Aviation: Alternative Fuels

Treasury written question – answered on 5th September 2019.

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Photo of Gareth Thomas Gareth Thomas Party Chair, Co-operative Party

To ask the Chancellor of the Exchequer, pursuant to the Answer of 22 July 2019 to Question 277102 on Aviation: Alternative Fuels, if he will make an assessment of the potential merits of introducing tax (a) incentives and (b) disincentives to accelerate the switch to alternative aviation fuels.

Photo of Simon Clarke Simon Clarke The Exchequer Secretary

In line with international conventions to which the UK is party, the government does not charge fuel duty on commercial aviation fuel, therefore alternative aviation fuels cannot currently be supported through the tax system.

Biofuels are supported outside of the tax system through a market-based certificate trading mechanism called the Renewable Transport Fuel Obligation (RTFO), which has a sharp environmental focus.

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