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<p><strong> </strong></p><p>The Government takes the environmental implications of
exploiting high carbon intensity crudes very seriously and fully supports the aim
of the Fuel Quality Directive to reduce carbon emissions. We also believe that the
accounting methodology must be proportionate in the burden placed on suppliers. The
European Commission's proposals for a greenhouse gas intensity accounting methodology
to implement Article 7a failed to receive agreement in 2012, and we await the publication
of a revised proposal and impact assessment.</p><p> </p><p>The Department consulted
on measures to implement Article 7(a –e) of the Directive between March and June 2011.
The core costs envisaged in the impact assessment relate to putting in place a 6%
greenhouse gas emissions savings target to 2020, the supply of biofuels and other
compliance measures required to achieve these reductions. The costs of delivering
such measures are subject to a very high degree of uncertainty given that EU negotiations
on key elements for implementing the Directive have not yet concluded. Based on a
range of provisional assumptions, it was estimated that, relative to the cost of policy
currently in place, the impact in 2020 would be an increase of 0.5 pence per litre
on petrol and 2.5 pence per litre on road diesel. A full analysis is presented in
the impact assessment published on 10 March 2011 which can be found at:</p><p><a href="https://www.gov.uk/government/consultations/consultation-on-proposals-to-implement-articles-7a-to-7e-of-the-eu-fuel-quality-directive-fqd-directive-98-70-ec-as-amended-by-2009-30-ec-requiring-suppliers-to-reduce-the-lifecycle-greenshouse-gas-intensity-of-transport-fuels-and-introducing-sustaina"
target="_blank">https://www.gov.uk/government/consultations/consultation-on-proposals-to-implement-articles-7a-to-7e-of-the-eu-fuel-quality-directive-fqd-directive-98-70-ec-as-amended-by-2009-30-ec-requiring-suppliers-to-reduce-the-lifecycle-greenshouse-gas-intensity-of-transport-fuels-and-introducing-sustaina</a>.</p><p>
</p><p>The UK has not yet set a trajectory for biofuel supply to meet the 6% greenhouse
gas emissions savings target required in 2020. Any associated increase in targets
for the supply of biofuel and other compliance measures would be the subject of a
further consultation and a revised impact assessment which would carefully consider
the impact on the motorist and the environment.</p><p> </p><p> </p>
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