15.4.2008 UK introduces transport biofuels obligation

The UK’s Renewable Transport Fuel Obligation (RTFO) comes in to force today. The obligation aims to ensure that biofuels comprise 2.5% of petrol and diesel sold in the UK, in a move which can be seen as the government’s first step towards meeting the European Biofuels Directive’s target of 10% by 2020.

The Renewable Fuel Agency (RFA), an independent regulator, has been set up to be responsible for enforcing the government’s plans and ensuring that refiners, importers and suppliers of fossil based road transport fuels fulfill their commitments to the Obligation. Eligible biofuels under the RTFO include biodiesel, bioethanol and biogas, the use of which can allow suppliers to gain Renewable Transport Fuel Certificates (RTFCs) as evidence of their compliance with the Obligation.

The RTFO, however, comes amidst growing concerns about the potentially damaging environmental and social impacts resulting from the production of some biofuels. Deforestation, driven by land-use pressures resulting from the biofuel market, is bringing into question the ability of biofuels to deliver lasting climate change impact reductions.

There is also concern that, in the face of rising world food prices, large-scale biofuel production is adding to food shortages in the developing world. According to the World Bank, global food prices have risen by 83% in the last three years, which is creating social unrest in a number of countries. Indonesia, for example, has seen rapid deforestation to create available land for the growth of palm oil, a commonly used feedstock for biofuels.

In light of these potential problems, the RFA has placed a requirement on suppliers to submit reports showing the level of carbon emissions reductions over the life cycle of each biofuel. However, in the context of Greenpeace’s recent findings that the supermarket Tesco has been using palm oil in its ‘green fuel’ mix, the admission of the RFA that biofuels from ‘unknown origins’ will also be eligible for RTFCs reveals a loop-hole in the legislation and gives little guarantee to the consumer that the fuel they purchase will be sustainably sourced.

Environmental groups have therefore called for the RTFO to be put on hold until the government can ensure the sustainability of the biofuels sold on UK forecourts. Belinda Fletcher, from Greenpeace, said: "Palm oil is the leading cause of rainforest destruction in countries such as Indonesia. Trashing these forests for palm plantations massively speeds up climate change."

In response to these issues, the Department for Transport has set up a biofuels review which is due to report in June. This will inform government action and follows a recent House of Commons Environmental Audit which concluded that: "most first generation biofuels have a detrimental impact on the environment" and recommended that the government should seek to change the EU Biofuels Directive.

WhatGreenCar? notes that, while the government must now act fast to ensure the sustainability of the UK’s new and existing biofuel supplies, it should also recognise that the development and application of truly sustainable biofuels, such as waste vegetable oils (WVOs), should not be forgotten in the race to reduce transport emissions.