Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether she plans to review Net Zero transport spending priorities.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The Department for Transport’s budget for day-to-day spending until 2028-2029, and until 2029-2030 for capital investment was set in June’s Spending Review. Delivering greener, safer and healthier transport to support the Government’s commitment to reach net zero by 2050 while driving economic growth is a Departmental priority that we will deliver through a range of spend and non-spend measures. We are accelerating the transformation of existing industries, such as our automotive and maritime sectors, and supporting the growth of nascent industries here in the UK, such as sustainable aviation fuel.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what estimate she has made of the cost per tonne of carbon dioxide reduction achieved through the Revenue Certainty Mechanism compared to other Sustainable Aviation Fuel pathways; and what assessment she has made of the value for money of this policy for taxpayers.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The Sustainable Aviation Fuel (SAF) Mandate is the UK’s key policy to decarbonise jet fuel, and could deliver up to 6.3 megatonnes of carbon savings in 2040. The SAF Revenue Certainty Mechanism (RCM) will support investment in UK SAF production and delivery of SAF Mandate targets. The relevant greenhouse gas savings have been accounted for in the SAF Mandate’s Cost-Benefit Analysis.
The Government is committed to delivering value for money. The RCM will be funded via a variable levy on aviation fuel suppliers. The Government will actively monitor and control scheme costs, including through the setting of strike prices and by controlling the scale and number of contracts awarded, and it has set out the potential costs and benefits that may arise from the RCM scheme in the Cost-Benefit Analysis, published in May 2025.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what estimate she has made of the number of UK-based sustainable aviation fuel production facilities that have commenced construction since July 2022; and how many jobs have been created through those production facilities.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
Through the Advanced Fuels Fund (AFF) the government is providing funding to support first-of-a-kind commercial and demonstration-scale SAF projects in the UK. The Government is also introducing a revenue certainty mechanism to support UK-based SAF projects secure successful final investment decisions. The Department estimates that low carbon fuels production can support up to 15,000 jobs in the UK by 2050.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to Clauses 6, 12 and 13 of the Sustainable Aviation Fuel Bill, what estimate she has made of the total cost to (a) passengers, (b) taxpayers, and (c) fuel suppliers arising from revenue certainty contracts and associated levy payments; and what steps she is taking to ensure that this support does not (i) create long-term subsidy dependence and (ii) disproportionately benefit overseas producers.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The Government set out the potential costs and benefits arising from the RCM scheme in the Cost-Benefit Analysis, published in May 2025, including potential costs for passengers and fuel suppliers. The scheme will be funded via a variable levy placed on aviation fuel suppliers, not by the taxpayer.
The RCM contracts will only be signed with UK-based SAF producers. These contracts will have a defined term length to ensure a clear end date to the subsidy and also sets a cap on the support for the sales of SAF to control the scale of the scheme. In addition, clause 1 (7) of the SAF Bill provides an end date, 10 years from the day on which the Act is passed, to new contracts being entered into.
We expect UK SAF production to be internationally competitive, with the RCM playing a key role to attracting investment for UK producers in a nascent market that is using innovative technologies. Whilst we are designing contracts, there is careful consideration towards how the volumes are sold under the RCM, including who are the offtakers and the end user’s location.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what estimate she has made of the potential impact of (a) the Sustainable Aviation Fuel Bill and (b) the proposed Revenue Certainty Mechanism on average passenger air fares by 2030 and 2035; and whether passengers will be informed of any additional levies or costs arising from the scheme.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The Sustainable Aviation Fuel (SAF) Bill provides the legislative basis for the SAF Revenue Certainty Mechanism (RCM). The RCM will help producers get the investment they need to ramp up the production of SAF in the UK.
The Government published a Cost Benefit Analysis for the SAF RCM in May 2025. We expect the RCM to cause ticket prices to increase or decrease by up to £1.50 on an average ticket per year, which is expected to be within the range of normal year to year changes in air fares.
The Government has confirmed that the RCM will be funded via a variable levy on aviation fuel suppliers and will look to design the levy in a way that ensures transparency of costs. The Government will actively monitor and control scheme costs including through the setting of strike prices and by controlling the scale and number of contracts awarded.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment her Department has made of the potential impact of the sustainable aviation fuel mandate on (a) airline operating costs and (b) the average price of a passenger ticket in each financial year to 2030-31.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
I refer the Right Honourable Member to the answer given to PQ UIN 78707 on 20 October 2025. The Cost Benefit Analysis for the SAF Mandate sets out our assessment of the potential costs and benefits of the policy.
