The UK government has announced a £43 million funding package for green aviation projects, with competitive bids opening from February 2026, as it seeks to accelerate decarbonisation while maintaining plans to expand capacity at Heathrow, Gatwick and Luton.
The funding will be available to businesses, universities and research organisations to support R&D that contributes to the goal of net zero aviation by 2050. Ministers say the programme is intended to unlock additional private investment and support skilled jobs across technology development and scientific research.
What’s being funded and why it matters to energy managers
For energy management pros, the announcement is another signal that decarbonisation is increasingly being pursued through whole-system interventions: new fuels, new propulsion, and supporting regulation, rather than relying on operational efficiency alone. The government highlighted zero-emission aircraft, hydrogen fuels, and clean aviation technologies as priorities, alongside work to reduce the climate impact of aviation such as potential research into avoiding warming contrails.
The Department for Transport also linked the investment to the UK’s longer-term industrial opportunity, noting expectations that low-carbon fuel production could add up to £5 billion to the economy by 2050.
Regulation and market mechanisms alongside R&D
A notable element for professionals tracking energy transition policy is the parallel focus on enabling conditions. The government said the Civil Aviation Authority (CAA) will develop regulations required for the widespread use of hydrogen fuel in aviation, supporting companies and universities preparing for deployment of new technology.
Alongside the new £43 million programme, ministers reiterated support measures aimed at building a UK sustainable aviation fuel (SAF) market. The release references the Sustainable Aviation Fuel Bill, expected to come into force later this year, which the government says will provide greater long-term certainty by guaranteeing a set price for UK SAF producers.
Industry groups welcomed the funding, positioning it as a practical step towards scaling solutions in a hard-to-abate sector. Sustainable Aviation’s CEO Duncan McCourt said government investment alongside industry action is needed to progress towards net zero, while Airlines UK chief executive Tim Alderslade pointed to ongoing cross-sector work through the Jet Zero Taskforce.
What happens next
Competitions to allocate funding will begin from February 2026, with organisations across the UK invited to bid for support.
Photo by Harrison Lugard on Unsplash
