Biofuels
Transport
Simon Hughes (Bermondsey and Old Southwark, Liberal Democrat)
To ask the Secretary of State for Transport if he will assess the effectiveness of the implementation of the Renewable Transport Fuel Obligation mechanism for small and medium-sized enterprises providing biofuel made from UK recycled food waste products.
Norman Baker (Parliamentary Under Secretary of State (Regional and Local Transport), Transport; Lewes, Liberal Democrat)
The amended Renewable Transport Fuel Obligations Order 2007 provides additional support to biofuels made from waste by awarding two renewable transport fuel certificates (RTFCs) for each litre supplied. This means that biofuels made from waste now receive double the incentive provided for biofuels made from crops which meet mandatory sustainability criteria.
The value of RTFCs is determined by the market. Demand and prices will fluctuate during the year for various reasons, including the price of oil. We will be reviewing double certification for biofuels made from waste in 2013 to ensure that it is having a positive effect on the biofuel industry.