Sustainable Aviation Fuel Bill

Olly Glover Excerpts

Report stage
Wednesday 15th October 2025 Commons Chamber

[Olly Glover (Didcot and Wantage) (LD)]

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

[Madam Deputy Speaker (Judith Cummins)]

With this it will be convenient to discuss the following:

New clause 2—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.”

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.

New clause 3—Increasing greenhouse gas saving potential of sustainable aviation fuel—

“(1) The Secretary of State must, within six months of the day on which this Act is passed, publish and lay before Parliament a report which sets out a strategy for increasing the greenhouse gas emission saving resulting from the promotion of sustainable aviation fuel production in the United Kingdom.

(2) The report required under subsection (1) must include, but not be limited to—

(a) proposals for incentivising the research and development of sustainable aviation fuels that maximise greenhouse gas emission savings;

(b) an assessment of, and recommendations for increases to, the minimum required greenhouse gas emission reduction in order for a sustainable aviation fuel to be issued a SAF certificate;

(c) an assessment of, and recommendations for increases to, minimum ratios for renewable content in blended sustainable aviation fuels, for the purpose of more quickly reducing greenhouse gas emissions.

(3) Twelve months after the publication of the report required under subsection (1) and within every twelve months thereafter, the Secretary of State must publish a further report which—

(a) sets out progress against the strategy; and

(b) makes any necessary adjustments to the strategy as a result of developments in the sustainable aviation fuel industry.

(4) In this section, “SAF certificate” has the meaning given in article 2 of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.”

New clause 4—Reporting of Sustainable Aviation Fuel targets—

“(1) The Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024 is amended as set out in this section.

(2) In paragraph (3), after sub-paragraph (5) insert—

“(5A) The Secretary of State may vary the table in paragraph (7) in order to increase the obligation in any given year.”

(3) In sub-paragraph 33(2)(c) leave out “, and”

(4) After sub-paragraph 33(2)(d), insert “and

(e) consider whether the SAF obligation set out in the table in sub-paragraph 3(7) of this Order should be increased for any given year, and if so, set out steps the Secretary of State will take to effect such an increase.”

(5) After paragraph 33(2) insert—

“(2A) A copy of a report published under this article must—

(a) be laid before Parliament; and

(b) be sent to the relevant select committee of each House of Parliament.

(2B) In sub-paragraph 33(2A)(b), “the relevant select committee” is—

(a) in the House of Commons, the Transport Committee, provided that—

(i) if the name of that Committee is changed, reference is instead taken to mean the new name, and

(ii) if the functions of that Committee with respect to Sustainable Aviation Fuel become functions of a different committee of the House of Commons, reference is instead taken to the committee by whom the functions are then exercisable;

(b) in the House of Lords, any such Committee as the Chairman of Committees may appoint.””

New clause 5—Air travel providers’ use of sustainable aviation fuel: reporting requirements—

“(1) Within six months of the passing of this Act, the Secretary of State must, by regulations, establish a requirement for air travel providers to report annually on their use of sustainable aviation fuel.

(2) Regulations made under subsection (1) must specify—

(a) that the annual reports include figures for sustainable aviation fuel usage which can be easily understood, including expressed as—

(i) an absolute volume, and

(ii) proportion of all aviation fuel used; and

(b) that the annual reports are accessible to members of the public including by being made available on their websites.

(3) Any regulations made under subsection (1) must be made under the negative procedure.”

New clause 6—Economic Impact of the Act—

“(1) The Secretary of State must lay before Parliament a report on the economic impact of the Act.

(2) This report must include, but shall not be limited to—

(a) the impact on the UK’s aviation fuel industry;

(b) the impact on the UK’s sustainable aviation fuel supply including the impact on all small, medium and large producers and potential importers of sustainable aviation fuel;

(c) the impact on international and domestic tourism in the UK; and

(d) the impact on passenger air fares.

(3) The report required by subsection (1) must be laid before Parliament within one year of this Act being passed.”

New clause 7—Targets for power-to-liquid aviation fuel usage—

“(1) The Secretary of State must, within 12 months of the passing of this Act, conduct a review of the power-to-liquid aviation fuel targets as set out in section (3) of the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024.

