The U.K. Department for Transport on Oct. 16 confirmed it will implement a revenue certainty mechanism for sustainable aviation fuel (SAF) in the form of an aviation fuel supplier levy. The agency is currently seeking public comments regarding implementation details.
The revenue certainty scheme aims to reduce financial risks for emerging SAF producers and complements the U.K.’s SAF mandate, which came into force Jan. 1, 2025. By law, SAF must now account for at least 2% of all jet fuel in flights taking off from the U.K. The mandate is set to expand to 10% in 2030 and 22% in 2040.
The Department for Transport in March 2025 opened a public consultation on the proposed scheme in March 2025. Following that public comment period, the agency confirmed the SAF revenue certainty mechanism will be funded by industry via a variable levy on aviation fuel suppliers, which will be based on their market share of fossil-based aviation turbine fuel. Parties that are subject to an obligation under the SAF mandate will be liable to pay a levy to ensure reduced administrative burden.
The Department for Transport is now seeking public comments regarding the specific design features of the aviation fuel supplier levy. This includes how it could be calculated; the length, frequency and sequence of when the levy is calculated, collected and paid; the use forecasts to provide certainty for industry; and actions to address over-collection, surpluses and under-collection of the levy.
The public consultation on the levy design is open through Jan. 8, 2026. Additional information is available on the U.K. Department for Transport website.
