The UK government has released an open consultation into how the development of sustainable aviation fuels (SAF) should be funded.
Its position is that the so-called revenue certainty mechanism (RCM) should be funded by industry and that the preferred approach is to introduce a levy on suppliers of jet fuel.
The proposal is to use a levy to cover the cost of payments to SAF producers and cost of administering the scheme. This is consistent with existing schemes for renewable electricity and hydrogen.
But for the aviation industry, which works on small profit margins, that presents a number of challenges – and a dilemma for airlines as whether to pass on costs in higher ticket prices or absorb them.
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