(2) The review carried out under subsection (1) must only consider—

(a) the effectiveness of the existing power-to-liquid aviation fuel target and;

(b) whether the target should be increased.

(3) In carrying out the review under subsection (1) the Secretary of State must consult with—

(a) producers of power-to-liquid aviation fuel;

(b) airlines;

(c) experts in sustainable aviation fuel production; and

(d) any other persons the Secretary of State deems appropriate.

(4) A report setting out the findings of the review must be published and laid before both Houses of Parliament.”

Government amendment 1.

Amendment 10, in clause 1, page 2, line 4, at end insert—

“(4A) The terms under subsection (4)(c) must include a requirement for the producer to consider the longevity of supply and relative environmental impact when prioritising between organic and synthetic derived sustainable aviation fuel solutions.”

Government amendments 2 to 5.

Amendment 11, in clause 6, page 4, line 19, leave out from “pay” to end of line 22 and insert

“to the designated counterparty in each month a standardised levy on their relevant disposals of aviation fuel products in the preceding month that must be publicised on invoices expressed in pence per standard litre.”

This amendment requires the Secretary of State to set a standardised levy rate payable by all suppliers of aviation fuel, that must be publicised by suppliers of aviation fuel on invoices to their customers.

Government amendment 6.

Amendment 8, in clause 12, page 7, line 6, at end insert—

“(3) A direction given under subsection (1) must include a requirement for the designated counterparty to report on—

(a) the impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the proceeding 12 month period;

(b) a projection of the expected impact of any revenue certainty contract on the fluctuation of the average price to consumers of an airfare over the following five year period.

(4) A report under paragraph (a) must be made within one year of the date of Royal Assent to this Act and annually thereafter.

(5) The Secretary of State must lay a report made under paragraph 3(a) before Parliament.”

This amendment would require the designated counterparty to report on the impact that the revenue certainty mechanism has on passenger air fares.

Amendment 9, page 7, line 6, at end insert—

“(3) A direction given under subsection (1) must include a requirement for the designated counterparty, where a venue certainty contract would result in a new production facility, to prioritise entering into any such contracts with producers that will use UK owned technologies in that facility.”

This amendment would require the designated counterparty to prioritise UK-based technology when entering contracts.

Amendment 12, page 7, line 6, at end insert—

“(3) Within twelve months of the passing of this Act, the Secretary of State must make a direction under subsection (1) which requires the designated counter party to prioritise entering at least one revenue certainty contract with a producer of Power to Liquid sustainable aviation fuel if doing so will allow for at least one plant to reach Final Investment Decision by 31 December 2026.”

Government amendment 7.

[Olly Glover]

Global demand for aviation continues to grow; it is projected to be two or three times bigger by 2050. In 2024, there was a record rate of increase in carbon emissions, according to the World Meteorological Organisation, and there was a new daily record for global aviation emissions in July 2025. Nearly half of all the carbon emissions to date from aviation have occurred since 2000.

Sustainable aviation fuel has been talked up for years as the solution, yet there has been a poor track record of unambitious targets not being matched by delivery. For example, in 2010, Boeing announced the target that 1% of aviation fuel globally should come from SAF by 2015, and in 2019, the International Air Transport Association set out hopes of reaching 2% by 2025, but today, globally, the figure is just 0.3%. The UK’s published figure this year of 1.29% is better, but it nevertheless shows how far we have to go.

The Conservative Government promised back in 2022 to have five commercial UK SAF plants operational by 2025, but there is still only one. It is therefore right of the Government to have introduced legislation to attempt to make sure that the latest set of SAF targets move from fantasy to realistic, credible and deliverable plans, although these will ultimately need to transition us towards the development of truly zero-carbon flight technology. I thank my hon. Friends the Members for Wimbledon (Mr Kohler), and for Sutton and Cheam (Luke Taylor), for their contribution to the Bill Committee, and I hope that Members from across the House will consider the Liberal Democrat amendments.

New clauses 1, 2 and 3 all increase the chances of the intention behind the Bill being realised. New clause 1 requires the Secretary of State to assess and report on the potential for disused oil refineries and similar industrial sites to be used for the production of sustainable aviation fuel. New clause 2 requires the Secretary of State to assess the measures being taken to encourage the supply of materials for production of sustainable aviation fuel, and has a focus on bioethanol plants. That is especially important in the context of the expected closure of the Vivergo bioethanol plant near Hull, following the Government’s decision not to provide it with financial support.

New clause 3 requires the Secretary of State to report to Parliament on the development of a strategy for analysing and maximising the potential of sustainable aviation fuels to contribute to reductions in greenhouse gas emissions.

I also speak in support of two new clauses tabled by my hon. Friend the Member for West Dorset (Edward Morello), both of which would improve the Bill by providing greater rigour and scrutiny of progress towards sustainable aviation fuel targets. New clause 4 would give the Secretary of State the power to increase SAF production obligations where necessary, and to ensure that reports on progress are laid before Parliament and relevant Select Committees. New clause 5 would introduce requirements for air travel providers to report on their use of sustainable aviation fuel, and to provide annual reports to the public via their websites. Collectively, new clauses 1 to 5 would strengthen the Bill and increase its credibility when it comes to SAF production and reporting on progress.

The Government’s SAF mandate requires just 22% of aviation fuel to be sustainable by 2040. That compares poorly with the European Union’s target of 32% by 2040. It is hard to square an objective of net zero aviation by 2050 with just 22% of fuel being sustainable a decade earlier, unless we put in place measures alongside SAF to cut emissions and make climate-friendly flight a reality. We urge the Government to clarify their plans for achieving their targets, particularly as hope for SAF progress is being used to state that Heathrow and Gatwick expansion are compatible with our greenhouse gas emissions reduction targets.

[John Milne (Horsham) (LD)]

As my hon. Friend says, sustainable aviation fuels are being used by the Government to justify major airport expansions. One such expansion would be at Gatwick, adjacent to my constituency. A target of 10% SAF by 2030 is optimistic in the extreme, as the Climate Change Committee said. If the Government’s own advisers do not believe in this target, why should we?

[Olly Glover]

My hon. Friend makes a good point about what the Climate Change Committee has said. That is why I hope the Government will consider these Liberal Democrat amendments, which are intended to strengthen the Bill, so that its provisions become reality this time, and contrast with the many missed targets in the past on sustainable aviation fuel.

Making aviation genuinely sustainable will require the Government to go beyond securing investment in SAF, and to ensure that in the longer term, the SAF measures complement, rather than detract from, investment in zero-carbon flight technology. I hope that the House will support our amendments, so that our country makes a bigger and more rapid contribution to decarbonising aviation.

[Brian Leishman (Alloa and Grangemouth) (Ind)]

This year, Petroineos—that is, Jim Ratcliffe’s Ineos and PetroChina from the Chinese state—closed the Grangemouth oil refinery. Closure was not about some passionate quest for net zero. Closure happened because private capital and a foreign Government owned vital energy infrastructure, and because corporate profits are more important than community good to the billionaire Jim Ratcliffes of this world. There were 435 jobs lost at the refinery, and hundreds more lost in the shared services that are housed on site; 2,822 jobs were lost in the wider supply chain. That is mass de-industrialisation.

But closure is not just about job losses. The exodus of talented, skilled workers is awful, but closure also means that the site is no longer a positive destination for many local young people leaving school. We have seen an end to a generational employer in my community. The economic consequences are also absolutely enormous for local Grangemouth businesses, which relied on the custom of refinery workers and their families. Once again, I want to give credit to all the small local businesses that have kept town centres going in recent years. The pressure of running a small business when austerity and the cost of living crisis have hammered people’s disposable incomes can be all-consuming and incredibly stressful. I should know; I tried it for some years.

The economic turmoil of stopping refining is also a national issue, because the refinery was worth more than £400 million per annum to the Scottish economy. Politicians often talk about black holes. Well, that is a sizeable, industrial-shaped black hole to fill. I do not doubt that the Government understand the magnitude of how important it is to re-industrialise communities like mine in Grangemouth. The other day, I read my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane), who has done so much work to bring this Bill to the House, describing in Hansard the situation that he grew up in on the east side of Manchester, which lost its chemical and mining industries. He said:

“We are still getting over that in my great city.”––[Official Report, Sustainable Aviation Fuel Public Bill Committee, 17 July 2025; c. 108.]

