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Renewable Energy: Transport

Volume 485: debated on Thursday 18 December 2008

To ask the Secretary of State for Transport with reference to the written ministerial statement of 13 November 2008, Official Report, columns 66-7WS, on the Draft Renewable Transport Fuel Obligations (Amendment) Order 2009, (1) if he will reverse his plans to reduce the level of the obligation for the 2009-10 obligation period following the discovery of the drafting error in the 2007 Order; (244545)

(2) if he will provide financial compensation for biofuel producers materially affected by the drafting error in the 2007 Order.

Due to a discrepancy identified in the RTFO Order 2007 (SI 3072) an amount of fossil fuel cannot be considered when calculating how much renewable fuel a supplier is obligated to supply. However, the impact of this problem on the volumes of biofuel used and the extent of any shortfall in the UK will not be known until after the end of this obligation year.

The Government are currently consulting on the proposed solution to rectify the discrepancy issue for the next obligation year, as part of a consultation on slowing down the rate of increase of obligation levels. The consultation closed on 17 December and we shall take into account responses about the possible effects of the discrepancy on biofuel producers.