The UK government has confirmed that the revenue certainty mechanism for sustainable aviation fuels (SAF) will be funded through a levy on aviation fuel suppliers.
How SAF will be funded has been a sticking point in establishing the nascent market’s framework.
The Department for Transport believes it can keep ticket price change fluctuations to marginal levels of £1.50 a year on average. It will “continue to engage with industry” on pricing details.
The government also announced £400,000 of additional funding for producers so that new clean fuels “can get to market quicker”. It follows £63m of funding made available through the Advanced Fuels Fund this year.
