Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent assessment his Department has made of the viability of the UK sustainable aviation fuel deadline of 2025.
Answered by Trudy Harrison
We want the UK to be a global leader in sustainable aviation fuel (SAF) and we see the potential to create over 5,000 jobs from a domestic SAF industry. Our SAF programme is one of the most comprehensive in the world. We continue to look at options to help build a UK SAF industry, in addition to the government’s proposed SAF mandate and £180m grant funding mechanisms.
As part of our work we are engaging industry, including through the Jet Zero Council SAF Delivery Group, to get a better understanding of how private investment in the UK SAF industry can be leveraged, and the potential need for and impacts of a price stability mechanism such as a contracts for difference scheme.
We are working at pace on a number of levers to support the UK SAF industry, accelerating its commercialisation and ensuring existing and prospective SAF plants developing in the UK can progress to construction as quickly as possible.
Our support includes a £168m capital grant funding competition to support the development of advanced fuels plants and £12m for the operation of a SAF clearing house to help certify new fuels and support early stage aviation fuel testing for years 2022-25; a consultation on the introduction of a SAF blending mandate to drive the uptake of SAF in the UK; a £400m partnership with Breakthrough Energy which aims to drive investment into the next generation of clean energy technologies, including SAF; and funding to help deliver the world's first net zero transatlantic flight fuelled by 100% sustainable aviation fuel by the end of 2023. We are also exploring what additional policy interventions may be needed to accelerate the commercialisation and scale up of SAF plants developed in the UK such as those that address price stability and risk.
Unique circumstances globally, including the war in Ukraine, have pushed up transport fuel prices. How current fuel and future SAF costs are passed through to passengers is a commercial decision for airlines. Future SAF cost uncertainties make it difficult to predict exactly how much ticket prices could increase, but our analysis suggests this impact will be relatively small.
Industry has welcomed the potential introduction of a mandate and we continue to work with all stakeholders on this matter, aiming to reduce any adverse effects on air travel.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for Transport:
To ask the Secretary of State for Transport, if his Department will take steps to help investors overcome the initial risks of investing in sustainable aviation fuel initiatives.
Answered by Trudy Harrison
We want the UK to be a global leader in sustainable aviation fuel (SAF) and we see the potential to create over 5,000 jobs from a domestic SAF industry. Our SAF programme is one of the most comprehensive in the world. We continue to look at options to help build a UK SAF industry, in addition to the government’s proposed SAF mandate and £180m grant funding mechanisms.
As part of our work we are engaging industry, including through the Jet Zero Council SAF Delivery Group, to get a better understanding of how private investment in the UK SAF industry can be leveraged, and the potential need for and impacts of a price stability mechanism such as a contracts for difference scheme.
We are working at pace on a number of levers to support the UK SAF industry, accelerating its commercialisation and ensuring existing and prospective SAF plants developing in the UK can progress to construction as quickly as possible.
Our support includes a £168m capital grant funding competition to support the development of advanced fuels plants and £12m for the operation of a SAF clearing house to help certify new fuels and support early stage aviation fuel testing for years 2022-25; a consultation on the introduction of a SAF blending mandate to drive the uptake of SAF in the UK; a £400m partnership with Breakthrough Energy which aims to drive investment into the next generation of clean energy technologies, including SAF; and funding to help deliver the world's first net zero transatlantic flight fuelled by 100% sustainable aviation fuel by the end of 2023. We are also exploring what additional policy interventions may be needed to accelerate the commercialisation and scale up of SAF plants developed in the UK such as those that address price stability and risk.
Unique circumstances globally, including the war in Ukraine, have pushed up transport fuel prices. How current fuel and future SAF costs are passed through to passengers is a commercial decision for airlines. Future SAF cost uncertainties make it difficult to predict exactly how much ticket prices could increase, but our analysis suggests this impact will be relatively small.
Industry has welcomed the potential introduction of a mandate and we continue to work with all stakeholders on this matter, aiming to reduce any adverse effects on air travel.
