UK Consultation On Proposed Changes To Renewable Transport Fuel Obligations

On November 29, 2016, the United Kingdom (UK) Department of Transportation published proposed legislative changes to the Renewable Transport Fuel Obligation (RTFO), which is open for consultation until January 22, 2017.  Among the proposed changes is an increase in the blending mandates to 9.75 percent by volume for 2020.  The three main proposals outlined detail increasing the supply of waste derived fuels, encouraging the production of advanced renewable fuels, and setting a maximum cap for fuels from food crops.  The aim of the consultation is to determine whether further measures could be taken to minimize costs.
 
The RTFO was established to achieve the targets for renewable energy usage in the transportation sector set by the European Union by incentivizing fuel suppliers to provide biofuels at the lowest cost possible.  The objective is to encourage investment in renewable fuels so that the relative cost of biofuels decreases over time.