Strive for highest sustainability standards in fuels, says AEF

16th April, 2026

The government has just concluded a consultation into the design of contracts to be awarded to fuel producers under the new Revenue Certainty Mechanism. The government support package is intended to be the final step in helping producers of fuels from waste (2nd generation) and synthetic fuels (3rd generation) get final investment decisions for their production facilities.

The consultation asked important questions about how the most sustainable alternative fuel pathways can be encouraged, including whether a different guaranteed strike price should be applied to fuels which offer close to a 100% carbon intensity reduction. The strike price will be paid for through a levy on fuel suppliers, and is designed to help the market discover a competitive price for new fuel pathways. If successful, it should help the development of 2nd generation fuels and e-fuels which will form part of the SAF mandate requirements post-2030.

How do we guarantee investment into the most sustainable alternative aviation fuels?

AEF also argued in its response that key steps need to be taken by government to ensure investment decisions are final and shielded from policy changes; otherwise, investors will be unlikely to commit if there is potential for a policy shift. Our suggestions include making no changes to the rules forbidding the inclusion of crop-based biofuels in the SAF mandate, and also includes a specific ask to hold a second round of contract auctioning specifically targeted at e-fuel producers.

You can read our full response here: