The Government are currently consulting on proposals to slow down the rate of increase of obligation levels under the renewable transport fuel obligation. The impact assessment which accompanies the consultation examines the potential effects on investment in biofuel production in the UK only.
This assessment concluded that a slowdown, together with future European targets for biofuels, should still give an incentive to the biofuels industry to invest in new technology and domestic capacity. A 5 per cent. biofuel obligation is still proposed in 2013-14 rather than 2010-11 and the final level of investment in sustainable production is not expected to be significantly affected. However there may be differences in the short to medium term in how fuel suppliers meet the obligation.1
The views of consultees on the impact assessment and estimates of the effects on investment of the proposed slow down shall be taken into account by the Government.
Consultation on the Draft Renewable Transport Fuel Obligations, (Amendment) Order 2009, Annex D Impact Assessment; page 71.