Research and analysis

SAF revenue certainty mechanism: cost-benefit analysis

Provides a cost-benefit analysis and dataset for the sustainable aviation fuel (SAF) revenue certainty mechanism.

From:
Department for Transport
Published
14 May 2025

Documents

PDF, 720 KB, 45 pages

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MS Excel Spreadsheet, 28 KB

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Details

The government is introducing the Sustainable Aviation Fuel Bill听2025 to provide legislative powers for the听SAF听revenue certainty mechanism.

The revenue certainty mechanism seeks to lower financing costs and increase the chances of first-of-kind SAF projects reaching successful final investment decisions. This will help attract investment into听UK听SAF听projects and increase domestic听SAF听production, which will:

  • promote growth in the aviation industry
  • contribute towards meeting the听SAF听Mandate听

Our cost-benefit analysis and dataset sets out the quantitative analysis and modelling that underpins our decisions for provisions within the bill. The analysis uses a range of assumptions to illustrate the potential economic outcomes associated with the revenue certainty mechanism.

Scenarios indicate听various听possible outcomes, risks and benefits associated with听SAF.

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Published 14 May 2025

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