Industry must be responsible for funding sustainable aviation fuel

10th April, 2025

In March, AEF responded to a Department for Transport consultation on the sustainable aviation fuel (SAF) revenue certainty mechanism (RCM). The RCM is being introduced to reduce the risk of SAF projects to encourage investment and development of a UK SAF industry. The government has confirmed their intention that this mechanism will be funded by industry, with this consultation looking at the exact format of this industry funding. 

The RCM will take the form of a guaranteed strike price arrangement whereby a set price will be determined that SAF producers will receive when they sell their SAF product (a strike price). Producers then sell SAF at the market price and if this market price is below the strike price then producers are reimbursed with the difference. Similarly, if the market price is above the strike price then producers pay the difference back into the system. 

This consultation proposes to place a levy on fuel suppliers that will cover any costs of the RCM (e.g. reimbursement payments that are due to fuel producers and costs of operating the scheme).   

AEF agrees with the DfT proposal as it supports the polluter pays principle and is consistent with other schemes where industry is funding support of low carbon technologies. We have previously commented alongside 20 other civil society organisations on why this scheme has to be industry funded and not use any public money. Our full response to this consultation is available here and below.