The UK government has announced up to 43 million GBP in funding for green aviation projects, aimed at supporting jobs, attracting private investment and helping the UK aviation sector work towards net zero emissions by 2050.
The funding, confirmed on 20 January 2026 by the Department for Transport, will be made available to businesses, universities and research organisations across the UK. Competitive funding rounds are expected to open from February, allowing organisations to bid for support for research and development projects focused on reducing aviation emissions.
The investment comes alongside the government’s plans to progress airport expansion at Heathrow, Gatwick and Luton. The Transport Secretary, Heidi Alexander, is due to meet with representatives from airlines, airports, engineering firms and technology developers to discuss how new technologies can reduce the environmental impact of flying while supporting growth in the sector.
Funding will support a range of technologies, including zero-emission aircraft, hydrogen-powered flight and sustainable aviation fuels (SAF). Research may also examine how aircraft condensation trails, known as contrails, contribute to climate change and how their formation could be reduced or avoided.
The government estimates that low-carbon fuel production alone could add up to 5 billion GBP to the UK economy by 2050. The 43 million GBP public investment is intended to unlock further private funding, supporting skilled roles in engineering, science and technology.
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 Civil Aviation Authority will also receive support through the programme to help develop the regulatory framework needed for the introduction of hydrogen as an aviation fuel. This includes work with companies and academic institutions developing new aircraft and fuel systems.
Meanwhile, some of the funding will be used to improve the tracking and use of sustainable aviation fuels internationally, particularly in regions such as Africa and the Caribbean. The aim is to support participation in global aviation carbon offsetting schemes and ensure UK airlines are not placed at a cost disadvantage compared with carriers operating in countries with limited monitoring systems.
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.
The announcement sits alongside other measures to support greener aviation. The Sustainable Aviation Fuel Bill, due to come into force later in 2026, will provide long-term price certainty for UK SAF producers. This is supported by 63 million GBP for the development of new SAF production plants and 2.3 billion GBP of funding for aerospace research and innovation through the Aerospace Technology Institute over the next decade.