Asked by: Matthew Offord (Conservative - Hendon)
Question to the Department for Transport:
To ask the Secretary of State for Transport, if he will make it his policy to accelerate the development of a (a) commercial and (b) sustainable aviation fuel industry.
Answered by Trudy Harrison
We want the UK to be a global leader in sustainable aviation fuel (SAF) and we see the potential to create over 5,000 jobs from a domestic SAF industry. Our SAF programme is one of the most comprehensive in the world. We continue to look at options to help build a UK SAF industry, in addition to the government’s proposed SAF mandate and £180m grant funding mechanisms.
As part of our work we are engaging industry, including through the Jet Zero Council SAF Delivery Group, to get a better understanding of how private investment in the UK SAF industry can be leveraged, and the potential need for and impacts of a price stability mechanism such as a contracts for difference scheme.
We are working at pace on a number of levers to support the UK SAF industry, accelerating its commercialisation and ensuring existing and prospective SAF plants developing in the UK can progress to construction as quickly as possible.
Our support includes a £168m capital grant funding competition to support the development of advanced fuels plants and £12m for the operation of a SAF clearing house to help certify new fuels and support early stage aviation fuel testing for years 2022-25; a consultation on the introduction of a SAF blending mandate to drive the uptake of SAF in the UK; a £400m partnership with Breakthrough Energy which aims to drive investment into the next generation of clean energy technologies, including SAF; and funding to help deliver the world's first net zero transatlantic flight fuelled by 100% sustainable aviation fuel by the end of 2023. We are also exploring what additional policy interventions may be needed to accelerate the commercialisation and scale up of SAF plants developed in the UK such as those that address price stability and risk.
Unique circumstances globally, including the war in Ukraine, have pushed up transport fuel prices. How current fuel and future SAF costs are passed through to passengers is a commercial decision for airlines. Future SAF cost uncertainties make it difficult to predict exactly how much ticket prices could increase, but our analysis suggests this impact will be relatively small.
Industry has welcomed the potential introduction of a mandate and we continue to work with all stakeholders on this matter, aiming to reduce any adverse effects on air travel.
Asked by: Lord Balfe (Conservative - Life peer)
Question to the Department for Transport:
To ask Her Majesty's Government what consideration they have given to including a representative from the British Airline Pilots Association to their Jet Zero Council membership.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
When the Jet Zero Council was established in July 2020, we sought to ensure that all relevant parts of the industry were represented, from airlines, airports, and aerospace manufacturers, to NGOs, academics, and start-ups.
To ensure that the Council remains at the forefront of driving zero emission transatlantic flight within a generation, we are currently reviewing the Council’s membership to ensure it reflects the expertise required to deliver this challenge. Though there will always be practical limits to the size of the Council, and we are not able to accommodate all individual requests for membership.
To support the delivery of the Jet Zero Council and allow wider participation in its work, we have established Delivery Groups focussed on Sustainable Aviation Fuels (SAF) and Zero Emission Flight (ZEF), which we encourage organisations with relevant interests to engage with.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what criteria his Department uses to select Jet Zero council members; and what the gender and regional balance is of those council members.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
The Jet Zero Council is jointly chaired by the Transport and Business Secretaries, who are supported by Heathrow Airport’s Emma Gilthorpe as the Jet Zero Council CEO. The Council brings together government with senior leaders in aviation, aerospace, and academia to drive the delivery of new technologies and innovative ways to cut aviation emissions.
When the Council was established in July 2020, we sought to ensure that all relevant parts of the industry were represented, from airlines, airports, and aerospace manufacturers, to NGOs, academics, and start-ups. The Council membership has diverse geographical representation reflective of the aviation and aerospace industry, with members who have regional, national and international reach.
