The Renewable Transport Fuel Obligation and the SAF Mandate will need to prevent fuels and chemical precursors to benefitting from multiple financial incentives.  The DfT consulted on how it should achieve that.  See the consultation document here.  The RFTA does not support fuels benefitting from multiple incentives, and favours the outcome that would be achieved by Option 2.  However, we recognise the challenges that Option 2 presents.  With reluctance, therefore, we support Option 1-  with some provisos.  We also present an alternative approach which we feel would be more effective.

We ask DfT to state (at every opportunity):

  • that fuels supplied under the RTFO must not have benefitted from prior support (and that prior support includes obligations, direct price schemes and tax incentives aimed at increasing renewable energy production
  • that the RTFO legislation prevents this when it comes to obligations and direct price schemes ineligible for certificates, and that the Trade Remedies Authority is expected to impose tariffs to protect domestic manufacturers from unfair competition from the import of subsidised fuel, and that
  • that DfT will work proactively with the Trade Remedies Authority to achieve its objective.

Click here to read our response.