Sustainable Aviation Fuel Bill (Third sitting)

Luke Taylor Excerpts

Committee stage
Thursday 17th July 2025 Public Bill Committees

[Luke Taylor (Sutton and Cheam) (LD)]

I rise very briefly to speak in favour of new clause 2, which I have tabled. Generally, the intent was to provide a check-in and reporting mechanism for the success of the Bill. We are all in favour of its objectives; I think that it is the care, and the attention to understanding how it is progressing, that is needed. I therefore ask the Minister what measures will be taken by the Government to achieve the aims of the new clause. Will that be through the jet zero taskforce, or will there be another mechanism for us to understand and monitor the progress and success of these measures? I would be interested to hear his response on how that might be done.

[Mike Kane]

I thank hon. Members for their contributions. Let me start by addressing the point made by the Opposition spokesperson, the hon. Member for Mid Buckinghamshire, about the overview and ambition of this legislation. We are the first legislature in the world to attempt to create this revenue certainty mechanism. The SAF mandate was a key commitment in our election manifesto last July, and the eyes of the world, as some of our witnesses said the other day, are on us doing this work, because people are following our lead. I therefore want to bake in the competitive advantage of being ahead of the game in this area, and being a world leader in this area too.

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[Mike Kane]

The clause will enable the Secretary of State to provide financial assistance to the counterparty to ensure that it can always meet its liabilities under the revenue certainty contracts. The intention is that the counterparty will be funded through the levy payments from suppliers of aviation fuel in the UK. The power is a back-up to assure SAF producers and investors that the counterparty will always be able to meet its obligations.

Question put and agreed to.

Clause 14 accordingly ordered to stand part of the Bill.

New Clause 1

Black bin waste

“(1) The Secretary of State must, within two months of the passing of this Act, publish and lay before Parliament, guidance on the opportunities available for local authorities in England to support the production of Sustainable Aviation Fuel through the use of black bin waste.

(2) Within six months of the publication of guidance under subsection (1) the Secretary of State may, by regulation, require local authorities in England to prioritise the creation of sustainable fuel in the disposal of their black bin waste unless the local authority deems it to be significantly financially disadvantageous to do so.

(3) Regulations under subsection (2) must define the meaning of ‘significantly financially disadvantageous’ for the purposes of this section.

(4) Regulations made under subsection (2) are subject to the affirmative resolution procedure.”—(Luke Taylor.)

Brought up, and read the First time.

[Luke Taylor]

I beg to move, That the clause be read a Second time.

I move the new clause simply to discuss some of the interesting issues that it raises. In the evidence session on Tuesday, we heard about the opportunities for the diversion of residual municipal waste into the production of second-generation SAF. We have heard from many in Committee this morning about the challenges to do with the incineration of waste and the impact of that on our communities, but a lot of us maintain, or agree, that that is the least worst option. The opportunity here is that there is a slightly less worse option for the disposal of that remaining municipal waste.

New clause 1 aims to give the Minister a bit of a nudge towards examining the opportunities and how the waste hierarchy could reflect how that waste is potentially reused. There are also broader questions not only about the residual waste but about plastics recycling, such as whether there is an opportunity to incorporate changes in the way that plastics recycling is prioritised, and whether it is a suitable feedstuff for SAF. New clause 1 is an opportunity to raise some of those questions, and for the Minister to give some assurances and responses on them.

[Mike Kane]

I think the hon. Member for Sutton and Cheam has a point, in that the public will be interested in how this is made. Advanced-waste SAF, including SAF made from non-recyclable municipal solid waste, is a key part of the SAF industry. We have backed and invested in this kind of SAF in our grant funding programme, the advanced fuels fund, as I mentioned earlier, and we are backing it again in this Bill, providing the revenue certainty that advanced waste-based SAF producers need to attract investment and scale up fast.

The hon. Member’s new clause, however, is not what the SAF producers need, and would place more burdens on our local authorities. There is nothing preventing local authorities from using their municipal solid waste for SAF production if they believe that it provides the best value for money and environmental outcomes. We heard in evidence the other day, when waste actually has a value to it, is it waste any more?

