Sustainable Aviation Fuel Bill

Judith Cummins Excerpts

Report stage
Wednesday 15th October 2025 Commons Chamber

[Olly Glover (Didcot and Wantage) (LD)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Judith Cummins)]

With this it will be convenient to discuss the following:

New clause 2—Review of the supply of bioethanol for use in sustainable aviation fuel production—

“(1) The Secretary of State must, within six months of the passing of this Act, publish and lay before Parliament a report reviewing measures to encourage the supply of materials for sustainable aviation fuel.

(2) The report under subsection (1) must include—

(a) an assessment of the impact of the closure of bioethanol plants on the ability to encourage overall increases in sustainable aviation fuel production;

(b) options for mitigating any adverse impacts on the availability of supply of sustainable aviation fuel by the closure of bioethanol plants;

(c) recommendations for any necessary Government action to promote a stable supply of bioethanol for sustainable aviation fuel.”

This new clause would require the Secretary of State to lay before Parliament a report outlining measures to encourage the supply of materials for SAFs, including considering the impact of bioethanol plant closures on encouragement to increase supply.

New clause 3—Increasing greenhouse gas saving potential of sustainable aviation fuel—

“(1) The Secretary of State must, within six months of the day on which this Act is passed, publish and lay before Parliament a report which sets out a strategy for increasing the greenhouse gas emission saving resulting from the promotion of sustainable aviation fuel production in the United Kingdom.

(2) The report required under subsection (1) must include, but not be limited to—

(a) proposals for incentivising the research and development of sustainable aviation fuels that maximise greenhouse gas emission savings;

(b) an assessment of, and recommendations for increases to, the minimum required greenhouse gas emission reduction in order for a sustainable aviation fuel to be issued a SAF certificate;

(c) an assessment of, and recommendations for increases to, minimum ratios for renewable content in blended sustainable aviation fuels, for the purpose of more quickly reducing greenhouse gas emissions.

(3) Twelve months after the publication of the report required under subsection (1) and within every twelve months thereafter, the Secretary of State must publish a further report which—

(a) sets out progress against the strategy; and

(b) makes any necessary adjustments to the strategy as a result of developments in the sustainable aviation fuel industry.

(4) In this section, “SAF certificate” has the meaning given in article 2 of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.”

New clause 4—Reporting of Sustainable Aviation Fuel targets—

“(1) The Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024 is amended as set out in this section.

(2) In paragraph (3), after sub-paragraph (5) insert—

“(5A) The Secretary of State may vary the table in paragraph (7) in order to increase the obligation in any given year.”

(3) In sub-paragraph 33(2)(c) leave out “, and”

(4) After sub-paragraph 33(2)(d), insert “and

(e) consider whether the SAF obligation set out in the table in sub-paragraph 3(7) of this Order should be increased for any given year, and if so, set out steps the Secretary of State will take to effect such an increase.”

(5) After paragraph 33(2) insert—

“(2A) A copy of a report published under this article must—

(a) be laid before Parliament; and

(b) be sent to the relevant select committee of each House of Parliament.

(2B) In sub-paragraph 33(2A)(b), “the relevant select committee” is—

(a) in the House of Commons, the Transport Committee, provided that—

(i) if the name of that Committee is changed, reference is instead taken to mean the new name, and

(ii) if the functions of that Committee with respect to Sustainable Aviation Fuel become functions of a different committee of the House of Commons, reference is instead taken to the committee by whom the functions are then exercisable;

(b) in the House of Lords, any such Committee as the Chairman of Committees may appoint.””

New clause 5—Air travel providers’ use of sustainable aviation fuel: reporting requirements—

“(1) Within six months of the passing of this Act, the Secretary of State must, by regulations, establish a requirement for air travel providers to report annually on their use of sustainable aviation fuel.

(2) Regulations made under subsection (1) must specify—

(a) that the annual reports include figures for sustainable aviation fuel usage which can be easily understood, including expressed as—

(i) an absolute volume, and

(ii) proportion of all aviation fuel used; and

(b) that the annual reports are accessible to members of the public including by being made available on their websites.

(3) Any regulations made under subsection (1) must be made under the negative procedure.”

New clause 6—Economic Impact of the Act—

“(1) The Secretary of State must lay before Parliament a report on the economic impact of the Act.

(2) This report must include, but shall not be limited to—

(a) the impact on the UK’s aviation fuel industry;

(b) the impact on the UK’s sustainable aviation fuel supply including the impact on all small, medium and large producers and potential importers of sustainable aviation fuel;

(c) the impact on international and domestic tourism in the UK; and

(d) the impact on passenger air fares.

(3) The report required by subsection (1) must be laid before Parliament within one year of this Act being passed.”

New clause 7—Targets for power-to-liquid aviation fuel usage—

“(1) The Secretary of State must, within 12 months of the passing of this Act, conduct a review of the power-to-liquid aviation fuel targets as set out in section (3) of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.

(2) The review carried out under subsection (1) must only consider—

(a) the effectiveness of the existing power-to-liquid aviation fuel target and;

(b) whether the target should be increased.

(3) In carrying out the review under subsection (1) the Secretary of State must consult with—

(a) producers of power-to-liquid aviation fuel;

(b) airlines;

(c) experts in sustainable aviation fuel production; and

(d) any other persons the Secretary of State deems appropriate.

(4) A report setting out the findings of the review must be published and laid before both Houses of Parliament.”

Government amendment 1.

