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<p>The Department’s Renewable Transport Fuel Obligation Guidance version 2020, Part
One and Part Two, still provides that “derogation c.” applies. The Department has
no current plans to remove the derogation, but it is now in Part One, paragraph 3.43,
of the guidance.</p><p> </p><p>Non-fossil fuels, including renewable hydrogen, are
incentivised under the Renewable Transport Fuel Obligation (RTFO), a certificate trading
scheme. Renewable hydrogen is categorised as a development fuel, which potentially
benefits from a higher tradeable certificate value.</p><p> </p><p>At the end of March,
we published a document “Decarbonising Transport: Setting the Challenge”, kicking
off our work on preparing a Transport Decarbonisation Plan. This holistic and cross-modal
approach to decarbonising the entire transport system, including public transport,
will set out a credible and ambitious pathway to delivering transport’s contribution
to carbon budgets and meet net zero by 2050.</p>
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