Sustainable Aviation Fuel Bill (Second sitting)

Debate between Julia Buckley and Greg Smith
Greg Smith Portrait Greg Smith
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Q In respect of procurement of SAF to be available at the airport, will the Bill safeguard domestic fuel security? I ask that question largely through the lens of the challenge to Heathrow if fuel were suddenly to be unavailable in the United Kingdom for you to supply to the airlines on site. Is there any way that the Bill could be improved to shore up the domestic security position?

Matt Gorman: It is a good question. We welcome the Bill. As SAF is so important, the sector and Heathrow have advocated over a number of years both the mandate, which was passed as legislation at the beginning of the year, and the revenue certainty mechanism. It has benefits for energy security, green jobs, growth and decarbonisation. That has been one of the drivers for the sector to support it. The decarbonisation benefits are clear. On jobs and growth, earlier witnesses talked about the industry studies showing up to £10 billion of GVA and 60,000 jobs by 2050.

Energy security is one of those reasons. As SAF is a key part of the industry transition plan around the world, there will be global trading of SAF. Kerosene is a global commodity today; SAF will be in future. We think we will import some. However, the sector is supportive of domestic production, which is why we are so supportive of the Bill. I should say that Heathrow is not directly in the fuel value chain—we do not buy, make or sell fuel—but we are very involved in the debate, because it is so significant. All the fuel producers and investors we talk to say that the revenue certainty mechanism will help to unlock investment decisions in the UK. I am not sure whether the Bill could be improved to do that even more. I do not have a view on that.

Julia Buckley Portrait Julia Buckley (Shrewsbury) (Lab)
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Q I have two questions. The first relates to your role on the board of Sustainable Aviation. You referred earlier to the key part the Bill plays in decarbonisation and reaching net zero. On behalf of that board, from the wider sector perspective, do you think that it is possible to reach net zero by 2050 without the Bill?

Matt Gorman: That is a good question. We have not studied it in those terms. We have published a plan to get to net zero, and there are four key tools in the toolkit. SAF is one; zero-emission and hydrogen-powered aircraft are others. More efficient aircraft and more efficient operations deliver a huge amount, and there are greenhouse gas removals for anything that we cannot cut within the sector.

SAF is important. We have always said that a combination of a mandate requiring production and incentives to stimulate investment in the UK is important. We are delighted to see the Government progressing with the Bill: we would like it to be passed as soon as possible, and we would like the consultation on the implementation to move forward. I would simply say that SAF is very important and that the Bill is very important to driving UK production.