Credit: Shell Aviation
New aviation manifesto from Conservative Environment Network urges government to help accelerate development of UK sustainable aviation fuel industry
The UK is at danger of missing its target to deliver a net zero emission aviation industry unless it rapidly accelerates the development of a domestic sustainable aviation fuel (SAF) industry.
That is the central conclusion of a new new manifesto from the Conservative Environment Network (CEN) titled Taking Flight: A policy route to achieving jet zero, which argues the government should reject calls from campaigners to curtail demand for flights and instead redouble efforts to develop green aviation fuels and technologies.
Specifically, the report calls on the government to launch a contracts for difference (CfD) scheme which the CEN argued will prove "crucial" to growing the UK's SAF industry and driving down the cost of low carbon fuels. The report calculates that CfDs that provide developers with a guaranteed long term price for the SAF they provide could cut an estimated 3.6 million tonnes of carbon emissions a year by 2035, as well as providing the economy with a £1bn annual boost and creating 6,500 jobs.
According to the manifesto, a price support mechanism is needed to compete with tax breaks in the USA and the EU's SAF mandate, which are being used to attract investors in new SAF facilities. Currently, the UK SAF industry is only on track to meet half of the government's target for at least 10 per cent of aviation fuel to be sustainable by 2030, the CEN warned.
"Telling people they can't go on foreign holidays or visit family abroad would undermine support for net zero," said Robert Courts, a former Aviation Minister and a member of the CEN caucus of Tory MPs. "We need to look to innovation, technology and competition to solve this problem, not restrictions to ground people for good. This manifesto shows how we can replicate the Contracts for Difference scheme, which successfully scaled up British offshore wind, to shape the future of flying and ensure the UK is home to this net zero industry."
CEN argued that a CfD regime for SAFs would give investors confidence to develop sustainable fuel plants in the UK and scale production by guaranteeing a fixed price set by auction, while competitive auctions for the contracts would help drive costs down over time.
The group is calling on ministers to use airlines' tax receipts from a strengthened UK Emissions Trading Scheme (ETS) to fund the CfD scheme, which it argues would both pay for the scheme while avoiding the creation of a new tax on the sector.
If this funding is insufficient, the CEN argued that ministers could look to expand existing aviation taxes to cover ETS-exempt long-haul flights.
Other recommendations in the manifesto designed to "spur innovation" in support of the government's Jet Zero strategy include plans for a £1m competition for the first zero-emission domestic flight in the UK. CEN suggested the scheme could replicate the transatlantic competition's success, which saw Virgin Atlantic recently secure funding for the first net zero flight from London to New York which is scheduled to take place later this year.
The manifesto has also proposed that the government make all public service obligation routes zero emission by 2030 to help maintain connectivity across the UK. The mandate would mean already subsidised flights, such as those between Scottish islands and Glasgow, Cardiff and Anglesey, and Derry and London Southend, would have to operate zero emission flights, creating a market for new electric and hydrogen aviation technologies while also driving investment in regional airports, CEN said.
If the mandate proves successful, the manifesto suggested the government could then consider a target for all domestic flights to be zero emission.
The CEN said that 28 Conservative MPs, MSPs, and peers have signed the manifesto, including former Transport Secretary Chris Grayling, former Aviation Ministers Robert Courts and Baroness Sugg, and Scottish Conservative Net Zero Spokesman Liam Kerr.
CEN's director Sam Hall said that aviation must play a "full part" in the net zero transition and take responsibility for its impact on the climate, but added that the focus should be on deploying innovative technologies, rather than "counterproductive" attempts to reduce demand.
"The government has adopted the right strategy, but must now firm up their plans and accelerate emissions reductions," he added.
"The global race for new net zero industries, including sustainable aviation fuels, has begun. With the policies in this manifesto, the UK has the potential to be a world leader and secure the sector's future."
However, the report is likely to face criticism from some environmental campaigners who have long questioned the scalability, cost, and technical feasibility of emerging SAF and zero emission aviation technologies. Green groups have argued that the absence of proven low and zero emission aviation technologies means governments will have to look to curb demand for aviation to help deliver on climate goals.
