Logistics: Alternative Fuels

(asked on 22nd May 2023) - View Source

Question to the Department for Transport:

To ask His Majesty's Government what assessment they have made of the impact of the cost of low-carbon fuels, compared to diesel and kerosene, on their usage by logistics businesses.


Answered by
Baroness Vere of Norbiton Portrait
Baroness Vere of Norbiton
Parliamentary Secretary (HM Treasury)
This question was answered on 2nd June 2023

The Low Carbon Fuel Strategy, which the Department intends to publish later this year, will set out possible scenarios for the deployment of low carbon fuels across transport sectors out to 2050.

The Government supports the production of low carbon fuels through the Renewable Transport Fuel Obligation (RTFO) and published a cost benefit analysis for the RTFO in 2021, but it has not undertaken a formal assessment of the impact of cost of different fuel types or the level of usage for logistics businesses.

The Department recognises the opportunities for using higher blend renewable fuels, including drop in fuels, in maximising greenhouse gas savings when used in existing vehicles. As set out in the Transport Decarbonisation Plan, the Department is exploring potential measures to remove market barriers for use in the logistics sector.

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