Government Unveils Long-Awaited Revenue Support Scheme to Propel Sustainable Aviation Fuel Industry

The UK Government has unveiled a new support scheme for sustainable aviation fuel (SAF) producers that promises financial certainty without hitting passengers’ wallets too hard. Called the Revenue Certainty Mechanism (RCM), this policy aims to stabilise returns for SAF producers by buffering them against unpredictable market prices, effectively de-risking investment in a technology critical to aviation’s net-zero future.

At the heart of the RCM is a Guaranteed Strike Price model. Here's how it works: producers receive a fixed price per unit of SAF. If the market price dips below this threshold, the Government steps in to cover the shortfall. If it rises above, the producers pay back the surplus. It levels the playing field for emerging green fuel companies competing in a volatile market.

A variable levy will be introduced to fund this initiative, targeting aviation fuel suppliers. While the cost of this levy is expected to trickle down to passengers, the Department for Transport (Dft) has emphasised that the impact on fares will be minimal. On average, the increase to a single passenger's annual airfare will be capped at just £1.50.

But this isn’t just about fares—it’s about future-proofing air travel. Currently, SAF represents a sliver of the total jet fuel mix and remains costly. Yet, it holds enormous promise. With a lifecycle emissions reduction of up to 70%, SAF is a cornerstone of the UK’s strategy to cut aviation-related greenhouse gases.

This policy feeds directly into the UK’s SAF Mandate, which requires:

• 10% of all jet fuel on UK-departing flights to come from sustainable sources by 2030,

• rising to 22% by 2040.

To meet these goals, the country anticipates using 1.2 million tonnes of SAF annually by 2030, contributing to an expected 6.3 million tonnes CO₂e reduction in aviation emissions by 2040.

In support of this push, the Government also announced an additional £400,000 for SAF testing and certification, building on the £63 million already allocated through the Advanced Fuels Fund earlier in the year. Ensuring that SAF meets rigorous standards will be essential as adoption scales.

As part of the ongoing rollout, the DfT confirmed it will continue consulting with industry players to refine how the RCM operates, particularly around setting the strike price. The dialogue aims to strike a balance between investor confidence and taxpayer value.