Research Briefing
Sustainable Aviation Fuel Bill: HL Bill 138 of 2024-26
The Sustainable Aviation Fuel Bill is a government bill. It was introduced in the House of Lords on 20 October 2025 and is due to receive its second reading on 20 November 2025. The bill would introduce a revenue certainty mechanism to support the production of sustainable aviation fuel (SAF) in the UK. It would do this by designating a counterparty (a company wholly owned by the government) to engage in contracts with SAF producers to guarantee the price of the sale of eligible SAF. The government has said that SAF is one of the most effective ways to reduce greenhouse gas emissions from aviation, as SAF is a ‘drop-in fuel’ that does not require modifications to existing aircraft. Current supply of SAF is limited. The government has claimed the bill would support SAF production in the UK by providing revenue certainty and thereby reducing risk to investors in SAF production facilities. There was broad cross-party support for the bill during its House of Commons stages.