Sustainable Aviation Fuel Bill

Lord Moylan Excerpts

Tuesday 24th February 2026 Lords Chamber

[Baroness Pidgeon (LD)]

My Lords, as we reach the final stage of this Bill, I say a huge thank you to the Minister and his team of officials. They have been incredibly open to discussion and have genuinely listened to our concerns throughout this process. I hope the Minister agrees with me that our discussions on reporting and monitoring will help to ensure that the impacts of the legislation are understood thoroughly as it is implemented, including by government, the sector and other stakeholders. This level of engagement has been vital in making sure that it is practical and ready to work in the real world. This legislation will provide the clarity and confidence the industry needs to finally get the wheels turning on sustainable aviation fuel.

I thank Adam Bull in our Whips’ Office for his support and hard work behind the scenes. I thank my noble friend Lord Russell for his immense work and support on this Bill. Ultimately, our goal is to see the aviation industry embrace a cleaner future. This Bill is an important step forward, making sustainable aviation fuel a common reality rather than a distant goal and ensuring that we can stay connected while significantly reducing the sector’s environmental impact. I look forward to seeing this legislation put into practice and seeing a much higher proportion of sustainable fuel in the sector in the years to come.

[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.