UK carbon prices are little changed Wednesday, suggesting the market might not be the focus of legislation planned to support producers of sustainable aviation fuel (SAF).
I would have expected an uptick in futures today if the market was thinking SAF hedging might boost demand for UK carbon contracts.
The support might include a contract for difference system …where SAF producers can be sure fossil fuels won’t damage their investment in SAF production facilities because the UK taxpayer will subsidize production if British carbon prices are not high enough to do the job.
The UK may be considering some other types of support.
For a few limited details of Britain’s plan, see this, p51:
