Government proposes RTFO delay following Gallagher Report publication
Tue 08 July 2008
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The Government has announced proposals to slow down the rate of introduction of biofuels through the Renewable Transport Fuels Obligation (RTFO). The Transport Secretary, Ruth Kelly, said that she intends to consult on the proposal to delay the introduction of the requirement for biofuels to comprise 5% of road transport fuel from 2010/11 to 2013/14. The Government's announcement follows the publication of the 'Gallagher Review' by the Renewable Fuels Agency which expresses concern about the impacts of biofuels growth and advocates a slowdown in the rate of their introduction.
The Transport Secretary also called for a further review of the UK's progress on the sustainability of biofuels in 2011/12.
She said that the Government believes that the overall EU target of 10% renewable transport fuels by 2020 can remain an overall objective but only subject to clear conditions on sustainability and taking into account indirect, as well as direct, effects on land use.
The Gallagher Review, which was completed by the independent Renewable Fuels Agency (RFA) at the request of the Government, concluded that there is a future for a sustainable biofuels industry but that feedstock production must avoid agricultural land that would otherwise be used for food production.
The report says that biofuels growth has contributed to rising food prices for some commodities - such as oil seeds - where there is competition between food and fuel uses. It says that biofuel demand is displacing some existing agricultural production and, if left unchecked, will reduce biodiversity and may even cause an increase in greenhouse gas emissions rather than savings.
The report calls for a significant slowdown in the rate of introduction of biofuels until adequate controls to address displacement effects are implemented and are demonstrated to be effective. It proposes that biofuels production must be focused on idle and marginal land and increasingly use wastes and residues.
In a wide-ranging set of recommendations, The Gallagher Review says that the optimum policy approach would be to base incentives and targets for biofuels on the greenhouse gas savings they produce. The report emphasises the importance of ensuring consistency in European and global policy approaches.
It also proposes that carbon and sustainability certification used for biofuels should be extended to all agricultural activities over time.
In a statement to Parliament, Ruth Kelly said: "Given the uncertainty and potential concerns Professor Gallagher sets out, I believe it is right to adopt a more cautious approach until the evidence is clearer about the wider environmental and social effects of biofuels. We also need to allow time for more sustainable biofuel technologies to emerge."
To view the Gallagher Review and the Government's response, follow the associated links.
Note: Professor Ed Gallagher will be speaking about the biofuels review at the LowCVP conference on 23 July. (For full details see link.)
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