Biodiesel

Lord Bradshaw Excerpts

Tuesday 18th October 2011 Lords Chamber

[Earl Attlee]

My Lords, Treasury Ministers confirmed at the 2011 Budget that the duty differential for biodiesel produced from used cooking oil will end on 31 March 2012, as was always intended. It is appropriate that support for waste-derived biofuels in transport will be provided through double rewards as part of the renewable transport fuels obligation. That, of course, has a sharper sustainability focus. By providing two renewable transport certificates per litre of waste-derived fuel, the UK is moving away from the guaranteed return of 20p provided by the duty differential for biodiesel produced from used cooking oil and moving towards an environment where the competitive market decides the price that will be awarded for each renewable transport fuel certificate. But each RTFC will still be worth around 20p.

[Lord Bradshaw]

Will the noble Earl turn his mind to the fact that the renewable transport fuel certificates, to which he has referred, are tradable assets? They have been often been of no value at all. Anyone investing money in this young industry of processing used cooking oil and other waste products face the possibility that they are being asked to invest money with no guarantee of a return whatever.

[Earl Attlee]

My Lords, my noble friend is absolutely right. RTFCs were traded at a nil value but that was because of an error in the drafting of the original RTFO by the previous Government. That problem has been rectified and will not recur.