The RCM is expected to be the final key policy tool designed to kickstart the SAF industry in the UK by providing financial stability for producers through a Guaranteed Strike Price model. The plan has been described as ‘a bold step to a greener aviation future’ though questions remain around the best use case for the limited available volumes of sustainable liquid fuels.
Similar to schemes used in the renewable energy sector, it ensures producers receive a fixed price for SAF, regardless of market fluctuations. If the market price drops below the agreed level, the government covers the difference; if it rises above, the producer repays the excess. This reduces investment risk to stimulate investment and unlock funding for UK-based SAF production facilities.
Accelerating the domestic SAF industry’s growth is essential to meeting the UK’s SAF Mandate, which requires 2% of aviation fuel to be SAF from 2025, rising to 10% by 2030, and 22% by 2040.
Funding
The RCM will be funded through a levy on aviation fuel suppliers. This approach follows the “polluter pays” principle, ensuring those contributing most to emissions bear the cost of the transition. For passengers, the impact is expected to be minimal – with an estimated annual cost increase of just £1.50 per customer.
The government plans to launch the RCM in 2026, in line with its goal of having at least five commercial SAF plants under construction by 2025 – a key milestone in the SAF mandate.
As opposed to a subsidy, the RCM corrects market imbalances, helping clean fuels compete with fossil fuels. Alongside the RCM, the government is continuing support through the Advanced Fuels Fund, which has allocated £63 million for SAF project development in 2025/26.
By firming up its support for the RCM, the government is sending a clear signal of its position that renewable liquid fuels, in the form of SAF, are vital to aviation decarbonisation.
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