UK sustainable aviation report
File(s)
Author(s)
Type
Report
Abstract
The UK must urgently find ways to boost
productivity. Commercial aviation is a
technologically sophisticated industry in
which the UK is a global leader, and therefore
a prime candidate for productivity-enhancing
innovation. This CSEP white paper is the first
of two reports that review the state of the
aviation sector in the UK, and the opportunities
for economic growth brought about by its
transition to net zero.
Aviation is an innovative but carbon-intensive industry.
Advances in this sector generate social returns that
extend well beyond individual companies, especially
when they also target carbon emissions. By investing
in aviation decarbonisation, the UK can achieve two
goals, economic growth and lower emissions. The
sector’s combination of technological complexity, global
interdependence and regulatory oversight presents both
a significant challenge and an opportunity. Progress in
aviation could demonstrate the feasibility of achieving
emissions reduction in other hard-to-abate sectors such
as shipping, heavy industry and long-distance logistics,
as well as serving as a catalyst for stimulating wider
economic growth in new industries.
All decarbonisation pathways, however, come with
risk. Available options range from proven measures with
limited impact to risky solutions that would need further
R&D and new infrastructure. Accepting some level of
risk is necessary for innovation and productivity growth.
The UK should assume a prominent role in aviation
decarbonisation to strengthen both its leadership in green technologies and to generate sustainable growth.
This two-part series focuses on the five technology levers
that are being considered to reduce the climate impact of
aviation and create economic opportunities for the UK:
1. Sustainable Aviation Fuels (SAF) are expected to make
more of the heavy lifting over the next two decades.
However, they are currently too expensive and require
a technological and/or business model breakthrough.
Investment in R&D is essential to achieve a step-change
in cost.
2. Hydrogen/electric commercial flight represent a
long-term solution that must be built from the ground
up. The UK has pioneering companies in the field and
has been an early mover in the development of the
technology. This will be the subject of the second CSEP
report that will explore what is needed to develop zeroemission (ZEV) flight.
3. Fuel efficiency improvements will continue to be
a significant source of value creation to the UK as
draws on a broad industrial base. The UK is strategically
positioned to exploit opportunities opened by the
next generation of single-aisle aircraft, including
both high-bypass engines and high-aspect-ratio wing
technologies. Indeed, this study has shown that the
highly fuel efficient Ultrafan engine from Rolls Royce
could add 141 £billion of Gross Valued-Added (GVA) and
35,000 jobs to the UK economy if successful.
4. Available evidence indicate that contrails may have a
comparable net warming effect to that of aviation’s
carbon emissions. Operational improvements could
therefore reduce the climate impact of aviation on a
much faster timescale. With targeted investment and
international engagement, the UK should establish
itself as the global leader in contrail management and
efficient airspace operations, reinforcing its broader
aviation decarbonisation strategy.
5. Carbon removal options such as CCS, CCUS and DAC
could theoretically eliminate residual emissions in the
future, but DAC and CCS are prohibitively expensive,
long-term CO2 storage is unproven, and CCU pathways
recycle CO2 temporarily and therefore cannot be
counted as carbon removal for aviation accounting
purposes under ETS/CORSIA. There are too few
viable CCU use cases that could capture the required
residual CO2 emissions from commercial flight. Carbon
management of this type is therefore unrealistic and
should not be pursued further for aviation.
Some of those levers are specific to the aviation sector,
while others are general-purpose technologies. In
general, aviation’s net zero transition must be viewed
within the broader decarbonisation landscape, where
private investment is directed to the most cost-effective
opportunities with the highest impact potential. Aviation has large abatement costs and long technological development cycles. Immediate priorities should therefore include sustained R&D across all levers to drive down the future cost of decarbonisation, establishing mission-driven support mechanisms to nurture the nascent SAF and GGR industry, and optimisation of operations to reduce unnecessary carbon and non-carbon emissions (e.g., contrails).
Finally, the UK aviation industry sector offers a strong
business case for AI adoption. Advanced data-driven
technologies can accelerate both decarbonisation and
productivity gains. By applying AI across the various
decarbonisation levers, the UK can showcase tangible
examples of how intelligent systems can reduce fuel
use, streamline operations and accelerate the path
towards net zero, reinforcing the government’s ambition to be a global leader in both sustainable aviation and
AI innovation.
productivity. Commercial aviation is a
technologically sophisticated industry in
which the UK is a global leader, and therefore
a prime candidate for productivity-enhancing
innovation. This CSEP white paper is the first
of two reports that review the state of the
aviation sector in the UK, and the opportunities
for economic growth brought about by its
transition to net zero.
