Renewable Transport Fuels Obligation (RTFO)
In November 2005 the Government announced it would introduce a Renewable Transport Fuel Obligation (RTFO) - a long term mechanism requiring transport fuel suppliers to ensure a set percentage of their sales are from a renewable source. The Obligation also requires suppliers to publicly report on the carbon savings and sustainable production of biofuels supplied. Non-complying suppliers will pay a penalty.
Backed by tradable offset certificates - Renewable Transport Fuel Certificates (RTFCs), the Obligation programm aligns with the EU Directive 2003/30/EC on the promotion of biofuels and renewable fuels for transport.
Fuel obligation levels |
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| 2008/2009 | 2009/2010 | 2010/2011 | 2011/2012 | 2012/2013 | 2013/2014 |
Obligation levels for renewable transport | 2.50% | 3.25% | 3.50% | 4% | 4.50% | 4.75% |
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