Sarah Olney

New clause 2, tabled by my hon. Friend the Member for Didcot and Wantage (Olly Glover), would require the Government to publish a report within six months of securing the supply of bioethanol for sustainable aviation fuel production. The Government have repeatedly cited the increased use of SAF as the answer to questions about how the UK will meet our net zero targets while expanding multiple airports in London. It was wishful thinking nine months ago, but that argument has now dissolved almost into impossibility. Not only did the summer proposal submitted by Heathrow Airport Holdings for a third runway include a request to add nearly 300,000 flights to our airspace each year, but the concerns regarding the production of SAF have become more prominent. That concern has grown following China’s implementation of its own SAF mandate, which will result in it using more of its production domestically. That will undoubtedly cause a challenge for the UK given that over 90% of our current SAF is imported from China. The challenges to the UK’s ability to produce and import SAF were underscored by the Climate Change Committee’s recent report, which estimated that only 17% of the UK’s aviation industry will be using SAF by 2040. That is 5% lower than the Government’s own mandated targets, and 8% below the EU’s target. The estimate does not even take into account the additional flights that would come in and out of the UK as a result of the proposed airport expansions. In fact, in 2024 only 10% of bioethanol certified as renewable and consumed in the UK was produced domestically. That was down from 17% in 2023 and 15% in 2022—a concerning trend and one that the Government must report back on. In addition, the UK-US trade deal presents a threat to the UK’s domestic bioethanol production, as the agreement removed tariffs on US ethanol and replaced it with a zero-tariff quota of 1.4 billion litres. The US bioethanol industry is heavily subsidised and its companies will be able to undercut UK bioethanol industries. Vivergo Fuels’ plant in Hull, which had the largest capacity of any UK bioethanol producer, has already closed, with the managing director citing the US-UK trade deal as a significant factor that contributed to the site’s closure.