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Home » £43m investment boosts UK green aviation and economic growth
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£43m investment boosts UK green aviation and economic growth

userBy userJanuary 20, 2026No Comments3 Mins Read
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The UK Government has announced a huge £43m funding injection to accelerate the development of green aviation technology.

The investment is aimed at boosting economic growth, creating high-skilled jobs and moving the aviation industry closer to its Jet Zero goal of net zero emissions by 2050.

The main focus of the £43m funding is to support research and development projects that tackle the environmental impact of flight.

This includes advances in zero-emission aircraft and the production of low-carbon fuels. A key area of ​​research will also look at ways to remove the climate-warming water vapor traces produced by aircraft. This is an important but often overlooked part of aviation’s climate impact.

Promoting economic growth and job creation

Officials stressed that this public investment is aimed at unlocking millions of pounds of private capital.

The production of low-carbon fuels alone is predicted to contribute up to £5bn to the UK economy by 2050.

By supporting British businesses and universities, the Government aims to establish the UK as a world leader in green aviation and support thousands of highly skilled jobs in technology development and scientific research.

Supporting sustainable airport expansion

The investment comes as the government progresses plans to expand major airports including Heathrow, Gatwick and Luton.

Transport Secretary Heidi Alexander said: “We are supporting British businesses by strengthening green aviation. Our £43 million investment will deliver the cutting-edge technology of the future, grow our economy and support high-skilled jobs as part of our mission to deliver national regeneration.”

“Zero-emission aircraft, hydrogen fuel and other emerging technologies are essential to reducing the climate impact of flight, enabling us to deliver on our airport expansion plans to increase connectivity and grow our economy.”

Strengthening global leadership and regulation

As part of this initiative, the Civil Aviation Authority will receive support to develop the regulatory framework necessary for the safe and widespread use of hydrogen fuel.

In addition, a portion of the funding will be allocated to support international cooperation, particularly the tracking and use of sustainable fuels in regions such as Africa and the Caribbean.

This international initiative aims to ensure a level playing field for UK airlines while driving the decarbonisation of global aviation.

Accelerate SAF production to strengthen green aviation

To further support the sector, the Sustainable Aviation Fuels Bill, which comes into force later this year, will bring long-term certainty to the SAF market by guaranteeing set prices to UK producers, helping to meet the UK’s climate change targets.

This will be underpinned by an additional £63 million to accelerate the construction of new SAF production plants and £2.3 billion through the Aerospace Technology Institute program over the next 10 years to support cutting-edge aerospace innovation and thousands of highly skilled jobs.

Tim Alderslade, CEO of British Airways, explained: “Today’s investment in zero- and low-emissions technology plays a key role in delivering a sustainable future for the UK aviation industry, and with the launch of the Sustainable Aviation Fuels Duty last year and the forthcoming legislation of the SAF Revenue Assurance Mechanism, that process is well underway.

“The Jet Zero Taskforce’s continued work to bring together government, industry and experts to drive progress is a key part of our collective efforts to ensure net zero continues to become a reality in our sector.”


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