It is currently very difficult to assess the economic impact the change in the definition of relevant hydrocarbon oil may have had on the transport industry. This is because the Renewable Fuels Agency, who collect and publish data on the supply of biofuels in the UK, will not have a complete dataset of the biofuel supplied for the reporting period 2008-09 (when the change was introduced) until later this year.
The definition of relevant hydrocarbon oil in the 2007 Renewable Transport Fuel Obligation order has now been amended so that the obligation applies to fuel suppliers as originally intended. The effect of the definition on the volume of biofuel supplied in the first obligation year (2008-09) will not be known until later this year. The Renewable Fuels Agency are expected to publish available data shortly.
The number of certificates issued under the Renewable Transport Fuel Obligation scheme that have been revoked owing to the detection of fraud is zero. The number revoked due to the provision of inaccurate information to the Renewable Fuels Agency as administrator of the scheme is 66,668. This represents a mere 0.005724 per cent. of total certificates.
Under the EU Fuel Quality Directive (FQD) suppliers of fuel will be required to achieve an overall 6 per cent. greenhouse gas (GHG) saving by 2020 for the fuel they supply compared against 2010 levels. We shall be consulting with stakeholders about how best to implement the FQD requirements into a UK scheme and we shall consider how targets for GHG savings for fuel suppliers might play a role.
Following the Renewable Energy Directive being adopted in March 2009, officials at the Department for Transport established a stakeholder advisory group with representation from key industry and non-governmental organisations, as a platform for regular consultation on policy options arising from the implementation of this directive. This will include the preparation of the National Action Plan, once the Commission's adopts a template setting out reporting requirements by the end of June 2009.
Under the EU Renewable Energy Directive there is a specific target for the share of renewable energy use in UK transport by 2020. Following full public consultation, the Department for Energy and Climate Change are due to publish the Government's Renewable Energy Strategy this summer. This will include an assessment of the potential contribution that electric vehicles may have toward the transport target based on uptake scenarios from the recent Arup-Cenex study. Due to the uncertainty around hydrogen vehicle uptake by 2020 and the potential impact toward the transport target, these will not be assessed.
Under the Renewable Energy Directive, the UK is required to submit a completed National Energy Action Plan to the European Commission by 30 June 2010 for their assessment. The Commission will then publish all member states' action plans in their website, alongside any recommendations arising from their assessment. Statements will be made in accordance with due parliamentary process, as and when required.
The likelihood of reaching an obligation level of 3.25 per cent. for the current obligation year will depend on a number of factors including the availability and cost of biofuels. The 20 pence per litre duty incentive for biofuels will remain until April 2010 and this is likely to continue to incentivise their use during this obligation year.
Under the Renewable Transport Fuel Obligation (RTFO) suppliers of fuel are required to complete reports on the environmental performance of the biofuels they supply. Biofuels supplied under the first nine months of the RTFO achieved average greenhouse gas savings of 46 per cent. against the Government's indicative target of 40 per cent. The UK has also been instrumental in lobbying for mandatory biofuels sustainability standards across the European Union. These will come into force by December 2010, as a result of the recent EU Fuel Quality and Renewable Energy Directives.