Biofuels sustainability label study published
Fri 27 June 2008
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A LowCVP study into the potential for the introduction of a voluntary sustainability label for biofuels has concluded that while there are challenges, the development and operation of a label is feasible. While some demand was shown to exist for such a mechanism, the study concluded that the time is not yet appropriate for its introduction.
At present, future legislative requirements addressing the sustainability of biofuels through the Renewable Energy Directive are under discussion and uncertain. Should legislative requirements fall short of addressing key sustainability issues, scope for a mainstream label to cover these gaps exists or a niche label for a ‘gold standard’ could be developed.
Ultimately, the Renewable Fuels Agency could own the label. Consumer research undertaken for the study in January 2008 demonstrated that consumers have a low level of awareness [of the Renewable Transport Fuel Obligation] and understanding of biofuels but they reported a high level of interest in a sustainability label and a willingness to pay for such a guarantee. In general, fuel retailers remain unconvinced by survey results that indicate a willingness to pay owing to past experiences with low sulphur diesel, unleaded fuel and other differentiated products. There is also insufficient buy-in from fuel retailers to support immediate steps in the development of a voluntary label.
The study found that there would be challenges associated with supply logistics and the ownership and operational arrangements of retail outlets which would make the introduction of a biofuels sustainability label complicated. However, it concluded that these challenges could be surmounted.
The LowCVP recommended that the possibility of a label is reviewed by the Renewable Fuels Agency when greater certainty on the scope of forthcoming legislation and the effectiveness of the RTFO carbon and sustainability reporting scheme, only recently implemented, is known.
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