Chair,

I have the honour of speaking on behalf of Australia, the United Kingdom, and the United States on our effort through the AUKUS partnership to determine the optimal pathway for Australia to acquire conventionally armed, nuclear-powered submarines.

Chair,

We are now more than one year into our 18-month initial consultation period, and we are pleased with the progress made so far.

Since the September Board meeting, senior officials and technical experts have held further trilateral discussions in our capitals. We have also continued to hold productive technical consultations with the IAEA’s AUKUS taskforce and the IAEA

Secretariat in Vienna as we work to formulate a safeguards approach that will meet the IAEA’s technical objectives. These consultations are regular and ongoing, and they reflect the depth of the AUKUS partners’ commitment to the nuclear non-proliferation regime.

We remain resolutely committed to setting the highest possible non-proliferation standards in relation to our co-operation on the AUKUS endeavour, and we will continue to keep Member States fully updated on our trilateral consultations with the IAEA.

Chair,

Sadly, there have been continued calls by some countries for the Agency to suspend engagement with us until a separate mechanism is established to discuss all aspects of AUKUS cooperation on nuclear-powered submarines.

All Member States have the right to confidential discussions with the IAEA Secretariat, and it is vital that the Agency remains the impartial and independent technical authority on the implementation of safeguards agreements. At the September Board, the Director General reiterated his satisfaction with AUKUS partners’ level of engagement to date, and reaffirmed the mandate of the IAEA to engage with Member States on safeguards matters. To reconfirm what we have set out at the Board on previous occasions, Australia’s proposed naval nuclear propulsion activities will occur within the framework of Australia’s Comprehensive Safeguards Agreement (CSA) and Additional Protocol, providing the firm legal basis on which the IAEA, through the Director General and the Secretariat, is engaging with Australia and AUKUS partners.

Chair,

We would like to briefly address the unfounded criticism that certain members continue to repeat at this Board. As an example, one distinguished delegate yesterday identified nine items on which they claim the Director General is required to – and has purportedly failed to – report with respect to AUKUS. In his September report, the Director General explicitly stated that Australia has “complied with its reporting obligations under its CSA and AP, including those required under Modified Code 3.1 of the Subsidiary Arrangements to its CSA.”

The Director General also confirmed that further reporting by Australia at this time would be premature because Australia has “informed the Agency that…no activities listed in Annex I of the AP had either been conducted or were planned; no transfers of equipment/material listed in Annex II of the AP had either taken place or were planned; and no decision had been taken to construct or otherwise acquire any nuclear reactor or other nuclear facility in connection with AUKUS.”

Given we have repeatedly responded to these unfounded allegations in previous meetings, we will not again refute them line by line. However, we would like to make one point clear: Australia and the AUKUS partners are fully compliant with their respective safeguards obligations. Any assertions to the contrary are without any factual or legal foundation.

Chair,

We will continue our engagement with the Agency over the coming months, and we anticipate there will be further reports from the Director General in the future upon which we look forward to further discussions. We will continue to update the Board in future, as appropriate.

Thank you, Chair.

• First time an aircraft has flown in the UK using 100% sustainable aviation fuel on all engines
• Potential to reduce lifecycle carbon emissions by up to 80% while improving operational effectiveness
• Another key step by the RAF towards achieving Net Zero by 2040

An RAF Voyager – the military variant of an Airbus A330 – took to the skies over Oxfordshire powered entirely by 100% sustainable aviation fuel (SAF), paving the way for a range of possibilities for the future of flying military and civilian aircraft.

The flight, which took place on Wednesday, was a joint endeavour between the RAF, DE&S and industry partners Airbus, AirTanker and Rolls-Royce, with the fuel supplied by Air bp.

Sustainable aviation fuel – which is made from waste-based sustainable feedstocks, such as used cooking oil – reduces lifecycle carbon emissions on average by up to 80% compared to the conventional jet fuel it replaces, lessens the RAF’s reliance on global supply chains, and improves operational resilience.

