Renewable fuel review: DfT publishes response

First introduced in 2008, the RTFO (Renewable Transport Fuel Obligation) is the government's main lever to encourage the use of low carbon fuel in surface transport, working by placing an annual obligation on fuel suppliers which requires a certain percentage of their fuel to be sustainable low carbon fuel (LCF) rather than fossil fuel. 

With LCFs (such as renewable diesel, biomethane and biodiesel) offering well-to-wheel GHG emission savings from 76 to 125%, they represent a prime opportunity to reduce emissions and help the UK meet its carbon budgets. 

Logistics UK supports the RTFO to help incentivise the uptake of LCFs in the transition to decarbonise, alongside the shift to electric vehicles. With obligation targets currently set to increase until 2032 and then remain at that level into the future, industry is calling for the trajectory to be more ambitious and to continue rising beyond this point to help reduce greenhouse gas emissions so welcomes the commitment to a consultation on the broader RTFO scheme containing proposals for the future target trajectory. 

The logistics sector is committed to decarbonising, and it is widely accepted that battery electric is the primary route to decarbonise HGVs, however, many barriers remain in place around commercial viability, charging infrastructure and operational use cases. 

It is therefore reassuring to hear government pragmatically acknowledge that "While ZE [zero emission] technology options for the HDV [heavy duty vehicle] sector are already being deployed, parts of this sector, including coaches and heavy goods vehicles (HGVs), are still at an earlier stage of deployment compared to cars and vans,".

In addition, the response explains how "These sections of the HDV market are therefore likely to take longer to transition. Older vehicles will also remain in use throughout the coming decades, and so there will be a need for combustible fuels. During this transition, the RTFO will continue to support utilisation of low carbon fuel options such as higher biocontent fuels (HBFs) and biomethane, enabling operators to achieve further GHG emission reductions." 

Logistics UK has been working to achieve greater recognition of the complimentary role that LCFs can play alongside the transition to zero emission tailpipe technologies, particularly for the heaviest vehicles and specialise use cases, to ensure the sector can take advantage of immediate savings today and will continue to engage on this critical topic.