UK Parliament considers bill to create revenue certainty mechanism for SAF

May 20, 2025

BY Erin Voegele

A bill to formally adopt a revenue certainty mechanism to support the production of sustainable aviation fuel (SAF) was introduced in the U.K. Parliament on May 14. The proposed scheme is in the form of a guaranteed strike price (GSP), a mechanism designed to ensure SAF producers receive a fixed price per unit of fuel. 

The bill would fund the revenue certainty mechanism via a levy of suppliers of aviation fuel to the U.K. Once finalized, the revenue certainty mechanism is expected to help attract investment in new SAF projects by helping to reduce risk.  

Introduction of the legislation follows a public consultation on options for the revenue certainty mechanism launched by the U.K. government in March. 

“The new financial mechanism is another display that the U.K. is rock solid in its commitment to building a prosperous hub for homegrown sustainable fuel production,” said the U.K. Department of Transport in a statement. “Furthermore, this vital update provides SAF producers and the industry at large the confidence and stability to plough investment into clean energy.”

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The department on May 14 also announced the U.K. government will allocate an additional £400,000 in funding to support the testing and qualification of green fuels, helping to get them to market more quickly. 

Both the revenue certainty scheme and additional funding aim to support the U.K.’s SAF mandate, which came into force earlier this year. By law, SAF must now account for at least 2% of all jet fuel in flights taking off from the U.K. The mandate is set to expand to 10% in 2030 and 22% in 2040.

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