The government has been urged to extend the Renewable Fuel Transport Obligation (RFTO) beyond 2020 in order to boost biofuel production and help reduce greenhouse gas emissions from fossil diesel.
In a consultation response, the Gas Vehicle Network (GVN), which represents companies involved in gas-derived fuel production and gas-powered HGVs, said the current plans would see subsidies awarded to CNG and LNG end on 31 December.
The GVN told the Department for Transport (DfT): “The feedback received from our member companies, particularly those owning and operating filling stations for gas fuels, is that the obligation and measures to incentivise GHG savings have driven desirable behaviour in the fuel supply industry and have boosted the development of biofuel production in the UK.
“If the GHG saving obligation is allowed to expire at the end of this year, one of the key incentives for transport biofuels which deliver high levels of GHG emission savings will disappear.”
The GVN said road transport emissions have increased since 1990 while overall emissions have fallen by 42% and so an increase in targets coupled with ‘greenhouse gas credits’ to subsidise cleaner fuels needed to continue beyond the end of the year.
Mike Foster, GVN chief executive, said: “CNG and LNG can offer savings of 15% on fossil diesel and over 80% if waste products are used to produce them.
“This is the future of road transport fuels.
“We need subsidies to support the development of production capacity and supply chains for these fuels.”
The DfT’s consultation ended on 3 May and it is now analysing feedback.
