Transport minister calls on industry to bring forward tomorrow's biofuels technologies
Tue 03 January 2006
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Transport Minister Dr Stephen Ladyman said that the Renewable Transport Fuel Obligation (RTFO) has to help bring forward tomorrow's biofuel technologies and to encourage innovation. The minister was speaking at a recent conference - “The Use of Biofuels in Transport” - organised by the Waterfront Conference Company in association with the LowCVP.
Dr Ladyman said: "No-one's saying it will be straightforward. There are real issues about how we create a system which properly rewards the environmental performance of biofuels without creating unfair market distortions and incurring the wrath of the World Trade Organisation."
He added: "What we mustn't do is try to run before we can walk. Let's remember that we've got to get the RTFO up and running by April 2008. That in itself will be a challenge, without trying to develop the details of the "RTFO mark 2" scheme which might follow it."
The minister commented that a very important issue for the medium term is how and when the Obligation should be taken above 5%. In principle, he said, the Government are keen to do this, provided they can be sure about the environmental and carbon benefits.
Dr Ladyman said that biofuels are, however, only a part of the solution to climate change emissions from the road transport sector: "We need to make sure the industry continues improving vehicle fuel efficiency, for instance...the current rate of progress is not as fast as I'd like...we have to consider ways of addressing that as part of the Review of the UK's Climate Change Programme and the normal Budget process.
"We are also looking into the possibility of incorporating surface transport into emissions trading schemes."
Any LowCVP members wanting more information about the conference discussions or presentations should contact the LowCVP Secretariat.
According to a recent parliamentary answer given by Dr Ladyman, biofuels accounted for 0.25% of total UK transport fuel sales in 2005.
Related Links
Dr Ladyman - full speech link
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