- up to £43 million will be allocated to green aviation projects, paving the way for airport expansion and supporting highly skilled jobs
- the funding will progress ambitions for zero emission aircraft to take to the skies and allow research into how climate-warming water vapour trails from aircraft can be avoided
- government support for the industry will unlock private investment and create a green aviation sector fit for the future
The aviation industry is set for a major boost as £43 million for green projects was announced by the government today (20 January 2026), supporting jobs and unlocking new investment.
The major investment comes as the Government drives forward plans for expansion at Heathrow, Gatwick and Luton airports and the Transport Secretary will today chair a meeting with prominent airlines, airports, innovators and engineering firms to discuss how cutting-edge technology will decarbonise the sector while delivering growth.
With the production of low-carbon fuels alone expected to add up to £5 billion to the economy by 2050, the funding will drive millions of pounds of private investment into the aviation sector, supporting skilled jobs in technology development and scientific research and funding projects to slash emissions from aviation.
Businesses, researchers and universities across the UK will be invited to bid for their share of the £43 million, with competitions launching from February to allocate the funding. The funding will go towards research and development projects that help to deliver net zero aviation by 2050.
Transport Secretary, Heidi Alexander, said
We’re backing UK businesses by powering up green aviation. Our £43 million investment will deliver the cutting-edge technology of the future, grow the economy and support highly skilled jobs as part of our mission to deliver national renewal.
Zero emission aircraft, hydrogen fuels and other emerging technologies are vital to reduce the climate impacts from flying and will enable us to deliver our airport expansion plans to boost connectivity and grow the economy.
The technologies that will be developed with this funding, such as clean fuels and zero-emission aircraft, will play an important role in delivering on the government’s vision to expand airports in line with climate targets, by decarbonising aviation and improving air quality.
The investment could also be used for a trial to understand how contrails – condensation trails produced from aircraft exhausts that can contribute to global warming – could be avoided.
The Civil Aviation Authority will develop regulations required for the widespread use of hydrogen fuel through this investment – including support for pioneering companies and universities that are preparing for new zero carbon technology.
To further the UK’s world-leading reputation on green aviation, some of this funding will support the use and tracking of sustainable aviation fuels in regions like Africa and the Caribbean and improve their participation in schemes that offset global aviation emissions.
This will ensure UK airlines are not at a financial disadvantage to airlines based in low-income countries, who can avoid the costs associated with carbon offsetting because they do not have the required tracking and implementation tools.
In further support for the sector, the Sustainable Aviation Fuel Bill, coming into force later this year, will provide long-term certainty for the SAF market by guaranteeing a set price for UK producers, helping the UK meet its climate targets.
This is backed by an additional £63 million to accelerate new SAF production plants, alongside £2.3 billion through the Aerospace Technology Institute programme over the next decade to support cutting-edge aerospace innovation and thousands of highly skilled jobs.
The Hydrogen in Aviation Alliance said
The funding for green aviation projects announced today will help ensure the UK leads the future of flight. Hydrogen-powered aviation is at the heart of this ambition and is essential to decarbonising aviation while ensuring the sustainable growth of our industry.
We welcome the government’s support for pioneering businesses developing zero emission aviation technologies, alongside its commitment to enabling the Civil Aviation Authority to put in place the right regulations for the use of hydrogen fuel.
These are important steps on the journey to making hydrogen-powered flight a reality and securing a competitive, sustainable future for UK aviation.
Duncan McCourt, Chief Executive of Sustainable Aviation, said
We know that aviation is one of the most challenging sectors to decarbonise and, as we continue on the road to net zero by 2050, industry action combined with government investment are required.
This funding will help turn ambition into operational reality across key decarbonisation pathways, helping to deliver carbon-neutral skies.
Tim Alderslade, Chief Executive of Airlines UK, said
Today’s investment in zero and lower emission technology is playing an important part in delivering a sustainable future for UK aviation, a process well underway with the launch last year of the sustainable aviation fuel mandate and imminent passage of the SAF revenue certainty mechanism into law.
The ongoing work of the Jet Zero Taskforce, bringing government, industry and experts together to drive progress, is a critical part of our collective efforts to ensure net zero remains a reality for our sector.