Draft Motor Fuel (Composition and Content) and Biofuel (Labelling) (Amendment) (No. 2) Regulations 2021

(Limited Text - Ministerial Extracts only)

Wednesday 14th July 2021 General Committees

[The Parliamentary Under-Secretary of State for Transport (Rachel Maclean)]

I beg to move,

That the Committee has considered the draft Motor Fuel (Composition and Content) and Biofuel (Labelling) (Amendment) (No. 2) Regulations 2021.

It is a pleasure to serve under your chairmanship, Mr Robertson. The statutory instrument would introduce E10 as standard petrol across Great Britain, while ensuring that the current E5 grade remains available for those who need it. E10 petrol contains up to 10% renewable ethanol—double the amount that can be blended in today’s E5 grade. This change is a crucial step to maximising the biofuel blending capacity in the UK fuel market, driving transport decarbonisation while supporting the UK’s biofuel and agricultural sectors.

Introducing E10 allows us to cut carbon emissions from cars, motorbikes and other petrol-powered equipment in use today simply by increasing the limit to which renewable fuel can be blended into standard petrol. It is one of the very few measures available to us today with an immediate impact, providing the basis for a step change in renewable fuel blending. E10 petrol is a proven fuel that is already used across the world, including across Europe and the United States. We also have a valuable domestic bioethanol industry that would benefit from increased demand. Indeed, following our policy announcement, one large facility operator has already announced that it is recommencing production.

Such facilities play significant roles in their local economies, employing hundreds of skilled workers directly and supporting thousands of jobs in the wider community. That community includes the agricultural sector, with locally grown feed wheat used to produce ethanol, while by-products such as animal feed are supplied to livestock farmers in place of soy imports. It is vital to support those industries as we endeavour to build back greener, with low-carbon industrial hubs crucial to our path towards net zero by 2050.

Introducing E10 is part of a wider set of measures to encourage renewable fuels. We announced today ambitious plans to increase renewable fuel targets under the renewable transport fuel obligation, alongside our transport decarbonisation plan. Renewable fuel targets have risen over the past three years, with fuel suppliers now blending very close to the 7% biodiesel limit for road diesel and the 5% bioethanol limit for standard petrol. The draft regulations will unblock additional capacity to increase blending in the fuels that we all use every day, with only a short transition period. Although other renewable fuels will also be required to increase carbon savings in the medium to longer term, moving to E10 is the only immediately viable next step.

Although 95% of all petrol vehicles can use E10, some older vehicles cannot. That is why the instrument includes provisions to keep the current E5 petrol available in the higher octane super grade. Together with wider exemptions for some remote areas, that ensures that petrol suitable for every vehicle will remain available across the country. We also launched a comprehensive communications campaign, involving local radio, roadside posters, social media and information at forecourts. That informs motorists of the changes to petrol this summer and directs vehicle owners to our online compatibility checker, ensuring that everyone can be clear on the right fuel for their vehicle or equipment.

The SI also makes amendments that are required following our departure from the European Union. We have replaced references to EU legislation with references to domestic legislation to ensure the ongoing operability of our fuel standards. In proposing the statutory instrument, the Department has carefully considered a balance of interests. It recognises the need to maximise our efforts to decarbonise vehicles on the road today and support our domestic renewable fuel industry, while maintaining access to a suitable petrol grade for all. I believe that introducing E10 petrol this September ahead of RTFO increases planned for January strikes that balance, and I commend the statutory instrument to the Committee.

--- Later in debate ---

[Rachel Maclean]

I thank the hon. Lady for her comments. It is a shame that she is abstaining, but nevertheless we will push forward with our ambitious plans, because this is a major step along the way to our world-leading plans to decarbonise the entire transport sector. I am very happy to have a detailed discussion with her about some of the issues that she raised, but I assure her that some of the comments that she made about deforestation are wide of the mark.

Let me turn to the detail. The hon. Lady mentioned the percentage allowed in E10. As I am sure she is aware, the existing industry standard for E10 allows for an ethanol content between 0% and 10%. By setting a 5.5% limit in legislation we ensure that the fuel blend will contain more renewable ethanol than existing blends and has to be marketed as E10, levelling the playing field across the sector. Bioethanol blending will be driven by the RTFO, as she referenced, which sets targets for overall biofuel supply. We therefore expect bioethanol to be blended at levels higher than 5.5%, particularly following the increase of targets.

The hon. Lady mentioned sustainability. We have one of the most robust set of measures in the world to ensure that our fuels are sustainable and do not have any adverse consequences, such as those that she referenced. Waste-derived biofuels make up over two thirds of renewable fuel supplied under the RTFO, and the share of biofuels from feedstocks associated with a high risk of leading to indirect land use change, including deforestation, in particular oilseeds such as palm, soy or rapeseed, is minimal in the UK. Our crop cap is in fact one of the tightest in Europe. It is currently set at 4% and will decrease to 2% by 2032.

The hon. Lady mentioned some of the issues around charging infrastructure. I assure her that the transport decarbonisation plan will be available to view on gov.uk. I am informed that it will be uploaded within the next few minutes, or very shortly. I very much hope that it will be there. When she reads it, I am sure that she will have many questions, and I am happy to answer them all. I remind her that our electric vehicle charging infrastructure network is out of scope for today’s debate, but it is increasing by 10% year on year. We already have one of the largest networks of charging infrastructure on the strategic road network in Europe, and it is increasing at a rate of knots.

I thank the hon. Lady for her consideration of these points. This is a small but very important step. As we transition to zero-emission vehicles, it is vital that we do not ignore the measures available to us today to reduce emissions. The SI does that by doubling the amount of renewable fuel that can be blended. It supports our vital domestic carbon industry. Securing such facilities will help to foster new investment and secure many jobs to build a world-class renewable fuel sector in the UK, so it is a shame that Labour is not supporting new jobs in parts of the country where this is a new industry. This measure is part of wider policy proposals to reduce emissions. Timing is very important. We need to ensure that we can roll this out in as smooth a way as possible before the increases to our renewable fuels targets in January. I hope that the Committee will join me in supporting the statutory instrument.

Question put and agreed to.