Government position on updating the RTFO published

Wed 14 July 2021 View all news

The Dept for Transport has set out the changes it intends to make to the Renewable Transport Fuel Obligation (RTFO) following the recent consultation. 

It confirms the Government's intention to: 

  • Increase the main target for the supply of renewable fuels by 5%. This will increase targets from 9.6% of fuels for road transport and non-road mobile machinery to 14.6% by 2032. This is higher than originally proposed and reflects stakeholder calls for increased ambition. The Government says it is confident that this increase can be achieved without compromising environmental sustainability. 
  • Supporting the use of renewable hydrogen in new transport modes, including, maritime, rail, and loading and construction vehicles.
  • Updating the sustainability standards applied to renewable fuel to ensure that as we increase demand for renewable fuels, we continue to safeguard the environment.

Subject to the parliamentary process, DfT says that it is planning to make the changes listed above in time for the start of the next obligation year (ie by 1 January 2022). 

The response also sets out the Government's commitment to supporting recycled carbon fuels (RCFs) under the RTFO. RCFs are fuels made from fossil-derived wastes that cannot be avoided, reused or recycled.

The response specifically commits the Government to including RCFs made from refuse derived fuel and waste industrial gases. Adding incentives for the supply of these fuels will help to drive investment in UK production facilities for both road and aviation fuels, it says.


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