About the RTFO
The Renewable Transport Fuels Obligation (RTFO), requires suppliers of fossil fuels to ensure that a specified percentage of the road fuels they supply in the UK is made up of renewable fuels. The target for 2009/10 is 3.25% by volume. The RTFO Order as it currently stands after amendment in April 2009 is available to download here. The RTFO Amendment Order (2009), which amended the targets, is available here.
As well as obliging fuel suppliers to meet targets for the volumes of biofuels supplied, the RTFO requires companies to submit reports on the carbon and sustainability of the biofuels. It is administered by the RFA.
Most fossil fuel used for road transport in the UK is refined or imported by one of about 14 suppliers, and the RTFO puts an obligation on these companies (‘obligated suppliers'). An obligated supplier must prove to the Renewable Fuels Agency (RFA) that it has met its Obligation by producing Renewable Transport Fuel Certificates (RTFCs) at the end of the year. One RTFC is awarded for every litre of biofuel reported to the RFA, and an obligated supplier can obtain them either by supplying biofuel itself, or by trading with other biofuel suppliers.
This option to trade provides suppliers, even if they have no Obligation, with a potential revenue stream to support the production of biofuel. Suppliers may also buy out of their obligation for 15 pence per litre.
Last Modified: 23 Nov 2009
Last Modified: 1 Mar 2010