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Posts with tag renewable transport fuel obligation

Renewable Transport Fuel Obligation from DfT now in effect

Filed under: Biodiesel, Ethanol, Legislation and Policy, UK

The U.K. has been planning on requiring 2.5 percent of all road fuels sold to come from biofuels, rising to 5 percent by 2010, as part of a plan known as the Renewable Transport Fuel Obligation (RTFO). The time has finally come for that plan to commence, as April 15 marked its official start.

Transport Minister Jim Fitzpatrick says,"Making it easier for motorists to use greener fuel is an important step towards reducing carbon emissions from transport. It should help save millions of tonnes of carbon dioxide in the coming years." Requiring biofuels is not enough, thought, as the methods used to create the fuels and the sustainability of the process is equally as important. The DfT is on it and, starting in September of this year, the Renewable Fuels Agency will publish reports from fuel suppliers regarding the sustainability and environmental impact of the fuels that they deliver.

There are three ways for suppliers to meet the standards as required by the RTFO:
  • By supplying the relevant amount of biofuel themselves
  • By purchasing certificates from another transport
  • By paying a 'buy out' price in respect of some or all of their obligation
Perhaps we could do without the 'buy out' capability, but we'll be monitoring the situation to see how effective the RTFO is in the coming months. Read the press release after the break.

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