Consultation outcome

Amending the Renewable Transport Fuels Obligation (RTFO) to increase carbon savings on land, air and at sea

This consultation has concluded

Download the full outcome

Targeting net zero – next steps for the Renewable Transport Fuel Obligation: government response

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Annex A: cost-benefit analysis for next steps for the Renewable Transport Fuels Obligation

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Targeting net zero - next steps for the Renewable Transport Fuels Obligation: Hydrogen and renewable fuels of non-biological origin, government response

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Detail of outcome

Two-part consultation response outcome.

The targeting net zero response, originally released on 14 July 2021, outlines how new government policies are expected to deliver additional greenhouse gas (GHG) emissions savings by:

  • increasing the main Renewable Transport Fuels Obligation (RTFO) target to supply renewable fuels from 9.6% to 14.6% by 2032
  • supporting recycled carbon fuels
  • expanding RTFO support to new transport modes, such as renewable hydrogen in maritime, rail and non-road transport
  • implementing updated sustainability criteria

The second part, the renewable fuels of non-biological origins response, released on 19 July 2022:

  • allows fuel producers to use power purchase agreements to receive renewable energy across the grid and qualify for RTFO support on the affected fuels
  • shows our intent to balance the benefits and risk of bio hydrogen produced from methane by reclassifying its eligibility

Original consultation

Summary

Proposes altering the RTFO for greater carbon savings by revised renewable targets, recycled carbon and non-biological fuel amounts, plus its role in maritime.

This consultation ran from
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Consultation description

Proposes options to amend the RTFO in order to increase the carbon savings made. Savings would be made by:

  • increasing the RTFO main obligation to supply renewable fuel by 2.5%
  • expanding the RTFO to:
    • reward recycled carbon fuels (RCFs) – RCFs are fuels produced from fossil wastes that cannot be avoided, reused or recycled
    • be more flexible in rewarding renewable fuels of non-biological origin (RFNBO)
  • updating the sustainability criteria applicable to renewable fuels

The consultation also revises the role RTFO will have in maritime shipping by:

  • supporting fuels with the highest potential to deliver greenhouse gas savings in maritime industry
  • requiring that eligible maritime fuels be derived from renewable energy

Documents

Targeting net zero – next steps for the Renewable Transport Fuels Obligation

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Annex A: the role of the RTFO in domestic maritime

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Annex B: targeting net zero – next steps for the Renewable Transport Fuels Obligation: cost benefit analysis

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Published 25 March 2021
Last updated 19 July 2022 + show all updates
  1. Release of renewable fuels of non-biological origins response.

  2. The government response and cost-benefit analysis for next steps for the RTFO has been published.

  3. Response form added.

  4. First published.