Sustainable Aviation Fuel Bill

Lord Hendy of Richmond Hill Excerpts

Tuesday 24th February 2026 Lords Chamber

Moved by

[Lord Hendy of Richmond Hill]

That the Bill do now pass.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, I am grateful for the scrutiny, due diligence and expertise of noble Lords during the debates on this legislation. This Bill is a huge step forward. By unlocking the potential of sustainable aviation fuel production in the UK, we can significantly reduce aviation’s greenhouse gas emissions, grow the economy and support green jobs. Your Lordships’ input as this Bill has progressed through this House has meant that it leaves this place in better shape.

I thank the noble Lord, Lord Moylan, whose engagement and scrutiny of this legislation has been welcome, particularly on HEFA. I am sorry about the acronyms—this Bill is particularly full of them. The noble Baroness, Lady Pidgeon, and the noble Earl, Lord Russell, have been exemplary in their engagement on the Bill. I thank them for their continued scrutiny, and in particular for making sure that transparency is at the forefront of the Bill. I also thank the noble Lord, Lord Grayling, whose amendment to the Energy Act paved the way for the first consultation on a revenue certainty mechanism for SAF. His expertise on this subject has been invaluable.

The Bill will now ensure the Secretary of State can enter into revenue certainty contracts only where the supported SAF is produced at a facility in the UK, which was always the Government’s intention. In addition, I thank the noble Lord, Lord Ravensdale, for the expertise and clarity he has brought to our discussions on power to liquid and feedstocks more generally. Finally, I extend my personal thanks to all the officials who have supported me, including the Bill team, legal colleagues, the drafting team in Parliamentary Counsel and others who have been involved in its successful passage.

I look forward to seeing this Bill pass. If we are to create the jobs and attract the business investment Britain needs, we must grow aviation and grow it sustainably. This Bill does just that. I beg to move.

[Lord Harper (Con)]

My Lords, before I say a few words, I would like to declare my interest, as listed in the register, as non-executive chair of RVL Aviation. I thank the Minister and the Government for continuing the sustainable aviation fuel regime that we set out, the revenue certainty mechanism and the investment in UK industrial production of sustainable aviation fuel. I thank him for listening carefully to the points made by colleagues in Committee, and for bringing forward appropriate amendments on Report. Finally, I thank him for responding to a number of points I made by committing to keeping the House informed as government policy develops in this area. I am very pleased to support the Bill as it makes its way on to the statute book.

--- Later in debate ---

[Lord Moylan (Con)]

My Lords, despite the applause from all sides of the Chamber for this Bill, I am afraid it remains a very troubling piece of legislation. It has been described by the noble Baroness, Lady Pidgeon, effectively as a piece of net-zero legislation, but, as I have insisted throughout its passage, this is not net- zero legislation. The net-zero effect in relation to sustainable aviation fuel was achieved by the SAF mandate put in place 15 or 16 months ago, which requires airlines to mix in an increasing amount of HEFA, and, increasingly, other fuels, over time. That is what will make the contribution to net zero.

This Bill is in fact a piece of industrial policy. It is based on the premise that somehow, because we will consume SAF, we need to be a world leader in producing it. Despite my pressing the Government repeatedly, the Minister has not been able to offer any reasons for thinking that we have a comparative advantage in this field and that we should dedicate resources to it. The Bill’s means of doing this is by piling subsidy upon subsidy. It really is, as I say, very troubling.

Through this Bill, we are now guaranteeing a floor price for SAF producers, and the risk is being transferred away from them. That risk is being transferred down the chain to airlines and their passengers. We on our side sought a commitment from the Government to be transparent about the likely impact on fares. Instead, they, along with the Liberal Democrats, chose to shield the travelling public from the dangerous knowledge of what they will actually pay for this policy over the years ahead. Much of what matters to make this Bill work is in fact saved for secondary legislation and indeed for commercially confidential negotiations between officials on the one hand and the shark-toothed lawyers of the international investor sector on the other. It is a recipe for success—I am sure the Minister would want to say that.

Despite all that, I cannot fail to thank the Minister for his now reliable courtesy and helpfulness in the passage of this legislation, in working with the official Opposition and other noble Lords, and in his responsiveness. I also thank his officials, who have been very helpful and have responded rapidly and efficiently when we have had questions for them. I am grateful to all those people for doing that.

I pay particular tribute to my noble friends Lord Harper and Lord Grayling for their contribution in the debate, but also to the noble Lord, Lord Ravensdale, with whom I worked on certain amendments. We have achieved some improvements to the Bill as it has passed through your Lordships’ House. None the less, the best solution for this Bill would be that it is never called upon or used, and that we procure sustainable aviation fuel for use in our airline industry from the cheapest and most efficient source, whether that be produced here in Britain or elsewhere.

[Lord Hendy of Richmond Hill (Lab)]

I thank all noble Lords and I commend the Bill to the House.