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<p>The United Kingdom’s Renewable Transport Fuel Obligation (RTFO) scheme, introduced in 2008, is not dissimilar to the Biofuel Obligation Scheme (BOS), introduced in the Republic of Ireland in 2010.</p><p> </p><p>The RTFO scheme has been successful for more than a decade in supporting a market for biofuels and is continuously reviewed to ensure that it delivers cost-effective carbon savings. Biofuel suppliers operate in a global market and the Department considers changes to the RTFO in the context of support schemes offered by the UK’S global partners. As the administrator of the RTFO, the Department also participates in the Renewable Fuels Regulators Club, which includes counterparts in the Republic of Ireland, and facilitates the sharing of best practice.</p><p> </p><p>The tax treatment of fuels will not form part of our post implementation review of the RTFO scheme later this year. As with other taxes, His Majesty's Treasury is responsible for fuel duty, which is kept under review. There are currently no plans to change the tax treatment of biofuels. The Chancellor takes decisions on tax rates at fiscal events.</p> |