Defence Minister Baroness Goldie said:

The Royal Air Force has flown the UK’s first military air transport flight using 100% sustainable aviation fuel on one of their operational Voyager aircraft. They should be rightly proud of this achievement; it is a breakthrough moment for the RAF and an exciting development for the MOD.

Through the RAF’s pioneering spirit, expertise and partnership with UK industry, British science and engineering is leading the way in improving operational resilience and developing future operating capability in a climate-changed world.

Different approaches will suit different platforms and environments. As such, a range of alternative fuel options are being looked at to ensure the UK is at the forefront of this developing technology.

This success follows last November’s small aircraft UK flight powered by 15 litres of synthetic gasoline – another world-first led by the RAF. Synthetic fuel is made from water and carbon dioxide, which is then put under pressure and an electric current run through it.

Wednesday’s 90-minute flight from RAF Brize Norton, flown by a combined RAF, Rolls-Royce and Airbus flight test crew, replicated an air-to-air refuelling sortie and was witnessed by senior RAF and industry representatives. It demonstrated the RAF’s potential for its future operational capability, ensuring the ability to contribute to UK defence wherever and whenever required.

Chief of the Air Staff, Air Chief Marshal Sir Mike Wigston said:

Climate change is a transnational challenge that threatens our resilience, our security and our collective prosperity. That is why I have set the RAF the ambitious challenge of becoming the world’s first net-zero Air Force by 2040. The way we power our aircraft will be key to meeting that challenge and the RAF is already thinking about how we will operate beyond fossil fuels.

This exciting trial flight of a Voyager from RAF Brize Norton powered entirely by Sustainable Aviation Fuel is an important milestone on that journey, and marks another technological first for the RAF alongside our industry partners.

Engineers from Airbus’ Commercial Aircraft and Defence and Space divisions have been working with the RAF, Rolls-Royce and Airtanker testing the aircraft’s performance and handling on the ground and in the air in preparation for the final flight with both engines powered by 100% SAF.

Aviation Minister at the Department for Transport, Baroness Vere said:

Our Jet Zero Strategy made clear that sustainable aviation fuels are key to greener flight for both military and civilian aviation.

This is a win for the planet and a testament to British ingenuity. We have launched the £165 million Advanced Fuels Fund to kickstart a homegrown SAF industry, as well as challenging the sector to deliver the first net zero transatlantic flight next year.

This breakthrough test flight is just one of the ways the RAF is actively working to reduce lifecycle carbon emissions produced by flying its aircraft. Other innovations have included a world-first, record breaking microlight flight using synthetic fuel, flying an electric aircraft at RAF Cranwell and creating fuel from genetically modified bacteria.

While continuing to fulfil the priority focus of protecting the nation, the sustainable aviation fuel could mark a step-change towards the RAF’s goal to be Net Zero by 2040. Working towards the Government’s Net Zero 2050 goal and Jet Zero Strategy, the RAF also plans for their first Net Zero airbase by 2025.

In addition to supporting the use of Sustainable Aviation Fuel in the Armed Forces, the Royal Air Force Commander in Chief HM King Charles III has also supported an increase in its adoption in the private sector though the Sustainable Markets Initiative. The SMI is a network of global CEOs from across all industries, working together to accelerate a sustainable future in line with its mandate. Part of the SMI’s work is raising awareness of SAF amongst the business community and encourage greater SAF uptake in corporate travel in addition to increased purchase agreements to encourage demand from the public and private sectors.

Scottish Secretary Alister Jack has responded to the Chancellor’s Autumn Statement where the UK Government pledged to restore stability to the economy, protect high-quality public services and build long-term prosperity for the United Kingdom.

Jeremy Hunt outlined a targeted package of support for the most vulnerable, alongside measures to get debt and government borrowing down.

The plan he set out is designed to fight against inflation in the face of unprecedented global pressures brought about by the pandemic and the war in Ukraine.

Scottish Secretary Alister Jack said:

We are facing complex global challenges, and the Chancellor has had to take some difficult decisions. By reducing our borrowing, tackling the root causes of inflation and putting our public finances on a stable footing, we will create the economic stability we need for our long-term prosperity.

