Wednesday 27th March 2013

(11 years, 3 months ago)

Lords Chamber
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Earl Attlee Portrait Earl Attlee
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I agree with much of what the noble Lord says. There are what are termed “advanced biofuels”, which do not have a land-take impact—certainly not in terms of taking land out of agricultural use or requiring a reduction in rainforest. Moreover, they do not have an impact on food production. Consideration is being given to greater incentives for the production of advanced biofuels.

Earl Cathcart Portrait Earl Cathcart
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My Lords, will increasing the use of biofuels increase or decrease the price at the pumps?

Earl Attlee Portrait Earl Attlee
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My Lords, my noble friend asks an important question. The obligation system increases the price of fuel at the pump. It is, in effect, a hidden subsidy, and it works in a very similar way to the renewables obligation for electric power.