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<p>Under the Renewable Transport Fuel Obligation (RTFO) renewable fuel used in mobile
generators is eligible for Renewable Transport Fuel Certificates (RTFCs). Suppliers
of fossil fuel used in mobile generators and other forms of non-road mobile machinery
are also subject to an obligation to ensure renewable fuels are supplied in the UK.
Suppliers of fossil fuels used in aviation are not currently obligated under the RTFO,
but renewable fuels used in the sector are potentially eligible for RTFCs. The Department
has no plans to limit the supply of renewable fuel to mobile generators for the purposes
of increasing the availability of renewable fuels in the aviation sector.</p><p> </p><p>In
July the Department launched a consultation on proposals for a UK sustainable aviation
fuels (SAF) mandate requiring jet fuel suppliers to blend an increasing proportion
of SAF into aviation fuel from 2025. The consultation closes on 19 September. The
modelling supporting the consultation has taken into consideration the interactions
between fuels needed for road, non-road mobile machinery and aviation, and the availability
of sustainable feedstocks and renewable fuels. A summary of responses including next
steps will be published in due course and the modelling will be updated considering
evidence from the consultation.</p><p> </p><p>Policy development on the RTFO takes
into account competing demands for renewable fuel resources across different transport
sectors. It is also informed by regular reviews to ensure the scheme is delivering
cost effective carbon savings in support of UK carbon budgets. It is widely understood
that the availability of biomass used to produce biofuels is limited. So, these finite
resources need to be deployed in sectors of the economy where greater greenhouse gas
savings can be achieved, or sectors that have fewer decarbonisation options, such
as aviation. The renewable fuel market will transform and adjust through this decade
and beyond. As we transition to electric vehicles, some biomass and other sources
of renewable fuel will be freed up to accommodate increased use in SAF.</p><p> </p><p>Biofuels
are traded in a competitive global market and the RTFO certificate trading scheme
includes several measures to ensure costs passed on to the consumer are minimised
and targets for the supply of renewable fuels are met. For example, the RTFO scheme
includes a buy-out mechanism. The buy-out price, which was reviewed and updated last
year, is set at a level which ensures that in normal market conditions there is a
strong commercial incentive for suppliers to discharge their obligation through the
supply of renewable fuels. Suppliers of fossil fuels to the non-road mobile machinery
and diesel road vehicle sectors therefore have a strong incentive to meet their obligations
under the RTFO through ensuring the supply of renewable fuels.</p><p> </p><p>There
are no direct benefits to the UK public of improved air quality in international airspace,
defined as airspace which is outside of the standard state territorial limits. Studies
have shown that NOx emissions from aircraft above 1,000 feet are unlikely to have
a significant impact on local air quality. However, on top of the carbon emissions
reductions and economic benefits associated with SAF use and production, there is
growing evidence that SAF also reduces sulphur dioxide and particulate matter emissions.
Thereby improving local air quality during take-off and landing, as well as other
non-CO2 impacts of aeroplanes, including contrails.</p>
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