In its Fuelling the Future report, the committee said the government must change its approach towards backing specific technology solutions to decarbonise the UK’s transport sector, or risk failing to cut emissions.
The cross-party group further urged the government to move beyond its "deliberately technology agnostic" mindset, as stated in its 2019 Technology Innovation Strategy.
The committee recommended the government invests in SAF using a Contracts for Difference model – which is where the authority provides a company with capital for the upfront costs of developing a technology, while guaranteeing the price it will pay when it comes on stream.
The group concluded SAF is most likely to become the aviation sector’s fuel of choice to replace high polluting hydrocarbons, as it can be used with little or no change to engine technology or airport infrastructure.
Transport Committee chair Iain Stewart MP said: "The committee heard time and again from experts that the government’s solution-neutral approach was understandable up to a point.
"But the time has now come for ministers, using the knowledge of alternative fuels we now have across all modes of transport, to show leadership and pick winners.
"With aviation – widely seen as one of the most high-polluting modes of transport for consumers – the government should invest in sustainable aviation fuels to help galvanise innovation and progress in the sector."