Amendment 10, in clause 1, page 2, line 4, at end insert—

“(4A) The terms under subsection (4)(c) must include a requirement for the producer to consider the longevity of supply and relative environmental impact when prioritising between organic and synthetic derived sustainable aviation fuel solutions.”

Government amendments 2 to 5.

Amendment 11, in clause 6, page 4, line 19, leave out from “pay” to end of line 22 and insert

“to the designated counterparty in each month a standardised levy on their relevant disposals of aviation fuel products in the preceding month that must be publicised on invoices expressed in pence per standard litre.”

This amendment requires the Secretary of State to set a standardised levy rate payable by all suppliers of aviation fuel, that must be publicised by suppliers of aviation fuel on invoices to their customers.

Government amendment 6.

Amendment 8, in clause 12, page 7, line 6, at end insert—

“(3) A direction given under subsection (1) must include a requirement for the designated counterparty to report on—

(a) the impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the proceeding 12 month period;

(b) a projection of the expected impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the following five year period.

(4) A report under paragraph (a) must be made within one year of the date of Royal Assent to this Act and annually thereafter.

(5) The Secretary of State must lay a report made under paragraph 3(a) before Parliament.”

This amendment would require the designated counterparty to report on the impact that the revenue certainty mechanism has on passenger air fares.

Amendment 9, page 7, line 6, at end insert—

“(3) A direction given under subsection (1) must include a requirement for the designated counterparty, where a venue certainty contract would result in a new production facility, to prioritise entering into any such contracts with producers that will use UK owned technologies in that facility.”

This amendment would require the designated counterparty to prioritise UK-based technology when entering contracts.

Amendment 12, page 7, line 6, at end insert—

“(3) Within twelve months of the passing of this Act, the Secretary of State must make a direction under subsection (1) which requires the designated counter party to prioritise entering at least one revenue certainty contract with a producer of Power to Liquid sustainable aviation fuel if doing so will allow for at least one plant to reach Final Investment Decision by 31 December 2026.”

Government amendment 7.

[Olly Glover]

Global demand for aviation continues to grow; it is projected to be two or three times bigger by 2050. In 2024, there was a record rate of increase in carbon emissions, according to the World Meteorological Organisation, and there was a new daily record for global aviation emissions in July 2025. Nearly half of all the carbon emissions to date from aviation have occurred since 2000.

Sustainable aviation fuel has been talked up for years as the solution, yet there has been a poor track record of unambitious targets not being matched by delivery. For example, in 2010, Boeing announced the target that 1% of aviation fuel globally should come from SAF by 2015, and in 2019, the International Air Transport Association set out hopes of reaching 2% by 2025, but today, globally, the figure is just 0.3%. The UK’s published figure this year of 1.29% is better, but it nevertheless shows how far we have to go.

The Conservative Government promised back in 2022 to have five commercial UK SAF plants operational by 2025, but there is still only one. It is therefore right of the Government to have introduced legislation to attempt to make sure that the latest set of SAF targets move from fantasy to realistic, credible and deliverable plans, although these will ultimately need to transition us towards the development of truly zero-carbon flight technology. I thank my hon. Friends the Members for Wimbledon (Mr Kohler), and for Sutton and Cheam (Luke Taylor), for their contribution to the Bill Committee, and I hope that Members from across the House will consider the Liberal Democrat amendments.

New clauses 1, 2 and 3 all increase the chances of the intention behind the Bill being realised. New clause 1 requires the Secretary of State to assess and report on the potential for disused oil refineries and similar industrial sites to be used for the production of sustainable aviation fuel. New clause 2 requires the Secretary of State to assess the measures being taken to encourage the supply of materials for production of sustainable aviation fuel, and has a focus on bioethanol plants. That is especially important in the context of the expected closure of the Vivergo bioethanol plant near Hull, following the Government’s decision not to provide it with financial support.

New clause 3 requires the Secretary of State to report to Parliament on the development of a strategy for analysing and maximising the potential of sustainable aviation fuels to contribute to reductions in greenhouse gas emissions.

I also speak in support of two new clauses tabled by my hon. Friend the Member for West Dorset (Edward Morello), both of which would improve the Bill by providing greater rigour and scrutiny of progress towards sustainable aviation fuel targets. New clause 4 would give the Secretary of State the power to increase SAF production obligations where necessary, and to ensure that reports on progress are laid before Parliament and relevant Select Committees. New clause 5 would introduce requirements for air travel providers to report on their use of sustainable aviation fuel, and to provide annual reports to the public via their websites. Collectively, new clauses 1 to 5 would strengthen the Bill and increase its credibility when it comes to SAF production and reporting on progress.

The Government’s SAF mandate requires just 22% of aviation fuel to be sustainable by 2040. That compares poorly with the European Union’s target of 32% by 2040. It is hard to square an objective of net zero aviation by 2050 with just 22% of fuel being sustainable a decade earlier, unless we put in place measures alongside SAF to cut emissions and make climate-friendly flight a reality. We urge the Government to clarify their plans for achieving their targets, particularly as hope for SAF progress is being used to state that Heathrow and Gatwick expansion are compatible with our greenhouse gas emissions reduction targets.

--- Later in debate ---

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

On a point of order, Madam Deputy Speaker. Earlier today, the Prime Minister promised that certain papers would be published as soon as they could be, but he did not give a time. Has there been any indication of when those papers will be published? We are still waiting for them.

[Madam Deputy Speaker (Judith Cummins)]

I thank the hon. Gentleman for his point of order. While that is not a matter for the Chair, I am sure that those on the Treasury Bench will have heard what he said.

Bill read the Third time and passed.