Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what his policy is on introducing tax relief for hydrogenated vegetable oil for industries that lost access to red diesel in April 2022.

Hydrotreated vegetable oil (HVO) is eligible for Renewable Transport Fuel Certificates under the Renewable Transport Fuel Obligation (RTFO), and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.

The Government uses the RTFO to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. The RTFO has been highly successful in supporting a market for renewable fuel since its introduction in 2008. Renewable fuels supplied under the RTFO currently contribute a third of the savings required for the UK’s transport carbon budget.

As with all taxes, the Government will keep the tax treatment of HVO under review.