Increasing the use of renewable fuels will reduce carbon emissions, tackle climate change and make the transport sector as sustainable as possible, according to the Department of Transport.
Changes to the Renewable Transport Fuel Obligation (RTFO) will compel owners of transport fuel who supply at least 450,000 liters a year or more, to make sure the mix is at least 12.4% biofuel by 2032.
Currently the industry, which supplies fuel to transport companies such as haulage firms and airlines, is only expected to meet a target of 4.75% biofuel.
The government is also challenging the sector to reduce greenhouse gas emissions by 6% by 2020 – which coupled with the RTFO changes will support the UK’s low carbon fuel industry while helping make sure the UK transport sector is one of the most sustainable in the world.
Transport Minister Jesse Norman said: "We are committed to reducing carbon emissions from transport to tackle climate change, and to making the sector as sustainable as possible. Increasing our use of renewable fuels is a key part of this."
The changes we are introducing will double our carbon emissions savings from the RTFO scheme by doubling the use of renewable fuels and reducing reliance on imported fossil diesel.
This will deliver emissions savings equal to taking hundreds of thousands of cars off the road.
The changes to the RTFO scheme announced today will also, for the first time, reward and support the production of sustainable renewable aviation fuels in the UK.
Willie Walsh, chief executive of the International Airline Group, said: "Providing sustainable fuel production for aircraft with the same economic incentives given to road vehicles is long overdue. This is a major step forward to help the UK aviation industry meet its carbon reduction targets."
These incentives have enabled alternative fuel sources to be developed for cars and lorries, while aviation has traditionally been heavily dependent on fossil fuels. This government initiative will support our plans to build Europe’s first waste to jet biofuel plant in Britain, creating UK jobs and growth”.