ADS ZAS0018

ADS Response to Environmental Audit Committee Call for Evidence

 

Introduction

  1. ADS is the trade association for the UK’s aerospace, defence, security, and space industries. ADS has more than 1,100 member companies across all four sectors, with over 95% of these companies identified as Small and Medium Size Enterprises (SMEs). The UK is a world leader in the supply of aerospace, defence, security and space products and services. From technology and exports to apprenticeships and investment, our sectors are vital to the UK’s growth – generating £79 billion turnover a year in the UK, including £45 billion in exports, and supporting one million jobs.

 

Executive Summary

  1. Aerospace is committed to achieving net zero aviation in the UK by 2050, with interim decarbonisation targets of at least 15% by 2030 and 40% by 2040. The industry has a clear and credible plan to achieve this through:

 

2.1.             Continued development of state-of-the-art aircraft and engine designs in a relentless pursuit of near-term fuel efficiency improvement and CO2 reduction.

2.2.             Increased production and use of sustainable aviation fuels (SAF) to deliver significant emission reductions over both the short and long-term.

2.3.             Development of a radical and disruptive third generation new aircraft and propulsion technologies to move into the age of zero-emission flight, exploring the power of hydrogen and electricity.

 

  1. There is broad consensus in the aerospace industry around the main pathways and an appreciation that there is no single solution to reach net zero by 2050. The industry will achieve the targets set through a combination of efficiency improvements, new technologies and market-based measures, backed up by a solid policy framework provided by Government.

 

  1. Net zero by 2050 is an opportunity for the UK and for the aerospace industry to generate investment across the country, generate new jobs and position the UK as a world leader in sustainable aerospace.

 

  1. ADS supports the written evidence provided by Sustainable Aviation to the EAC’s call for evidence, and reiterates the points made in that submission. ADS’ response to the EAC highlights specific areas where action is critical to ensure that net zero is reached by 2050 and the opportunities presented are taken advantage of:

 

5.1.             Investment in the Aerospace Technology Institute (ATI).

5.2.             Scaling up of support for Sustainable Aviation Fuel (SAF).

5.3.             Support for the decarbonisation of supply chains.

5.4.             Leading on the international stage.

 

  1. Action is needed now to ensure that Jet Zero is reached by 2050. The consensus within industry and Government represents an unparalleled opportunity to act together and ensure that the right conditions are in place to encourage innovation and unleash UK aerospace. Now is the best time to act; delaying will increase the total cost of Jet Zero. If the UK doesn’t act now, it risks being left behind in comparison to international competitors.

 

  1. ADS are also providing a submission to the DfT’s Jet Zero consultation, which goes into more detail on many of the points provided in our response to the EAC.

 

Investment in the Aerospace Technology Institute (ATI)

 

  1. To achieve Jet Zero and make rapid progress on the ambitions that the Government has set out, industry is proposing a step-change in investment through the Aerospace Technology Institute (ATI). An investment of £3.8bn to 2030 by Government, alongside co-investment from the industry, would unlock further industry investment of up to £27 billion by 2050 to industrialise Jet Zero technologies in the UK:

 

8.1.             Further investment through the ATI would remove over 600m tonnes of carbon through UK developed technology by 2050, representing around 20 percent of total global aviation emissions.

8.2.             Realising Jet Zero ambitions will level up opportunities and create an additional 120,000 high-value green jobs in the UK aerospace sector by 2050.

 

  1. The ATI will play a significant role in furthering the progress towards zero emission flight, and the Government should reiterate its support for the ATI in the upcoming spending review.

 

  1. The development of next generation aircraft is a critical step on the path to net zero by 2050. Ensuring the timely and effective development of the technology required for zero emission flight requires investment as soon as possible.

 

  1. The ATI’s FlyZero project must be continued beyond its initial one-year plan, in order to build on the work already done and the incumbent momentum of significant R&D investment, as well as other projects funded through the ATI, such as GKN’s H2GEAR and ZeroAvia’s HyFlyer.

 

Scaling up of support for Sustainable Aviation Fuels (SAF)

  1. SAF can significantly reduce net aviation carbon emissions from today. They replace current fossil fuels and require no significant changes to aircraft or at airports. Moreover, they will continue to play a significant role in reducing emissions well into the future.

 

  1. Initiatives such as Green Fuels, Green Skies are welcome, but must be a part of a wider long-term SAF roadmap and ambition. While the SAF opportunity is substantial, any roadmap for SAF will require significant investment in the transportation, blending, producing and certification of SAF. This therefore means that any roadmap must include sufficient focus on the infrastructure to distribute SAF to ensure ambitious scaling of SAF production and usage is realised.

 

  1. A clear policy framework from the UK Government would encourage further private investment, and this should be implemented through the SAF mandate alongside a Contracts for Difference (CfD) scheme or similar price stability mechanism to encourage SAF investment.

 

  1. The UK Government should additionally support a UK clearing house to reduce the barriers to entry for new SAF to be produced, scaled, and put to market domestically.

 

Support for the decarbonisation of supply chains

 

  1. Jet Zero is an opportunity to create a world leading manufacturing value chain with sustainable enterprises in UK aerospace, and the industry will work with UK suppliers to encourage investment in development of sustainable technologies and processes. The Government should support these actions to enable UK suppliers to transition to a highly productive and low carbon future through:

 

16.1.         Extending the programme timeline for SC21 Competitiveness & Growth (C&G) programme by two years.

 

16.2.         Working with industry to help identify and signpost appropriate industry supplier development and government business support programmes.

 

16.3.         Working with industry to explore options for scaling up cross-sector manufacturing digitisation programmes.

 

16.4.         Supporting continued innovation in the supply chain through a long-term commitment to the National Aerospace Technology Exploitation Programme (NATEP).

 

Leading on the international stage

 

  1. The UK is home to a world-leading aerospace industry, providing a base for many of the largest and most innovative aerospace companies in the world. Jet Zero represents an opportunity to boost investments, jobs and output across the country, ensuring a deeper economic base that makes Global Britain stronger on the world stage.

 

  1. Aviation is inherently global, and so this position of strength should be leveraged on the international stage to ensure the UK plays an active role in developing sustainable regulatory and policy frameworks.

 

  1. The International Civil Aviation Organization’s (ICAO’s) 2022 General Assembly represents an opportunity to demonstrate UK leadership in sustainable issues; the Government should build on COP26 to demonstrate global leadership in sustainable aerospace and aviation, bringing other nations with us on the journey to net zero.

 

  1. The UK should drive greater coordination and pace in setting policy on a global basis, encouraging the development of global standards for new sustainable innovations in a timely manner, and fostering international cooperation of aerospace R&D. At ICAO, this should include encouraging ICAO to consider net zero in their Long Term Aspirational Goal (LTAG), as well as aligning objectives with the Intergovernmental Panel on Climate Change.

 

  1. The COP26 Presidency represents a once-in-a-generation opportunity to demonstrate the UK’s commitment to net zero, and this should include aviation and working to bring other nations with us on the path to net zero.

 

  1. The UK should engage bilaterally with partners in the EU, US and other markets to ensure the alignment of technology investment plans, and also to demonstrate a joined-up and collaborative approach at ICAO.

 

September 2021