A consultation on the carbon-reducing Renewable Transport Fuel Obligation (RTFO), and how it will operate has been launched by Transport Minister Dr Stephen Ladyman.
The Obligation means that by 2010, 5% of all the fuel sold on UK forecourts will come from a renewable source. The measure is predicted to save one million tonnes of carbon a year by 2010.
The consultation focuses on the detailed design of the scheme and which suppliers will be affected; how suppliers of renewable fuel would report on the carbon savings and wider impacts of those fuels; and how the RTFO might develop after 2010/11.
Dr Ladyman said: “The Obligation will play a key role in making road transport fuels greener. By consulting on the details now we are paving the way for the Obligation to start in 2008. In particular, we want to encourage the supply of biofuels from sustainable sources which save as much carbon as possible.”
The consultation finishes on May 17. The RTFO was originally announced in November 2005. The Chancellor announced in the 2006 Budget that it would start in April 2008 when 2.5% of all fuel sold on UK forecourts will come from a renewable source, rising to 3.75% in 2009 and 5% in 2010.