Trade and markets
 

Detail

Area
United Kingdom
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/09/2017
Policy Category
Renewable energy
Policy Instrument
Biofuel policy
Description
Published a long-term strategy for raising the supply and sustainability of renewable transport fuels in the country, with a view to lower the GHG intensity of transport fuels, while providing a stable policy environment for investments into renewable low-carbon fuels.
Notes
The U.K. Government published its long-term strategy for increasing the supply and sustainability of renewable transport fuels in the country. The new policy package is aimed at lowering the GHG intensity of transport fuels, while providing a stable policy environment for investments into renewable low carbon fuels. From April 2018, the share of renewable fuels in total fuel consumption will be lifted to 7.25 percent, further increasing to 9.75 percent in 2020 and 12.4 percent in 2032. The contribution crop-based biofuels can make towards the above obligations will be lowered to 4 percent in 2020, steadily declining to 2 percent in 2032 – a provision that is expected to place a significant demand on waste biofuel feedstock, in particular used cooking oil. Furthermore, a sub-target (as well as special financial incentives) will be introduced for so-called ‘development fuels’, i.e. high-blend fuels suitable for meeting the long-term goal of decarbonizing the heavy goods vehicle and aviation sectors. Industry representatives claimed that the cap on crop-based fuels was too stringent and unnecessarily limited the market for biofuels with proven GHG reduction potential. Concerns were also expressed that the new policy reduces the U.K.’s competitiveness vis-