RTFO


UK Renewable Transport Fuel Obligation

The RTFO was introduced in 2007, took effect as of April 2008 and was amended in 2009.  It requires suppliers of fossil fuels to ensure that a specified percentage of the road fuels they supply in the UK is made up of renewable fuels.  There is a current target of 5% (by volume) by 2013/14 and there will be a mandate of 10% by energy (13% by volume), in line with the EU Renewable Energy Directive (RED), by 2020.  In 2010/11 obligated suppliers will be required to blend 3.5%.  The RTFO will be based on the now legally binding EU RED that mandates fuel suppliers to blend RTFs rather than just relying on submitting reports on the carbon emission savings and sustainability of Renewable Transport Fuels.

It should also be noted that the mandate is on Renewable Energy in transport and not just Renewable Transport Fuels, hence it will include electrical vehicles.  However, the UK Government has acknowledged that RTFs are one of the few technologically and commercially viable solutions that are ready for the transport sector mass market.  Non-compliance with UK targets will result in obligated parties having to pay a "buy-out" penalty (set at £0.30/litre from April 2010).

Renewable Energy Association