Government raises target for use of biofuels in vehicles

The Government today set a higher than expected target for the use of biofuels in UK vehicles for 2009-10.

Suppliers will be required to source 3.25% of their fuels from sources such as palm oil and sugar beet, Transport Minister Lord Adonis said today.

The Government had initially consulted on setting a 3% limit, but in a statement to Parliament Lord Adonis said he was setting the slightly higher target in response to a legal loophole which meant less renewable fuel was supplied than intended.

Ministers had decided the rate at which biofuels are introduced to the UK under the Renewable Transport Fuel Obligation (RTFO) would be slowed after the Gallagher Review last year raised serious questions about their environmental benefits.

The report recommended a 3% level for 2009-10, rising to 5% by 2013-14. Under its initial proposals the Government had set a 5% target for 2009-10.

Lord Adonis said: "The Government has now decided to introduce legislation setting an obligation level for 2009-10 of 3.25%, which is 0.25% higher than the Gallagher recommendation and therefore maintaining the planned increases in line with the Gallagher recommendations to reach 5% in 2013-14."

He said the decisions reflected concerns raised about the legal definition of hydrocarbon fuels in the RTFO order.

Lord Adonis said: "That definition excludes any fossil fuel which is blended with renewable fuel before the duty point.

"The result is that less fossil fuel than was intended is taken into account in calculating suppliers' obligations, and therefore less renewable fuel is required to be supplied than was intended."

Lord Adonis said he also intends to class biobutanol and renewable diesel as renewable fuels under the RTFO scheme.

Friends of the Earth biofuels campaigner Kenneth Richter said: "By increasing the amount of biofuel being added to our petrol, the Government is ignoring clear evidence that growing crops for fuel can make climate change worse.

"As biofuels replace food crops, more forests have to be cleared for farmland - releasing massive amounts of carbon dioxide and trashing the world's rich natural diversity.

"Biofuels are a distraction from the real solutions needed to reduce emissions from road transport.

"Ministers should put the biofuels obligation on hold and concentrate on improving public transport, while encouraging the motor industry to develop greener cars."