The Jet Zero Council and its two Delivery Groups have a diverse membership from a range of backgrounds. Nearly 40 members are in the full Jet Zero Council and 195 members from 83 organisations are in the Sustainable Aviation Fuel Delivery Group, chaired by Jonathon Counsell of IAG. On 20 April, we launched the Zero Emission Flight Delivery Group, chaired by Rachel Gardner-Poole, and we will seek to ensure that its membership is also reflective of all parts of the industry.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the (a) potential merits and (b) potential environmental and financial impact of implementing a frequent flyer levy.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
Air Passenger Duty (APD) is the UK’s principal tax on the aviation sector. The tax raised £3.6 billion in 2019-20 and its primary objective is to ensure that airlines make a fair contribution to the public finances. Last year, the Government consulted on aviation tax reform and as part of this sought views on whether a frequent flyer levy could replace APD as the principal tax on the aviation sector. In the responses received to the consultation, the Government received a wide range of views on a frequent flyer levy, which it considered carefully.
Following the consultation, the Government published a response which outlined that it was minded to retain APD as the principal tax on the aviation sector, noting in particular continuing concerns around the possible administrative complexity of a frequent flyer levy and around data processing, handling and privacy.
However, in its response to the consultation, the Government announced plans to introduce two new APD distance bands for both domestic and ultra-long-haul flights. The ultra-long haul band will see an additional £4 charged on top of the revised long-haul rate for flights greater than 5,500 miles - ensuring those who fly furthest, and have the greatest impact on emissions, incur the greatest duty. These changes are due to take effect from April 2023, allowing time for the industry to plan for the changes.
More broadly, the Government has put in place a wide range of measures to support the decarbonisation of the aviation industry, including investment of £180 million to support the commercialisation of sustainable aviation fuel (SAF) plants in the UK and the launch of the Jet Zero Council which is a partnership between industry, government and academia to drive the delivery of new technologies and find innovative ways to cut aviation emissions.
Furthermore, the UK’s new Emissions Trading Scheme (ETS) covers participants from the aviation, power and industrial sectors. It sets a total annual cap on greenhouse gases emitted by these sectors. It covers domestic flights within the UK and flights from the UK to the EEA.
Asked by: Rupa Huq (Labour - Ealing Central and Acton)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent assessment he has made of the level of carbon emissions produced by the UK's aviation industry; and what steps he is taking with that industry to reduce carbon emissions from air travel in the UK.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
The Department for Business, Energy and Industrial Strategy publishes UK greenhouse gas emissions figures annually, including domestic and international aviation emissions. The final UK greenhouse gas emissions national statistics from 1990 to 2019 were published in February 2021 and are available here: https://www.gov.uk/government/statistics/final-uk-greenhouse-gas-emissions-national-statistics-1990-to-2019. It showed that in 2019, carbon dioxide emissions from UK domestic aviation were 1.4 Mt CO2e and carbon dioxide emissions from international aviation were 36.7 Mt CO2e.
The 2020 greenhouse gas emissions figures are due to be published on 1 February 2022.
In July 2021, the Department for Transport published the Jet Zero Consultation which sets out our vision for the aviation sector to reach net zero by 2050. We engaged with stakeholders extensively during the development of the consultation and are carefully considering consultation responses in the development of our final Jet Zero Strategy which we aim to publish later this year.
We are working closely with industry to reduce aviation emissions. We have established the Jet Zero Council, bringing together government, industry and academia to drive the delivery of new technologies and innovative ways to cut aviation emissions. We have been supporting the industry through £1.95bn of funding into aerospace R&D through the Aerospace Technology Institute (ATI) programme and recently confirmed the continuation of funding for the ATI programme to 2031. We have also recently announced £180 million of new funding to support the development of sustainable aviation fuel (SAF) plants in the UK, building on the progress made through the previous Green Fuels Green Skies competition, and a £400 million partnership with Breakthrough Energy, through which SAF projects can bid for additional capital.
Asked by: Clive Lewis (Labour - Norwich South)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to the £180 million funding for the development of alternative aviation fuel plants announced in the Net Zero Strategy, what assessment his Department made of the potential merits of requiring the aviation industry to (a) fund, (b) match-fund and (c) partly fund the development of alternative fuels; and what meetings officials in his Department have had with recipients of that funding over the last 12 months.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
The £180m funding announced in the Net Zero Strategy, to help accelerate the commercialisation of sustainable aviation fuel (SAF) in the UK, includes £168m of funding for a multi-year competition for funding to produce advanced fuels suitable for aviation and heavy goods vehicles. A further £12m is allocated for the continuation of our SAF clearing house project to accelerate new SAF to the market. SAF is a vital tool in decarbonising aviation and helping the UK reach our net zero goals by 2050.
