally starting to put things right.

That is not all. Whether it is moving forward on upgrades to the A38 to end Derby’s traffic gridlock, or the introduction of the Bus Services (No. 2) Bill, protecting thousands of miles of lifeline routes across our region, progress is being made. There is still lots more to do to put decades of under-investment behind us. Securing projects such as the electrification of the midlands main line would supercharge our region, creating 5,000 jobs, reducing journey times and improving reliability, as well as unlocking over £400 million worth of economic benefit for the region.

To transform our transport infrastructure, we need sustained, long-term funding in our region that, at the very minimum, matches the UK average. I look forward to seeing that delivered through action and investment from a Government who back Derby and the east midlands.

Sustainable Aviation Fuel Bill

Baggy Shanker Excerpts

2nd reading
Wednesday 11th June 2025 Commons Chamber

[Baggy Shanker (Derby South) (Lab/Co-op)]

I refer the House to my business interests in the Register of Members’ Financial Interests.

As a proud advocate of UK aviation, I am pleased to speak in support of the Sustainable Aviation Fuel Bill, and I add my thanks to the Aviation Minister for his determination in support of UK aviation and to the Secretary of State for her leadership. By backing industry with a revenue certainty mechanism, the Bill will turbocharge the production of UK SAF, reducing reliance on imports and generating jobs up and down the country. As one of the most carbon-intensive and hardest-to-decarbonise forms of transport, aviation is vital to get right. Alternative and sustainable aviation fuels will help us to safeguard the future of our planet, because without a decarbonised aviation sector, there will be no net zero.

Decarbonising will ensure that future generations can enjoy the opportunities that air travel brings without compromising the health of our planet. It will ensure that our regional economies continue to benefit from the growth that the aviation sector can offer, such as the whopping 6,000 jobs that East Midlands airport supports. In Derby, we are already making bold strides towards our net zero future. I am proud that Rolls-Royce moved quickly to confirm the compatibility of its long-haul aircraft engines, in both the wide body and business jet sector, with 100% SAF usage. The Derby factories will continue to play a significant role in shaping the future of aviation decarbonisation for years to come.

We recognise that decarbonisation will not be without its challenges. Sustainable aviation fuels offer a practical and innovative solution to those challenges, with SAF made from waste emitting a staggering 89% less carbon than burning conventional jet fuel. This is what the SAF Bill recognises. It is a bold and necessary step forwards to secure a sustainable net zero future for aviation. I am proud to support it.

Oral Answers to Questions

Baggy Shanker Excerpts

Thursday 15th May 2025 Commons Chamber

[Laurence Turner (Birmingham Northfield) (Lab)]

11. What recent assessment she has made of the adequacy of the condition of local roads.

[Baggy Shanker (Derby South) (Lab/Co-op)]

19. What recent assessment she has made of the adequacy of the condition of local roads.

[The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)]

We are determined to end the pothole plague on our roads, which is the result of a decade of under-investment by the previous Government. We have provided an extra £500 million for councils this year to allow them to make an immediate start on this.

[Lilian Greenwood]

My hon. Friend has been dogged in raising this issue with me and the Department, and I assure him that we will make an announcement on the way forward as soon as possible. Following a consultation with the council, we have been carefully considering its formal representations on this matter, and we are committed to working together in the best interests of his constituents, the people of Birmingham and the taxpayer.

[Baggy Shanker]

Motorists and cyclists across the country are still facing the Tory pothole plague. In Derby, 17% of our roads are in a poor condition due to Tory austerity. It is not right that drivers have to fork out hard-earned cash to the tune of a whopping £460 for repairs that are more severe than a puncture. Can the Minister please outline how her Department plans to crack on with protecting drivers and fixing potholes in Derby, the east midlands and across the UK?

Oral Answers to Questions

Baggy Shanker Excerpts

Thursday 27th March 2025 Commons Chamber

[Heidi Alexander]

This Government are committed to moving more freight from road to rail, which is the right thing to do for our environment and our economy. I would be happy to have that meeting with my hon. Friend.

[Baggy Shanker (Derby South) (Lab/Co-op)]

Derby station has recently been revealed as the seventh worst for delays in the UK. When people cannot get to work on time, it is not just a pain for them; it also impacts productivity and holds back our local economies. Will the Secretary of State outline the steps she is taking to tackle delayed trains in Derby and the east midlands, so that the transport system supports economic growth rather than holding it back?

Oral Answers to Questions

Baggy Shanker Excerpts

Thursday 9th January 2025 Commons Chamber

[Simon Lightwood]

The Rail Minister has met MPs from both sides of the House to discuss this issue and has attended an industry programme board to ensure that passenger interests are considered and that disruption is minimised for passengers, both during and after construction.

[Baggy Shanker (Derby South) (Lab/Co-op)]

2025 is an exciting year for Derby, partly because of the progress on Great British Railways, which will be headquartered in Derby, and rightly so. Can we also make this the year that the British public fall in love again with rail travel, by giving GBR a strict timetable to simplify complicated ticketing and fares and to implement digital pay-as-you-go, as well as automatic compensation?

[Mr Speaker]

Order. I am not sure that fits the original question. We have probably strayed too far.