As we promised, we have put in place extra support for those who need it most, with support on energy bills and increases in pensions, benefits and the National Living Wage.

The Scottish Government will receive an additional £1.5 billion, to help support public services in Scotland. We are also putting extra money into two key projects in Scotland. Catapult will help grow our offshore energy capability, and a feasibility study to upgrade the A75 will pave the way for much improved connectivity between Scotland, Northern Ireland and England.

As a result of today’s tax and spending decisions, the Scottish Government will receive around an additional £1.5 billion over 2023-24 and 2024-25.

Delivering for the people of Scotland, the Chancellor has reconfirmed the UK Government’s commitment to work with the Scottish Government on options to improve the A75, in line with the findings from the Union Connectivity Review.

He also confirmed that funding for the UK’s 9 Catapult innovation centres will increase by 35% compared to the last funding cycle, this includes the offshore renewable catapult in Glasgow.

To protect the most vulnerable from the worst of cost-of-living pressures, the Chancellor announced a package of targeted support worth [£26bn], which includes continued support for rising energy bills. More than eight million households on means-tested benefits will receive a one-off payment of £900 in instalments, with £300 to pensioners and £150 for people on disability benefits.

The Energy Price Guarantee, which is protecting households throughout this winter by capping typical energy bills at £2,500, will continue to provide support from April 2023 with the cap rising to £3,000. With prices forecast to remain elevated throughout next year, this equates to an average of £500 support for households in 2023-24.

Working age benefits will rise by 10.1%, boosting the finances of millions of the poorest people in the UK, and the Triple Lock will be protected, meaning pensioners will also get an inflation-matching rise in the State Pension and the Pension Credit.

The National Living Wage will be increased by 9.7% to £10.42 an hour, giving a full-time worker in Scotland a pay rise of over £1,600 a year, benefitting 160,000 of the lowest paid workers.

The Scottish Government is receiving additional funding at the Autumn Statement for the current Spending Review period to 2024-25, but will be expected to live within these new budgets and support our mission of fiscal discipline. To improve public finances, from 2025-26 onwards day to day spending will increase by 1% with capital spending held flat in cash terms. This means overall departmental and devolved administration budgets will continue to rise in real terms, although more slowly, increasing by 0.5% each year to 2027-28.

To raise further funds, the Chancellor has introduced tax rises of £25 billion by 2027-28. Based around the principle of fairness, all taxpayers will be asked to contribute but those with the broadest shoulders will be asked to contribute a greater share.

The threshold at which higher earners start to pay the 45p rate will be reduced from £150,000 to £125,140, while Income Tax, Inheritance Tax and National Insurance thresholds will be frozen for a further two years until April 2028. The Dividend Allowance will be reduced from £2,000 to £1,000 next year, and £500 from April 2024 and the Annual Exempt Amount in capital gains tax will be reduce from £12,300 to £6,000 next year and then to £3,000 from April 2024.

The most profitable with the broadest shoulders will also be asked to bear more of the burden. The threshold for employer National Insurance contributions will be fixed until April 2028, but the Employment Allowance will continue protect 40% of businesses from paying any NICS at all.

In addition, the government is implementing the reforms developed by the OECD and agreed internationally to ensure multinational corporations pay their fair share of tax. And as confirmed last month, the main rate of Corporation Tax will increase to 25% from April 2023.

To ensure businesses making extraordinary profits as a result of high energy prices also pay their fair share, from 1 January 2023 the Energy Profits Levy on oil and gas companies will increase from 25% to 35%, with the levy remaining in place until the end of March 2028, and a new, temporary 45% levy will be introduced for electricity generators. Together these measures will raise over £55 billion from this year until 2027-28.

To ensure fiscal discipline while providing support for the most vulnerable, the Chancellor has introduced two new fiscal rules, that the UK’s national debt must fall as a share of GDP by the fifth year of a rolling five-year period, and that public sector borrowing in the same year must be below 3% of GDP. Overall, the Autumn Statement improves public finances by [£55 billion] by 2027-28, and the OBR forecasts both of these rules to be met a year early in 2026-27.