Sustainable Aviation Fuel Bill

Graeme Downie Excerpts

2nd reading
Wednesday 11th June 2025 Commons Chamber

[Graeme Downie (Dunfermline and Dollar) (Lab)]

Like my hon. Friend the Member for Harlow (Chris Vince) said, the hon. Member for Sutton and Cheam (Luke Taylor) should never be ashamed of being a geek of any kind. I definitely do not have his knowledge of formulas or anything like that, but I certainly am a self-professed aviation geek who has spent probably far too long sitting at the end of runways watching planes land for hours on end. When I was in high school, I used to cycle with one of my friends who lived close to the end of Edinburgh airport runway to just sit and watch aircraft come in—to the point that one time, the police came along and asked why these two 14-year-olds were sitting at the end of the runway watching aircraft land. I can assure everyone that nothing untoward or illegal was happening—we were just being that sad and geeky. I think that was the problem the police had; they did not believe that that was what two 14-year-olds were intending to do.

[Luke Taylor]

I would challenge the hon. Member’s commitment to aviation spotting if, during university, he did not take a date to the final approach at Heathrow airport and have her observing the flights coming in for a good two hours. He may be a geek, but he is not quite there yet.

--- Later in debate ---

[Graeme Downie]

I thank the hon. Member for that intervention. I will not ask for a second intervention on how that relationship progressed.

Aviation is a critical part of our national story and our economy, as others have said. As an island nation, we rely on the maritime and aviation sectors to get goods and people in and out of our country, so it is clear that aviation must continue to play a role in our future. In Scotland and in my constituency, that includes the movement of products like salmon and whisky, as well as tourists, to and from Dunfermline and the rest of Scotland. However, with aviation expected to become the largest transport sector emitter of carbon by 2040, it is clear that a range of transformational, long-term changes are needed in the sector to make it sustainable.

I recently had the privilege of hosting a sustainable aviation technology showcase in Parliament with companies such as Airbus, Boeing, easyJet, International Airlines Group and others, including some of the ones that have been mentioned. There I saw technological solutions ranging from radical changes to aircraft design to hydrogen-powered aircraft, as well as a number of SAF producers. I have also heard from Edinburgh airport, one of the largest employers in my constituency, of the importance of airspace reorganisation and regulatory changes, all of which will have a role in modernising aviation and reducing the environmental impact. I know that the Minister has been relentless in pursuing all these avenues to improve aviation in the UK, and we should thank him, his officials and the ministerial team for that work and commitment.

For all those people from different parts of the aviation ecosystem, the issue of SAF has been prime. On taking office, this Government took action much faster than many expected with the introduction of the SAF mandate. It obligates companies supplying fuel to airlines operating out of the UK to either incrementally increase the amount of SAF in use or pay a buy-out fee. That mandate started at 2% and will rise to 10% in 2030 and to 22% in 2040. That is the kind of direction and steer that the industry needed, but it will mean nothing if we do not produce SAF in the UK and invest now in the much longer-term plans for third generation SAF to make that a reality here and to make the UK a world leader in this technology, as well as playing a part in the future of our fledgling hydrogen sector.

Developing a strong SAF industry is a major industrial opportunity for the UK, as others have said. The UK can lead the SAF industry with job creation and innovation. At the event I mentioned, Airbus told me that it is committed to enabling 100% SAF capability across its aircraft production by 2030. According to the Back British SAF campaign, there is potential for over 10,000 jobs in the UK by 2030 and 60,000 jobs by 2050, a number of which would be in Scotland and in my constituency, as well as in the constituencies of other Members across the country. In due course, I hope that some of that might include investment in different parts of the SAF infrastructure in Fife, with proximity to Edinburgh airport and excellent sea, road and rail links.

For these and other reasons, I am delighted to see the Bill come forward. It clearly sets out the revenue certainty mechanism and the framework for setting a strike price that will support businesses and investment cases to make SAF a reality in the UK. It also establishes the route for funding via a levy on suppliers, along with enforcement and oversight.

I hope the Minister might respond in his summing up to a few specific points, some of which have been mentioned by colleagues. Under clause 1, what process does he intend to use to shape precise price points for producers and to calculate the market reference price? Clause 11, on financial penalties, contains provision to amend amounts in the light of inflation. Are those the only circumstances in which penalty amounts can change? Under clause 14, what oversight does he envisage if financial assistance is required to ensure value for money?

Clear and stable policy frameworks like this SAF Bill will be essential to unlocking private investment, accelerating SAF supply chains and positioning the UK as a global leader in the net zero transition, but the pace at which the legislation is introduced will be key, so will the Minister consider what steps he can take to accelerate the creation of a successful SAF industry here in the UK? As my hon. Friend the Member for Falkirk (Euan Stainbank) asked earlier, will the Minister begin work to create strike price contracts so that they are ready as quickly as possible when the legislation is passed? Will he consider moving the start date for the revenue mechanism forward to allow projects to get started as quickly as possible?

The Bill will be a significant part of the future of British aviation, British industry and British growth. I look forward to seeing its progress through the House.