Sustainable Aviation Fuel Bill

Earl Russell Excerpts

Thursday 20th November 2025 Lords Chamber

[Earl Russell (LD)]

My Lords, we too look forward to the maiden speech of the right reverend Prelate the Bishop of Chester, and we welcome him to the House. We are generally supportive of the measures in the Bill but have some concerns about areas of government policy that lie beyond its scope, and a few questions about the details.

To put the Bill in its legitimate context, it will help reduce CO₂ emissions from aviation, but it is not a magic bullet. Alone, it is not a sustainable answer to the challenges we face. Aviation is, of course, one of the hardest sectors to abate and it is expected to show continued and rapid upward growth. Aviation is critical to our economy and our way of life. It moves some 240 million international passengers and 2.4 million tonnes of freight each year, adding £14 billion in GVA to UK GDP. The industry also supports 1 million associated jobs and £4.2 billion in associated passenger duty. Aviation accounts for 7% of UK carbon emissions, but this figure is due to rise significantly, to 11% in 2030 and 16% in 2035. Unless decisive action is taken on a broad range of fronts beyond the scope of the Bill, we will not meet our targets. Net zero 2050 is not optional; it is imperative.

We on these Benches do not wish to challenge any UK family’s right to a holiday. When we debate the Bill, we need to be clear that 15% of people in this country take 70% of the flights, and we need to change that. The Climate Change Committee was clear in 2023 when it said that SAF alone is a risky strategy. My party would reform air passenger duty to target the most frequent flyers. We would ensure that we have an escalating passenger duty so that those who fly the most frequently, pay more. We also oppose overexpansion of the airports, particularly in the south-east. This Government have chosen to take a different path, and it is for them to balance this path of increased airport expansion against their climate change commitments and targets. Therefore, we welcome the Bill but note our caveats.

SAF is widely considered as the main available pathway to decarbonise aviation. It can cut lifecycle emissions by up to 70% compared with conventional jet fuel. As we have heard, it is a drop-in fuel that can be used alongside existing aircraft and infrastructure. The SAF mandate passed last year starts at 2% and rises to 10% by 2030, and then to 22% in 2040. From 2040, the obligation will remain at 22% unless there is greater certainty of supply. The SAF mandate could, it is claimed, deliver up to 6.3 megatons of carbon savings each year by 2040.

We on these Benches welcome the revenue certainty mechanism. It will serve to strengthen investor confidence and unlock significant capital investment in the production facilities that need to be based here in the UK. It will allow for long-term stability and contracts through the guaranteed strike price. As the Minister said, this mechanism has been widely used in the renewables sector, and we know that it works. It will provide certainty to these suppliers. The approach is logical. The industry stands to benefit from cheaper staff, and the cost will be spread widely throughout the industry.

We recognise the UK’s approach, the long-term mandate, the proposed revenue support and the degree of certainty it will provide to help with this transition. Indeed, the UK is seen as an example of best practice, with ambitious targets and support mechanisms. Establishing a homegrown low-carbon fuel sector will bring significant jobs and benefits to the UK industry and wider society. Will the Minister update the House on the progress of ongoing negotiations with industry, running parallel with the Bill? Further, when will the Government be able to provide details on how the strike price will be set and what mechanisms will exist for adjustments? When do the Government anticipate that the first contracts will be signed?

While we welcome the Bill, we stress that SAF is only a first step. This is about not merely blending fuels but seeking alternative, more sustainable climate-friendly options for the longer term. That needs continuous investment and innovation in the next generations of technologies, including the battery/electric and hydrogen-fuelled. The Bill sets the policy framework, but crucial details are left to subsequent negotiations.

We have several key questions regarding the Bill’s ambition, scope and technical design. The SAF mandate requires 22% of jet fuel to be sustainable by 2040. This means that 78% of fuels will still be polluting just a decade before our net-zero deadline, so how will the Government achieve this target? In addition, the European Union has a higher target of 70% by 2050. What action will the Government take to bring further alignment not just with our EU partners but internationally?

We also have concerns about SAF feedstocks and the amount of cooking oil that is imported. It is important that we have a reliable domestic supply. We also note concerns about bioethanol and the closure of plants, particularly the Vivergo plant in Hull, and the impact of the US trade deal and subsidies on US ethanol. We are concerned about the potential for future bioethanol plant closures.

What consideration have the Government given to the inclusion of intermediate cover crops, such as catch and cover, as a scalable feedstock outside the HEFA cap to expand the resource base without competing with food markets? We believe that the transition to a sustainable aviation industry must be strategically linked to our existing industrial base. What actions are the Government taking to see that existing industrial plants are brought back into use, make sure that the planning system is fit for purpose and ensure that these plants can be brought online quickly?

While the Government are committed to undertaking a comprehensive assessment of these industrial sites to see that they are brought back online, transparency is paramount given the importance of public trust and accountability. The funding levy should also not place undue financial burden on air travellers, so how will the Government review the impacts to ensure that the levy does not include further burdens on those travellers? For the sake of public accountability, are the Government amenable to ensuring that the airlines report publicly on their use of SAF and the amount of it that they supply? We broadly welcome this Bill, but the Bill alone is not a sustainable long-term solution, and we call for greater monetary transparency and openness.