What is the Renewable Transport Fuel Obligation? How will it work?
The RTFO will require suppliers of fossil fuels to ensure that a proportion of the road fuels they supply in the UK comprise green fuels like biofuels. Certificates can be claimed when renewable fuels are supplied and fuel duty is paid on them. At the end of the obligation period, these certificates may be redeemed to the RTFO Administrator to demonstrate compliance. Certificates can be traded. If obligated suppliers don’t have enough certificates at the end of an obligation period they have to ‘buy-out’ the balance of their obligation by paying a buy-out price. The buy out price will be 15 pence per litre in the first two years.