However, municipal waste often needs to be pre-treated and processed before it is used in SAF production. This often means that SAF producers look to buy their waste from processors, rather than from local authorities. We do not believe that access to municipal solid waste is currently a significant barrier for UK SAF production, and it is likely that discussions on the availability of municipal solid waste would happen once a project is close to taking a financial investment decision. I ask the hon. Member to withdraw his new clause.

[Luke Taylor]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 3

Review of the supply of bioethanol for use in sustainable aviation fuel production

“(1) The Secretary of State must, within six months of the passing of this Act, publish and lay before Parliament a report reviewing measures to encourage the supply of materials for Sustainable Aviation Fuel.

(2) The report under subsection (1) must include—

(a) an assessment of the impact of the closure of bioethanol plants on the ability to encourage overall increases in sustainable aviation fuel production;

(b) options for mitigating any adverse impacts on the availability of supply of sustainable aviation fuel by the closure of bioethanol plants;

(c) recommendations for any necessary Government action to promote a stable supply of bioethanol for Sustainable Aviation Fuel.”—(Mr Kohler.)

This new clause would require the Secretary of State to lay before Parliament a report outlining measures to encourage the supply of materials for SAFs, including considering the impact of bioethanol plant closures on encouragement to increase supply.

Brought up, and read the First time.

[Mr Kohler]

I beg to move, That the clause be read a Second time.

New clause 3 would require the Secretary of State to publish a report within six months of the Act’s passing, reviewing how we can better secure the supply of bioethanol for use in sustainable aviation fuel production.

The success of the UK’s sustainable aviation fuel ambitions will rely not only on bold targets and optimistic projections, but on the reliable availability of the resources needed for manufacturing. Bioethanol will be a resource that can be part of the manufacturing process for SAF, and help support a low-carbon industry in the UK, yet while the Government continue to laud their commitment to green aviation, they have stood by while domestic bioethanol production is at risk from Donald Trump’s bully boy tactics.

Since the signing of the UK-US trade deal, the owners of two UK bioethanol plants based in Hull and Teesside have threatened to close the sites as the trade agreement fundamentally undermines their business position. This Government have given US ethanol producers a 1.4 billion litre tariff-free quota—equivalent to the UK’s entire annual demand for the product—and completely undercut the industry, making the UK vulnerable to the whims of, to put it at its mildest, the mercurial Trump Administration.

The new clause would require the Government to assess the impact of plant closures on SAF production potential, set out options to mitigate supply risks and, crucially, recommend the policy steps needed to promote a stable domestic supply of bioethanol. We cannot afford to leave this to chance, or to the good will of a US President who, as we all know, simply cannot be trusted. If the Government are serious about scaling up SAF production, they must ensure that the raw materials are available. That means a proper strategy to support and stabilise the UK’s bioethanol sector.

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[Greg Smith]

I understand the argument that the hon. Gentleman is making with new clause 4, but I would argue that it is unnecessary; the whole point of the Bill is to decarbonise aviation. As the Minister said himself, and as I hope the Committee will accept, the Bill was conceived and finds its origins under the last Government, and it was then carried through by this Government, so it is something that we can rightly be proud of on both sides of the House. As we are leading the world on this issue, I am not sure that new clause 4 is necessary.

However, new clause 5 is more interesting, because it goes to the very crux of the debate we had earlier on the various technologies that can produce sustainable aviation fuel in the United Kingdom. It goes without saying that, while all forms of sustainable aviation fuel—as we know it at the moment—are greener than their fossil fuel equivalent, there is significant variation in the greenhouse gas and carbon emissions between using blends or 100% sustainable aviation fuel in an aircraft. The merits of new clause 5 go to the absolute centre of the debate on which of those technologies, or which of those great innovations, can deliver the closest to net zero over the coming years and decades, if not net zero itself.