Asked by: Neil Coyle (Labour - Bermondsey and Old Southwark)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps her Department is taking to ensure the supply of sustainable aviation fuel increases to match demand.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The Department for Transport is taking a comprehensive approach to ensure the supply of sustainable aviation fuel (SAF) increases to match demand. In January 2025, the Government introduced the SAF Mandate, obligating jet fuel suppliers to blend increasing volumes of SAF into the UK aviation fuel mix, with targets rising from 2% in 2025 to 10% in 2030 and 22% in 2040. These targets were set following detailed analysis and engagement with industry stakeholders. To ensure the SAF Mandate reflects the latest technological and commercial developments, regular review points are built into the legislation, allowing targets to be revisited if required. The first formal review will be carried out before 2030.
To support supply, £63 million in grant funding has been allocated through the Advanced Fuels Fund for the current year, with continued support for SAF production through to 2029/30. The UK SAF Clearing House provides advice and support to SAF producers navigating the fuel testing landscape, helping to remove barriers to new fuels coming to market.
In addition, the Government has introduced legislation for a Revenue Certainty Mechanism to increase investor confidence and unlock investment in UK SAF production.
Asked by: Greg Smith (Conservative - Mid Buckinghamshire)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps her Department is taking to support the uptake of low carbon fuels in the logistics sector.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The Department for Transport is actively supporting the uptake of low carbon fuels across the logistics sector through a range of measures. The Renewable Transport Fuel Obligation (RTFO) remains a key policy tool, which has delivered 55 MtCO2e of greenhouse gas (GHG) savings since its inception in 2008, that’s about two thirds of transport’s GHG savings between 2008 and 2022.
In addition, the Department is advancing the production and use of sustainable aviation fuel (SAF) through the introduction of a SAF Mandate, the Advanced Fuels Fund to support UK producers, and the development of a revenue certainty mechanism to unlock private investment in domestic projects.
Recognising that achieving net zero in logistics will also require a transition to zero emission vehicles, we are accelerating the deployment of zero emission heavy goods vehicles (HGVs) and the necessary refuelling and charging infrastructure through the Zero Emission HGV and Infrastructure Demonstrator programme.
The logistics sector plays a vital role in both economic growth and the UK’s net zero ambitions, and the Department remains committed to working closely with industry to support this transition.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to her Department press release entitled Boost for British green aviation fuel production to support jobs and lift off emerging industry, published on 14 May 2025, how much of the (a) £400,000 and (b) £60 million will be allocated to (i) UK-headquartered companies and (ii) companies headquartered overseas; and how many jobs have been (A) created and (B) safeguarded, broken down by company receiving funding.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The press release concerns £63 million which was made available for the third competition window of the Advanced Fuels Fund (AFF). The AFF aims to grow the UK supply of sustainable aviation fuel (SAF) by supporting first-of-a-kind production plants achieve commercial scale. The £400,000 is related to grant funding made available this financial year for the UK SAF Clearing House. The Clearing House provides services to potential UK SAF producers to help them navigate the testing and approval requirements for non-fossil-based jet fuel.
In respect of the AFF funding, £63 million has been allocated across 17 UK projects for this financial year. On points (i) and (ii), this funding can only be allocated to companies with a UK registered office for UK based projects.
In respect of Clearing House grant funding, the assessment process to allocate the £400,000 is still ongoing, however all recipients will have to be either a UK registered company or charity with a UK footprint.
Low carbon fuels production can support up to 15,000 jobs in the UK by 2050. In respect of job creation, information that is provided by AFF bidders and our Clearing House is commercially sensitive.
Asked by: Richard Holden (Conservative - Basildon and Billericay)
Question to the Department for Transport:
To ask the Secretary of State for Transport, with reference to her Department’s press release entitled Greener flights ahead for UK aviation, published on 1 January 2025, what estimate her Department has made of the additional cost per passenger flight of the requirement for airlines to use 10% sustainable aviation fuel by 2030.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The press release relates to the sustainable aviation fuel (SAF) mandate which came into force on 1 January. The Department published a Cost Benefit Analysis for the SAF Mandate, alongside the Renewable Transport Fuel Obligations (Sustainable Aviation Fuel) Order 2024 SI No.1187 which introduced the mandate. That Cost Benefit Analysis sets out our analysis of the potential costs and benefits of the policy. Any impact on ticket prices is expected to be within the range of normal year to year changes in air fares.
We continually monitor the market to update our assumptions where necessary. The Mandate has been designed to protect against excessive costs with a built-in review process so the Government can take action if necessary.