UK public consultation looks to increase cost of RTFO buy-out to boost biofuel consumption

In the UK, the government has opened a public consultation that seeks to ensure the continued decarbonization of road transport fuels through the supply of renewable fuels under the Renewable Transport Fuel Obligation (RTFO). Biofuels supported under the RTFO have successfully reduced greenhouse gas (GHG) emissions from transport over the last 12 years and will make up a third of the UK’s transport carbon budget contribution.

However, recent increases in the cost of biofuels relative to petrol and diesel mean that there is a risk that suppliers will ‘buy-out’ of their obligations to supply renewable transport fuel. This would result in lost GHG savings and a gap in UK carbon budgets as well as risking long-term impacts on the UK biofuels industry.

The government therefore proposes to increase the RTFO buy-out price to ensure the continued supply of biofuels and other renewable fuels and the GHG savings they deliver.

The consultation period began on July 28 and will run until midnight on August 11, 2020.