Department For Transport
Detail of outcome
In summer 2020, we consulted on increasing the level of the buy-out price in the renewable transport fuels obligation (RTFO) order to protect greenhouse gas (GHG) savings from being lost. The consultation closed on 11 August 2020.
We were encouraged by the number of respondents that took part in the consultation. The majority of respondents agreed with our preferred option to increase the buy-out price from 0.30/litre to 0.50/litre.
In response, we intend to increase the RTFO buy-out price as proposed. Subject to Parliamentary timing and process, the increased buy-out price is expected to be in force for 1 January 2021.
Detail of feedback received
A summary of public feedback is included in the consultation outcome.
Suggests increasing the RTFO buy-out price for fuel suppliers and to ensure the continued greenhouse gas savings through biofuels.
Recent increases in the cost of biofuels relative to petrol and diesel mean that there is a greater risk that suppliers may buy-out of their obligations to supply renewable transport fuel.
This would result in lost greenhouse gas savings plus impacts on the UK biofuels industry.
To combat this threat, we propose increasing the RTFO buy-out price to ensure the continued supply of biofuels and other renewable fuels.
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