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The Renewable Transport Fuel Obligation (RTFO)  is the UK's current biofuel policy instrument. The RTFO is monitored by the Renewable Fuels Agency (RFA) and came into operation in April 2008 with the aim of promoting biofuel usage in the UK. 

The initial RTFO target for inclusion of renewable biofuel in all UK road transport fuel was set at 5% for 2010. However, the UK targets have changed and a "slow down" (see below) has been implemented so that the 5% target will now be achieved in 2013/14.

The new RTFO targets for the next five years were implemented in April 2009.  These new levels are based on the recommendations of the recent independent Gallagher Review looking into the indirect effects of biofuel production, commissioned by previous Transport Secretary Ruth Kelly.  One of the main recommendations to come from the Review was that the rate of increase of the RTFO be slowed down to take into account concerns of sustainability.

The RTFO operates through a system of certification, whereby certificates are issued to companies based on their renewable fuel sales.  The certificates are then to be tradable on the market so that all companies may achieve their obligatory targets, or if not pay a "buy-out" penalty price of 15ppl.

For more information on the RTFO: Click here 

           The yearly RTFO biofuel inclusion targets are as follows:

RTFO Year

Old Target          [% by volume] New Target          [% by volume] Gallagher Target                [% by volume]  
2008/09  2.50 - -
2009/10 3.75 3.25 3.00
2010/11 5.00  3.50 3.50
2011/12 - 4.00 4.00
2012/13 - 4.50 4.50
2013/14 - 5.00 5.00

     For the latest RFA RTFO reports: Click here 

Currently, the government is consulting on ways to bring the RTFO in line with the Renewable Energy Directive (RED; see EU policy).

EU policy:  Click here 

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