Sustainable Aviation Fuel Bill

Third Reading

Motion

Moved by

That the Bill do now pass.

My Lords, I am grateful for the scrutiny, due diligence and expertise of noble Lords during the debates on this legislation. This Bill is a huge step forward. By unlocking the potential of sustainable aviation fuel production in the UK, we can significantly reduce aviation’s greenhouse gas emissions, grow the economy and support green jobs. Your Lordships’ input as this Bill has progressed through this House has meant that it leaves this place in better shape.

I thank the noble Lord, Lord Moylan, whose engagement and scrutiny of this legislation has been welcome, particularly on HEFA. I am sorry about the acronyms—this Bill is particularly full of them. The noble Baroness, Lady Pidgeon, and the noble Earl, Lord Russell, have been exemplary in their engagement on the Bill. I thank them for their continued scrutiny, and in particular for making sure that transparency is at the forefront of the Bill. I also thank the noble Lord, Lord Grayling, whose amendment to the Energy Act paved the way for the first consultation on a revenue certainty mechanism for SAF. His expertise on this subject has been invaluable.

The Bill will now ensure the Secretary of State can enter into revenue certainty contracts only where the supported SAF is produced at a facility in the UK, which was always the Government’s intention. In addition, I thank the noble Lord, Lord Ravensdale, for the expertise and clarity he has brought to our discussions on power to liquid and feedstocks more generally. Finally, I extend my personal thanks to all the officials who have supported me, including the Bill team, legal colleagues, the drafting team in Parliamentary Counsel and others who have been involved in its successful passage.

I look forward to seeing this Bill pass. If we are to create the jobs and attract the business investment Britain needs, we must grow aviation and grow it sustainably. This Bill does just that. I beg to move.

My Lords, before I say a few words, I would like to declare my interest, as listed in the register, as non-executive chair of RVL Aviation. I thank the Minister and the Government for continuing the sustainable aviation fuel regime that we set out, the revenue certainty mechanism and the investment in UK industrial production of sustainable aviation fuel. I thank him for listening carefully to the points made by colleagues in Committee, and for bringing forward appropriate amendments on Report. Finally, I thank him for responding to a number of points I made by committing to keeping the House informed as government policy develops in this area. I am very pleased to support the Bill as it makes its way on to the statute book.

I welcome the passage of this Bill. It will result in a slight increase in costs as far as the training sector of aviation is concerned, but that is a small price to pay for the overall benefits.

My Lords, I remind noble Lords of my interest as a chief engineer working for AtkinsRéalis. I will briefly thank the Minister and his team for their time in all our meetings and for their collaborative approach during the passage of the Bill. In particular, the accommodation we reached on the exclusion of hydroprocessed esters and fatty acids fuels—HEFA—from revenue certainty mechanism support, and the helpful response of the Minister to the intervention from the noble Lord, Lord Harper, on a Statement in Parliament if that were to be changed, meets the intent of my amendments and that of the noble Lord, Lord Moylan. This will provide important clarity for industry and focus support where it is most needed in de-risking the more immature technologies.

It has been welcome to see rare cross-party support for a Bill in the energy space, and I hope we can carry forward that collaborative spirit on future energy Bills in the next Session.

My Lords, as we reach the final stage of this Bill, I say a huge thank you to the Minister and his team of officials. They have been incredibly open to discussion and have genuinely listened to our concerns throughout this process. I hope the Minister agrees with me that our discussions on reporting and monitoring will help to ensure that the impacts of the legislation are understood thoroughly as it is implemented, including by government, the sector and other stakeholders. This level of engagement has been vital in making sure that it is practical and ready to work in the real world. This legislation will provide the clarity and confidence the industry needs to finally get the wheels turning on sustainable aviation fuel.

I thank Adam Bull in our Whips’ Office for his support and hard work behind the scenes. I thank my noble friend Lord Russell for his immense work and support on this Bill. Ultimately, our goal is to see the aviation industry embrace a cleaner future. This Bill is an important step forward, making sustainable aviation fuel a common reality rather than a distant goal and ensuring that we can stay connected while significantly reducing the sector’s environmental impact. I look forward to seeing this legislation put into practice and seeing a much higher proportion of sustainable fuel in the sector in the years to come.

My Lords, despite the applause from all sides of the Chamber for this Bill, I am afraid it remains a very troubling piece of legislation. It has been described by the noble Baroness, Lady Pidgeon, effectively as a piece of net-zero legislation, but, as I have insisted throughout its passage, this is not net- zero legislation. The net-zero effect in relation to sustainable aviation fuel was achieved by the SAF mandate put in place 15 or 16 months ago, which requires airlines to mix in an increasing amount of HEFA, and, increasingly, other fuels, over time. That is what will make the contribution to net zero.

This Bill is in fact a piece of industrial policy. It is based on the premise that somehow, because we will consume SAF, we need to be a world leader in producing it. Despite my pressing the Government repeatedly, the Minister has not been able to offer any reasons for thinking that we have a comparative advantage in this field and that we should dedicate resources to it. The Bill’s means of doing this is by piling subsidy upon subsidy. It really is, as I say, very troubling.

Through this Bill, we are now guaranteeing a floor price for SAF producers, and the risk is being transferred away from them. That risk is being transferred down the chain to airlines and their passengers. We on our side sought a commitment from the Government to be transparent about the likely impact on fares. Instead, they, along with the Liberal Democrats, chose to shield the travelling public from the dangerous knowledge of what they will actually pay for this policy over the years ahead. Much of what matters to make this Bill work is in fact saved for secondary legislation and indeed for commercially confidential negotiations between officials on the one hand and the shark-toothed lawyers of the international investor sector on the other. It is a recipe for success—I am sure the Minister would want to say that.

Despite all that, I cannot fail to thank the Minister for his now reliable courtesy and helpfulness in the passage of this legislation, in working with the official Opposition and other noble Lords, and in his responsiveness. I also thank his officials, who have been very helpful and have responded rapidly and efficiently when we have had questions for them. I am grateful to all those people for doing that.

I thank all noble Lords and I commend the Bill to the House.

Bill passed and returned to the Commons with amendments.