The Government has supported the uptake of low carbon fuels for 15 years through its Renewable Transport Fuel Obligation (RTFO) scheme. The RTFO sets targets for the supply of low carbon fuels and sustainability criteria, which these fuels must meet. The RTFO has been highly successful in securing a market for the supply of low carbon liquid fuels in the UK.
Under current carbon budgets, low carbon fuels contribute a third of greenhouse gas (GHG) savings in the domestic transport sector. In 2022, low carbon fuel that were reported under the RTFO saved on average 82 per cent carbon emissions compared to the fossil fuels that they replaced, saving 7.2 million tonnes of CO2 emissions. In 2022, low carbon fuel made up 6.8 per cent of total road fuel supplied.
The Department plans to introduce a Sustainable Aviation Fuel (SAF) mandate from 2025, which will require at least ten per cent of UK aviation fuel to be made from sustainable sources from 2030. The Jet Zero Strategy set out that the use of SAF could contribute up to 17% of the emissions savings needed in the aviation sector by 2050.
The Department has accelerated the uptake of advanced low carbon fuels by allocating £171 million to advanced fuel demonstration projects through four competitions and is setting up a UK SAF Clearing House to support the testing and approval of advanced fuels for aviation.
The Department will also publish a Low Carbon Fuels Strategy to further support investment by setting out a vision for the deployment of low carbon fuels across transport modes up to 2050.