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<p>The Government consulted on a range of options for limiting the contribution from
crop based biofuels towards the renewable fuel target for transport, from zero to
the maximum seven per cent allowed under EU Directive 2015/1513. The consultation
and the Government response are available at: <a href="https://www.gov.uk/government/publications/renewable-transport-fuel-obligations-order-government-response"
target="_blank">https://www.gov.uk/government/publications/renewable-transport-fuel-obligations-order-government-response</a>
and include analysis of the costs and benefits of the proposals, including the impacts
on the competitiveness of UK industry through an estimate of the gross value added
to the UK economy by the biofuels industry under the proposed amendments.</p><p> </p><p>We
intend to cap the contribution from crop-based biofuels at four per cent in 2018,
reducing to three per cent in 2026 and two per cent in 2032. Reducing the contribution
from crop-based biofuels in this way will signal that we want to see future investment
focus on the most sustainable fuels made from wastes and residues, while ensuring
a continuing market for the UK’s existing bioethanol producers. According to research
published by the European Commission in 2015, titled “The land use change impact of
biofuels consumed in the EU, Quantification of area and greenhouse gas impacts”, crop
biofuel usage at 7% of transport energy could result in a net increase in greenhouse
gas emissions.</p><p> </p><p>Subject to Parliamentary approval, the legislation providing
for these changes to the Renewable Transport Fuel Obligation (RTFO) will provide for
a review to ensure the policy aims are being met. If required after the review further
amendments could then be proposed.</p>
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