The 2025 SAF Mandate: Why the UK must rise to the challenge
Aviation helps promote economic growth and cultural connection, but it faces a challenge – how can we fly more sustainably? Paired with other mechanisms such as acceptance of book-and-claim, R&D funding, grants and incentive mechanisms, policies like the UK’s Sustainable Aviation Fuel (SAF) mandate can help us get on the right track.
SAF is an important solution that is available now, commercially proven, and compatible with existing aircraft engine technology. SAF can reduce carbon emissions by up to ~80% on a lifecycle basis when compared to conventional jet fuel. However, time is not on our side. The UK SAF mandate, which officially came into effect in January, is an important policy that can help scale SAF. The mandate requires that SAF must make up at least 2% of all fuel used for flights departing the UK this year with targets rising to 10% in 2030 and 22% by 2040.
Meeting the mandate will be challenging. According to the UK Climate Change committee, SAF is expected to account for only 6% of total fuel demand by 2030, falling short of the targeted 10% and underscoring that the mandate alone will not get the UK SAF industry where it needs to be. To drive progress, the mandate mechanism needs to be paired jointly with other policy mechanisms and frameworks and focus on a wide range of technological advancements and operational efficiencies. In line with this, the International Air Transport Association (IATA) recommends a multi-faceted approach to working towards net-zero aviation by 2050. Their policy roadmap calls for a balanced focus on scaling SAF production, addressing infrastructure gaps, enhancing R&D, and driving diversification, scale-up and adoption of new technologies.
From regulation to action
The UK SAF mandate is a call to action for an industry under pressure to work towards net-zero goals. The convergence of regulatory mechanisms and incentives, expanded production capabilities, and increasing demand could signal a turning point.
Meeting SAF targets requires a concerted, industry-wide effort to continue to scale production, develop necessary infrastructure, and create supportive market conditions. The industry must work with all stakeholders including policymakers, fuel suppliers, travelers and others, to achieve this.
How businesses can lead the way
Compared to leisure travel, business travel is a highly influential and concentrated industry. On certain flights, business travellers account for just 12% of passengers but up to 75% of airline revenue, PwC found. This purchasing power, combined with the decisions business travelers make, places the industry in a unique position to help drive the scaling of SAF. In fact, this is already underway. By procuring SAF corporates can help accelerate the production and use of cleaner fuels and reduce their carbon footprint and set a higher standard for the entire aviation industry.
Corporations can fuel SAF adoption through the “book-and-claim” model, a streamlined financing and delivery mechanism that simplifies SAF distribution while ensuring accountability for corporate travelers. This model means SAF doesn’t need to be physically available at every airport. Instead, the purchased SAF is “booked” into the fuel system and can be “claimed” on any aircraft – the environmental benefits are still delivered without the additional cost and complexity of delivering fuel to a specific consumer.
Formal government acceptance of book-and-claim for SAF may help avoid additional costs and logistical complexities of importing SAF. Moreover, it may help drive corporate investment in domestic SAF production. Clear and consistent accounting and reporting standards are vital to unlocking long-term investment from corporates for the environmental attributes of SAF, as stated in a white paper by the World Economic Forum.
The journey ahead
While SAF is a crucial element in the journey towards decarbonising aviation, we need a mix of innovative policies and tools to get us there. These approaches include levers such as optimized flight routes and aircraft operations, continued progress in aircraft efficiency, carbon capture technologies, and carbon pricing. According to IATA, the route to achieving net-zero emissions by 2050 will be led by SAF, but will also require a combination of new technologies such as electric and hydrogen, infrastructure and operational efficiencies, and offsets and carbon capture solutions.
With advancements in technology and increased investment from both the private and public sectors, 2025 can be a pivotal year for SAF progress. By working together, both governments and corporations can help accelerate the transition from SAF to being a niche solution to a mainstream norm.