Aviation is an innovative but carbon-intensive industry.
Advances in this sector generate social returns that
extend well beyond individual companies, especially
when they also target carbon emissions. By investing
in aviation decarbonisation, the UK can achieve two
goals, economic growth and lower emissions. The
sector’s combination of technological complexity, global
interdependence and regulatory oversight presents both
a significant challenge and an opportunity. Progress in
aviation could demonstrate the feasibility of achieving
emissions reduction in other hard-to-abate sectors such
as shipping, heavy industry and long-distance logistics,
as well as serving as a catalyst for stimulating wider
economic growth in new industries.
All decarbonisation pathways, however, come with
risk. Available options range from proven measures with
limited impact to risky solutions that would need further
R&D and new infrastructure. Accepting some level of
risk is necessary for innovation and productivity growth.
The UK should assume a prominent role in aviation
decarbonisation to strengthen both its leadership in green technologies and to generate sustainable growth.
This two-part series focuses on the five technology levers
that are being considered to reduce the climate impact of
aviation and create economic opportunities for the UK:
1. Sustainable Aviation Fuels (SAF) are expected to make
more of the heavy lifting over the next two decades.
However, they are currently too expensive and require
a technological and/or business model breakthrough.
Investment in R&D is essential to achieve a step-change
in cost.
2. Hydrogen/electric commercial flight represent a
long-term solution that must be built from the ground
up. The UK has pioneering companies in the field and
has been an early mover in the development of the
technology. This will be the subject of the second CSEP
report that will explore what is needed to develop zeroemission (ZEV) flight.
3. Fuel efficiency improvements will continue to be
a significant source of value creation to the UK as
draws on a broad industrial base. The UK is strategically
positioned to exploit opportunities opened by the
next generation of single-aisle aircraft, including
both high-bypass engines and high-aspect-ratio wing
technologies. Indeed, this study has shown that the
highly fuel efficient Ultrafan engine from Rolls Royce
could add 141 £billion of Gross Valued-Added (GVA) and
35,000 jobs to the UK economy if successful.
4. Available evidence indicate that contrails may have a
comparable net warming effect to that of aviation’s
carbon emissions. Operational improvements could
therefore reduce the climate impact of aviation on a
much faster timescale. With targeted investment and
international engagement, the UK should establish
itself as the global leader in contrail management and
efficient airspace operations, reinforcing its broader
aviation decarbonisation strategy.
5. Carbon removal options such as CCS, CCUS and DAC
could theoretically eliminate residual emissions in the
future, but DAC and CCS are prohibitively expensive,
long-term CO2 storage is unproven, and CCU pathways
recycle CO2 temporarily and therefore cannot be
counted as carbon removal for aviation accounting
purposes under ETS/CORSIA. There are too few
viable CCU use cases that could capture the required
residual CO2 emissions from commercial flight. Carbon
management of this type is therefore unrealistic and
should not be pursued further for aviation.
Some of those levers are specific to the aviation sector,
while others are general-purpose technologies. In
general, aviation’s net zero transition must be viewed
within the broader decarbonisation landscape, where
private investment is directed to the most cost-effective
opportunities with the highest impact potential. Aviation has large abatement costs and long technological development cycles. Immediate priorities should therefore include sustained R&D across all levers to drive down the future cost of decarbonisation, establishing mission-driven support mechanisms to nurture the nascent SAF and GGR industry, and optimisation of operations to reduce unnecessary carbon and non-carbon emissions (e.g., contrails).
Finally, the UK aviation industry sector offers a strong
business case for AI adoption. Advanced data-driven
technologies can accelerate both decarbonisation and
productivity gains. By applying AI across the various
decarbonisation levers, the UK can showcase tangible
examples of how intelligent systems can reduce fuel
use, streamline operations and accelerate the path
towards net zero, reinforcing the government’s ambition to be a global leader in both sustainable aviation and
AI innovation.
Date Issued
2026-04-29
Citation
Future of sustainable aviation- opportunities and priorities for UK, 2026
Journal / Book Title
Future of sustainable aviation- opportunities and priorities for UK
Copyright Statement
© 2026 The Author(s).
Subjects
aviation
CSEP
sustainable
Publication Status
Unpublished