Low carbon fuels strategy to be published May 2024 

Given that LCFs can provide a viable option for immediately reducing emissions from logistics operations by up to 80%, the business group has been calling for:    

• A long-term strategy for LCFs across the economy that makes strategic decisions over infrastructure, manufacturing and which fuels would be best used by which industries, given the likelihood of scarcity of supply driven by international demand. This strategy should be evidence-based, keep the cost of logistics down, consider the carbon emissions impact of the whole fuel lifecycle, be backed by investment in infrastructure and R&D, and by a clear regulatory framework.  

• LCFs to be incentivised in the tax system to increase their adoption by a continuation of the gas duty differential to 2030, the development of a Hydrotreated Vegetable Oil (HVO) differential, decoupling the price of biomethane from wholesale natural gas prices and support from government for the sustainable production of LCFs including Sustainable Aviation Fuel (SAF).    

• A halt to proposed changes to the Greenhouse Gas Protocol (GHGP) that would mean companies would no longer be able to report the benefit of using biomethane in their truck fleets and would have to report as if they were using fossil natural gas which has only a small carbon benefit over diesel.  

Members will be updated when the strategy is published.   

Published On: 14/03/2024 00:00:00

Comments Section

If you are a Logistics UK member login to add comments.