He undoubtedly understands the social consequences of industry finishing up. No community can afford this continued spiral of industrial decline.

To go back to my original point, we have for decades been an economy controlled by private capital, multinational corporations and foreign Governments whose policy has been to make things elsewhere, and to sell here. Have the last four decades not shown that the country’s complete reliance on private capital means profits over people? We must adopt a new industrial strategy that meets the needs of working people and their communities by securing at least some form of public ownership of the new industries that we will need—that is a mainstream political view.

The Government must learn lessons to stop history repeating itself, and to prevent workers and communities having every last ounce of work extracted from them before they are discarded on a corporate whim. For the Government to create and benefit economically from the necessary green industrial revolution, which we need for our economy and for the planet, some form of Government ownership of future industries is necessary. Surely, that view should be at the heart of any Labour Government.

If the Government want to put their faith in private capital to mould Britain’s new industrial future, I urge them to think again. They need to be more active in the process of creating Grangemouth’s industrial future. They need to seize the initiative and invest in workers, communities industry and Scottish manufacturing. Producing sustainable aviation fuel is an enormous objective—one that we have committed to—and sites like Grangemouth are ideally placed for it. The infrastructure needs some degree of conversion and upgrade, of course, but it is there. The workforce and expertise are there. My local community needs to be re-industrialised. The Labour Government have ambitious SAF targets to meet, but, more importantly, they also have obligations to communities in our forgotten industrial heartlands.

--- Later in debate ---

[Madam Deputy Speaker (Caroline Nokes)]

That brings us to the Front-Bench contributions. I call the Liberal Democrat spokesperson.

[Olly Glover]

This has been an informative debate on all the new clauses. From a procedural point of view, we are happy not to push new clause 1 to a Division.

[Greg Smith (Mid Buckinghamshire) (Con)]

To begin, I draw Members’ attention to my entry in the Register of Members’ Financial Interests with regard to the synthetic road fuel provided to me for a constituency surgery tour last year. That is not strictly relevant to sustainable aviation fuel, but I want to be entirely transparent about it, as I have been throughout this Bill’s passage.

May I also welcome the new Minister to his place? He has a big pair of shoes to fill, and I equally want to commend the hon. Member for Wythenshawe and Sale East (Mike Kane)—we did not always see entirely eye to eye—for the effort and attention he put in to getting this Bill through the House and to his other duties in the House.

I begin with new clause 6, which requires the Secretary of State to lay before Parliament a report on the economic impact of the Act once it is in force. This amendment goes to the nub of what is important. Does the Bill enable growth or stifle it? Does it support our world-class aviation industry or go against it? More importantly, does it enable our constituents to do what they have always done and fly, be that on holiday, on business or to visit family and friends overseas, or does it hinder them in doing that; and does it hinder our businesses in bringing goods in and out of the country by air?

New clause 6 forces the Secretary of State to confront the realities of the Bill on multiple fronts. It covers the impact on the UK’s aviation fuel industry and the UK’s sustainable aviation fuel supply, and the impact on small, medium and large producers and potential importers of sustainable aviation fuel.

--- Later in debate ---

[Madam Deputy Speaker (Caroline Nokes)]

Mr Glover, is it your pleasure that new clause 1 be withdrawn?

[Olly Glover]

I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 5

Air travel providers’ use of sustainable aviation fuel: reporting requirements

(1) Within six months of the passing of this Act, the Secretary of State must, by regulations, establish a requirement for air travel providers to report annually on their use of sustainable aviation fuel.

(2) Regulations made under subsection (1) must specify—

(a) that the annual reports include figures for sustainable aviation fuel usage which can be easily understood, including expressed as—

(i) an absolute volume, and

(ii) proportion of all aviation fuel used; and

(b) that the annual reports are accessible to members of the public including by being made available on their websites.

(3) Any regulations made under subsection (1) must be made under the negative procedure.”—(Olly Glover.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.