The department is now developing the eligibility criteria of the new SAF competition, building upon the progress made by, and lessons learnt from, the previous advanced fuels competitions, namely the Advanced Biofuel Demonstration Competition (ABDC), the Future Fuels for Flight and Freight Competition (F4C) and the recent Green Fuels, Green Skies (GFGS) competition. As with the previous successful competitions, the design process will utilise the knowledge and experience of the wider sector, working with existing and prospective SAF producers. It is likely that minimum greenhouse gas savings will be a requirement of receiving funding. Funding will be allocated competitively in line with previous competitions.
No assessment has yet been made as to the balance of funding between industry and Government for the new competition.
DfT officials engage regularly with all the projects eligible for government funding, both through bilateral meetings and as part of regular industry engagement activities. Since its launch in November 2020, over 25 meetings of the Jet Zero Council SAF Delivery Group and its subgroups have been convened.
Asked by: Clive Lewis (Labour - Norwich South)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to the £180 million funding for the development of alternative aviation fuel plants in the Net Zero Strategy, what that funding will be spent on; which companies will receive that funding; and whether receipt of that funding will be linked to, or be conditional on, achieving systems-level emissions reductions from aviation.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
The £180m funding announced in the Net Zero Strategy, to help accelerate the commercialisation of sustainable aviation fuel (SAF) in the UK, includes £168m of funding for a multi-year competition for funding to produce advanced fuels suitable for aviation and heavy goods vehicles. A further £12m is allocated for the continuation of our SAF clearing house project to accelerate new SAF to the market. SAF is a vital tool in decarbonising aviation and helping the UK reach our net zero goals by 2050.
The department is now developing the eligibility criteria of the new SAF competition, building upon the progress made by, and lessons learnt from, the previous advanced fuels competitions, namely the Advanced Biofuel Demonstration Competition (ABDC), the Future Fuels for Flight and Freight Competition (F4C) and the recent Green Fuels, Green Skies (GFGS) competition. As with the previous successful competitions, the design process will utilise the knowledge and experience of the wider sector, working with existing and prospective SAF producers. It is likely that minimum greenhouse gas savings will be a requirement of receiving funding. Funding will be allocated competitively in line with previous competitions.
No assessment has yet been made as to the balance of funding between industry and Government for the new competition.
DfT officials engage regularly with all the projects eligible for government funding, both through bilateral meetings and as part of regular industry engagement activities. Since its launch in November 2020, over 25 meetings of the Jet Zero Council SAF Delivery Group and its subgroups have been convened.
Asked by: Seema Malhotra (Labour (Co-op) - Feltham and Heston)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what discussions he has had with the Civil Aviation Authority on the delivery of decarbonisation targets in aviation as part of the discharge of its economic regulation function.
Answered by Robert Courts - Solicitor General (Attorney General's Office)
We are working closely with the Civil Aviation Authority (CAA) to achieve net zero aviation – or Jet Zero – by 2050. In July, we published the Jet Zero Consultation which focuses on the rapid development of technologies in a way that maintains the benefits of air travel and maximises the opportunities that decarbonisation can bring for the UK. We are currently assessing responses to this consultation, including on whether changes to our approach to landing charges and slots could support our decarbonisation objectives.
We are collaborating with the CAA to support the enabling of demonstration activity of zero- and low-emission aircraft in a safe way, and to ensure the UK remains the best location in which to develop and deploy these new aircraft. We are also working with the CAA as co-sponsors of the Airspace Modernisation Programme, the national programme of airspace change amongst major UK airports.
The CAA are active members of the Jet Zero Council, a key partnership between industry and government – co-chaired by DfT and BEIS Secretaries of State - to drive the delivery of new technologies and innovative ways to cut aviation emissions.