Energy Transition, Agriculture, Refined Products, Carbon, Emissions, Biofuels, Renewables, Jet Fuel
March 23, 2026
UK seeks views on treatment of SAF in compliance carbon market
Editor:
HIGHLIGHTS
Consultation examines eligibility criteria for SAF
Mandate targets 22% SAF use by 2040
Policy alignment could simplify airline compliance costs
The UK government launched a consultation March 23 on how sustainable aviation fuel should be treated under the country's emissions trading system, seeking to align its carbon policy with the country's sustainable aviation fuel mandate.
The UK Emissions Trading System Authority is examining whether to expand the types of SAF eligible for emissions-reduction claims beyond biofuels and whether to harmonize eligibility criteria with the SAF mandate's sustainability standards.
At the heart of the consultation is how the UK ETS should account for SAF use by airlines. The authority is considering three approaches: maintaining the current zero-rating system, recognizing SAF in proportion to its actual emissions savings, or treating it the same as fossil kerosene without special recognition.
How SAF is treated under the emissions trading system will affect both airlines' compliance costs and the economic incentives for producing and using renewable aviation fuels.
The UK mandate secures demand for SAF by obligating suppliers to increase its share in the overall UK aviation fuel mix and incentivizes SAF supply through the award of tradeable certificates with a cash value.
The SAF mandate started on Jan. 1, 2025, at 2% of total UK jet fuel demand, increases linearly to 10% in 2030 and then to 22% in 2040.
From 2040, the obligation will remain at 22% of total UK jet fuel demand until there is greater certainty regarding SAF supply. The SAF Mandate could deliver up to 6.3 million mt of carbon savings per year by 2040.
The review also questions whether the UK ETS should maintain its current emissions saving threshold for eligible SAF or adopt the SAF mandate benchmark. Aligning the two frameworks could simplify compliance for airlines and fuel suppliers operating under both schemes, though it may require changes to existing policy and legislation.
The consultation closes on June 15.
Platts, part of S&P Global Energy, assessed the UK carbon price at GBP37.99/metric tons of CO2 equivalent on March 23, up 3% from March 20 but down from a January peak of GBP72.89/mtCO2e.
