Written Statement to the Senedd: Publication of the UK ETS Authority consultation on sustainable aviation fuels

The UK Emissions Trading Scheme (UK ETS) Authority (comprising of the Welsh Government, the UK Government, the Scottish Government, and the Northern Ireland Executive) has today published the UK Emissions Trading Scheme (ETS) Treatment of Sustainable Aviation Fuel (SAF) Consultation.

The UK ETS currently incentivises the use of SAF by requiring airlines to purchase fewer carbon allowances when they reduce emissions, which SAF helps achieve. The UK ETS uses the Renewable Transport Fuel Obligation (RTFO) for the sustainability criteria for fuel to be considered as SAF. However, in the UK the RTFO has been succeeded by the UK Government SAF Mandate, which came into force on 1 January 2025.

The consultation asks stakeholders for their views on changing the sustainability criteria for a fuel to be considered as SAF under the UK ETS and how it should be rewarded.

This consultation will be followed by an Authority Response, which will be published prior to legislation being laid that will enact any changes resulting from the consultation. The Senedd, along with other UK Parliaments, will have the opportunity to scrutinise plans once they are finalised.

Through the UK ETS, we must encourage technologies that will help Wales on its journey to Net Zero. This consultation is key to understand how the UK ETS can support the uptake of SAF by rewarding its use.

I have written to the Chairs of the Climate Change, Environment, and Infrastructure Committee and the Legislation, Justice, and Constitution Committee to inform them.