A group of more than 60 MPs have called on the government to create a price stability mechanism to incentivise production of Sustainable Aviation Fuels (SAFs).
The MPs, mainly Conservatives, have signed an amendment to the Energy Bill currently going through Parliament calling on ministers to introduce financial support for UK SAF production.
The amendment, tabled by former transport secretary Chris Grayling, urges the creation of a price stability mechanism which would see the government underwrite the price of SAFs as it already does nuclear energy production and offshore wind power.
The aviation industry has repeatedly called on the government to guarantee a minimum price for SAF to incentivise fuel manufacturers to develop SAF production facilities in the UK.
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Heathrow chief executive John Holland-Kaye described such a mechanism as “hugely important”.
The Future of Aviation Group of MPs, chaired by Crawley MP Henry Smith and supported by the aviation and travel industries, has backed the SAF amendment.
However, the government-appointed Climate Change Committee has cast doubt on the confidence of the industry and government in SAF as pathway towards carbon reduction, describing it as “a nascent technology”.
The recently departed chair of the committee, Lord Deben, described SAF as “unproven”.
An American Express Global Business Travel spokesman said: “It’s now widely accepted that SAF is the most viable way to significantly reduce air travel carbon emissions.
“However, government investment and regulatory certainty is fundamental to scaling demand and accelerating growth in this fledgling sector.”
The Energy Bill is in the report stage in the Commons ahead of a third and final reading.
It includes provisions on energy production and security, energy market regulation and licensing, arrangements for carbon capture and storage and hydrogen production, new energy technologies, offshore energy and nuclear power.
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