A package of measures to decarbonise the transport industry was unveiled by the UK Government on 30 March.
The measures include the production of sustainable aviation fuel as well as the shift to electric vehicles.
Aviation Minister Baroness Vere of Norbiton said: “Today’s renewed support for sustainable aviation fuel is another step towards making Jet Zero a reality.
“Developing a UK SAF industry will not only put the country at the heart of green aviation worldwide, but also boost investment, jobs and fuel security in the UK.”
Manufacturers will interact with a credit-based trading system which allows them to bank credits when they exceed annual targets, for future use or to trade with manufacturers who have not reached targets.
Those who do not meet annual targets could receive fines up to of up to £18,000 for every vehicle the target was missed by.
From 30 March, the UK Government opened the second application round of the £165m Advanced Fuels Fund. This is a step towards the UK having at least five commercial scale UK sustainable aviation fuel (SAF) plants in construction by 2025.
A second consultation on the SAF mandate has been launched regarding how the mandate will deliver carbon savings and provide incentives to SAF producers.
In addition, it has been confirmed that the University of Sheffield will deliver the UK Clearing House to support the testing and certification of new SAF.
Transport Secretary Mark Harper said: “Transport is one of the most important sectors for achieving net zero by 2050 and so we must accelerate our efforts to decarbonise how people get from A to B while growing our economy and supporting thousands of green jobs.
“From expanding our charging network to boosting the production of cleaner aviation fuel, today’s announcement is a great stride forwards, offering people more choice on how to stay connected while delivering the carbon reductions needed to achieve net zero.”