If new clause 5 were baked into the Bill, and ultimately the Act, it would be interesting to see how it would enable us judge among those different technologies. I have talked in the House many times about the importance of whole-system analysis, which is an analysis not just of the effect while the jet engines are turning and the planes are in the sky, but of the whole impact on greenhouse gas and carbon emissions of manufacturing the fuel and what is done with the waste product afterwards, particularly carbon. New clause 5 would go to the heart of discovering that.

One of the things that we have seen in evidence, and that we have talked before about in the Chamber, is the effect when certain fuels are derived, in part, from atmospheric carbon capture—the carbon emitted post combustion, which comes out of the tailpipe of the aircraft, is the same amount of carbon that is recaptured from the atmosphere to make the next lot of fuel. New clause 5 has the merit of enabling us to command the Government to review that, which is why His Majesty’s Official Opposition have sympathy with it.

[Luke Taylor]

I rise briefly to press this question to the Minister: if the Government oppose the new clauses, how are they are going to incorporate their intent? I think they probably agree with the intent but are probably just resistant to their being outlined as they are. I ask the Minister to go into as much detail as he can on whether that will happen through the jet zero taskforce or something else.

[Mike Kane]

I always enjoy listening to the rasping oration of the hon. Member for Wimbledon.

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[Mike Kane]

A latter day Hilaire Belloc, in my humble opinion. However, on this occasion, the hon. Member for Wimbledon will no doubt know that I disagree with him.

Committee members will be aware that SAF is considered to be essential in achieving net zero for aviation medium and long-haul flights, which account for about 80% of CO₂ emissions from aviation. The Government update Parliament and the public regularly on the progress towards net zero targets across the economy, including by laying in Parliament an annual statement of emissions and annual publications of official greenhouse gas emissions statistics. They include granular detail on emissions from all economic sectors, including domestic and international aviation. Furthermore, the Climate Change Committee reports to Parliament each year on progress in reducing emissions, including for transport, and there is a statutory duty on the Government to respond to the points that it raises.

To address the points raised by the hon. Member for Sutton and Cheam, we continue to publish statistics on the volume of SAF supplied each year in the UK and under the SAF mandate. Together, these measures provide a clear picture of progress towards decarbonising aviation, so I would ask the hon. Member for Wimbledon to withdraw his new clause.

[Luke Taylor]

The Minister has spoken about the tonnage from SAF, but the real question is whether statistics and information will be available on the sources of each of those SAF types, so that we can examine how each of the various streams of SAF production are contributing and also understand the net carbon benefit. He has talked about the carbon production from the burning, but we need to see the detail of the SAF streams to understand the benefits and the progress towards decarbonisation in more detail. Is that something the Government might consider?

[Mike Kane]

I do not have the answer in front of me, but I commit to providing the hon. Gentleman with an answer in due course. I thought the point he was making was about whether we are being open and transparent across all sectors in the UK in showing how we are decarbonising the aviation sector. [Interruption.] I do now have the answer. Who knew? The miracle of mobile telephony—it will save writing my signature to him with the electronic pen. The SAF mandate and statistics include details of feedstocks and the origin of the SAF. I hope that answers his question, but if he wants more information—we are all keen on this—I would ask him to please keep in touch.

New clause 5, entitled “Increasing greenhouse gas saving potential of sustainable aviation fuel”, was tabled by the hon. Member for Wimbledon. The SAF mandate is the UK’s key policy to decarbonise jet fuel. It does that by securing demand for SAF, by obligating the supply of an increasing amount of SAF in the overall UK aviation fuel mix. The SAF mandate rewards SAF in proportion to the greenhouse gas savings its achieves. That will encourage SAF developers to improve continuously on their greenhouse gas savings. To ensure that the SAF mandate reflects the latest technological and commercial developments, there will be continuous monitoring of trends and the impacts of the mandate. Formal reviews will be conducted and published at least every five years, with a formal review in 2030. The formal reviews will already include certain elements of the new clause, namely the minimum greenhouse gas savings threshold and the minimum targets for supply of SAF. Following the review, there will be an opportunity to update the legislation as needed.