Official UK report to call for green aviation fuel subsidies

The UK government will on Thursday publish a report recommending state subsidies for the production of low-carbon aeroplane fuel made from household waste. The Department for Transport will release the report as part of wider package of proposed policies but ministers are still haggling with Treasury over the scale of the subsidies, according to people close to the matter. Rishi Sunak, prime minister, will on Thursday oversee a so-called government “energy security day”, with dozens of policy announcements and consultations running to about 1,000 pages. Ministers have drawn up plans to fund a new nuclear body called Great British Nuclear; ease onshore wind development; and tweak the windfall tax on oil and gas companies, according to officials. Grant Shapps, energy secretary, has signalled his intention to remove green levies from customers’ electricity bills and include them in general taxation, and to change the way that electricity prices are set. The car industry is hoping for clarity over of a controversial electric vehicle sales mandate due to kick in next year. Auto sector executives have warned that to allow manufacturers time to plan ahead they need certainty as soon as possible on new rules stipulating a certain proportion of sales must be of electric vehicles, Officials have also been finalising an updated “green finance strategy” to encourage the uptake of products such as “green gilts” — bonds which finance projects that contribute to reducing carbon emissions. However, some of these policies have been delayed until later this year, according to officials. Ministers are under pressure to draw up a fresh “net zero” plan after their previous version was rejected by a High Court judge last summer for being insufficiently detailed.<br/>