UK government seeks feedback on future of RTFO

The UK government issued a report on Monday November 25, inviting stakeholders to provide feedback on key aspects of the Renewable Transport Fuel Obligation (RTFO) plan and its impact on reducing greenhouse gas (GHG) emissions in the transport sector.

The RTFO, which has been fundamental in encouraging the use of renewable fuels such as biodiesel, bioethanol, sustainable aviation fuel (SAF) and hydrogen, is being reassessed to ensure its targets and mechanisms remain effective in achieving long-term GHG reductions.

In the report, the British government says it aims to align the plan with the UK’s broader net-zero commitments and subsequent carbon budgets.

According to recent UK government data on biofuels, the RTFO has supported the supply of 1.44 billion liters of renewable fuel so far this year, a slight decline from 1.48 billion liters in 2023.

This reduction was caused by a sharp (18%) drop in biodiesel volumes, which fell to 643 million liters from 790 million liters in 2023. Despite this, hydrotreated vegetable oil (HVO) volumes almost doubled year-on-year, to reach 254 million liters so far in 2024, highlighting the growing adoption of advanced fuels.

Additionally, bioethanol volumes increased by 13% to 684 million liters, reinforcing its role as a significant contributor to renewable energy in transport.

The government said that it is now seeking input on several critical aspects of the RTFO.

Stakeholders are being asked to assess whether the current trajectory of renewable fuel targets remains appropriate beyond 2032, or if adjustments are needed to maximize emissions reductions and support decarbonization efforts.

By 2032, the RTFO requires 21% of all UK transport fuel to come from renewable sources, and caps the total contribution of crop-based biofuels at 2% of the entire supply. Development fuels (advanced fuel innovations) are expected to contribute 3.4% and waste-based fuels 15.67% of the total.

Another focus is how effectively the RTFO rewards low-carbon fuels (LCFs) and whether the incentives are sufficient to drive continued investment in this sector, the report said.

Balancing the use of crop-based feedstocks with waste-derived alternatives is also under review, particularly as competition for waste-based fuels is expected to increase.

Additionally, the effectiveness of development fuels category is being re-evaluated after “development diesel” volumes more than doubled to 24 million liters in 2024, while “development petrol” rose by 6 million liters to 10 million liters.

Stakeholders are also being asked to share their views on the administration of the RTFO, including the certification processes and compliance mechanisms.

Evaluating the plan’s impact

According to the report, the call for evidence emphasizes the importance of reflecting on the RTFO’s achievements to date. Specifically, it seeks to determine how effective current target levels have been in maximizing GHG savings and stimulating investment in the low-carbon fuels industry.

According to the 2024 data, the RTFO achieved a certification rate of 78%, down slightly from 81% in 2023, suggesting there is room for improvement in terms of compliance and efficiency.

“It is now important [that] we consider whether the current trajectory is appropriate and how it should be reflected beyond 2032 to achieve effective GHG emissions savings in subsequent carbon budgets,” the government said.

The feedback gathered will shape the next phase of the RTFO implementation, the report said, to ensure it remains fit for purpose as the UK transitions to cleaner energy.

This includes addressing challenges such as securing sustainable feedstock, scaling advanced fuel production and meeting ambitious net-zero targets.

For example, UK SAF volumes fell slightly to 37 million liters in 2024, but the government’s SAF mandate aims to significantly expand production in the coming years to align with international standards such as the EU’s ReFuelEU Aviation initiative, which mandates that airlines use a minimum of 2% SAF by the end of 2025.

Stakeholders can read the report and provide feedback by visiting the consultation here. The deadline for submissions is January 27, 2025.