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Sep 2017

DFT Published A New Proposal For RTFO And GHG Regulation Changes

The Department for Transport (DfT) published today the main points of the government’s answer to the RTFO and GHG Regulations consultation, both closed on January 22, 2017. Like we announced two weeks ago, the DfT targets April 2018 to implement the changes.

The following points are proposed to reform the RTFO:

  • Increasing the obligation level to 7.25% vol. from April 15, 2018 to December 31, 2018, when the RTFO year will switch to calendar year.
  • Increasing the obligation level to 8.5% vol. in 2019 and 9.75% vol. in 2020.
  • Setting a sub-target for “development fuels” (presumably advanced biofuels) at 0.1% in 2019 and 0.15% in 2020.
  • From 2021, increasing gradually the obligation level to 12.4% in 2032 but exclusively through the sub-target for development fuels (see table), so the target for 1G biofuels, including UCOME and TME, would remain at 9.6% vol.
  • Setting a crop cap at 4% in 2018, reducing progressively from 2021 to 3% in 2026 and 2% in 2032.
  • Allowing renewable aviation fuels, natural gas, hydrogen and fuels that can be blended at rates of at least 25% whilst meeting EN590 or EN228 to generate RTFCs when they have been made from eligible feedstocks.
  • The level of the buy-out will be set at 80 pence per certificate.

The following points are proposed to amend the UK Motor Fuel GHG regulation:

  • Introducing a 6% GHG reduction by 2020, to be subject to the art 7a of the FQD.
  • Setting an interim target of 4% GHG reduction by 2019.
  • bringing renewable aviation fuels and renewable fuels of non-biological origin into the scheme.