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<p>The Low Carbon Fuel Strategy, which the Department intends to publish later this
year, will set out possible scenarios for the deployment of low carbon fuels across
transport sectors out to 2050.</p><p> </p><p>The Government supports the production
of low carbon fuels through the Renewable Transport Fuel Obligation (RTFO) and published
a cost benefit analysis for the RTFO in 2021, but it has not undertaken a formal assessment
of the impact of cost of different fuel types or the level of usage for logistics
businesses.</p><p> </p><p>The Department recognises the opportunities for using higher
blend renewable fuels, including drop in fuels, in maximising greenhouse gas savings
when used in existing vehicles. As set out in the Transport Decarbonisation Plan,
the Department is exploring potential measures to remove market barriers for use in
the logistics sector.</p>
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