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Campaign highlight: Logistics UK writes to the Department of Transport in response to SAF consultation
The Department for Transport (DfT) recently consulted on revenue certainty options to support a sustainable aviation fuels (SAF) industry in the UK. The aim of implementing a revenue certainty mechanism is to reduce the risks of uncertain revenues for emerging SAF plants.
This helps to attract investment into UK SAF projects which in turn increases domestic SAF production and contributes towards meeting future demands.
Logistics UK engaged with members and in response to the consultation wrote a letter voicing their support for the introduction of a revenue certainty mechanism in the UK, to help scale up SAF production and increase availability.
The business group has been calling for regulatory changes and investment in the domestic production of SAF to increase availability and reduce costs, supporting the sector's transition to decarbonise. By integrating SAF into the fuel supply chain and adopting higher SAF blends, the aviation sector can make significant progress towards the commitment to reach net zero emissions by 2050.
A key challenge for emerging SAF projects is the uncertainty of revenue streams and therefore Logistics UK is calling on government to implement a revenue certainty mechanism in order to reduce financial risks and attract investment. Furthermore, members are keen to see a mechanism delivered earlier than Q4 2026, given the SAF mandate will be introduced from 2025.
We are calling on the government to publish a Low Carbon Fuels Strategy and develop measures to incentivise the adoption and production of low carbon and sustainable fuels across all transport modes, capitalising on their ability to reduce emissions from internal combustion and aircraft engines by up to 80%.
This should include formalising a SAF mandate in legislation, implementing a government backed revenue certainty mechanism and reducing the cost differential between SAF and kerosene, with similar measures for low carbon fuels for road, rail and maritime.
Logistics UK will continue to call for increased SAF roll-out across the industry and will keep members up to date with relevant developments.
Published On: 11/07/2024 15:15:00
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