Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will amend the Biofuels and other Fuel Substitutes Excise Notice 179e to include Hydrotreated Vegetable Oil from renewable feedstocks under paragraph 5.5; and if will he make a statement.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, there are no plans at present to change treatment as the Government uses the Renewable Transport Fuel Obligation (RTFO) to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. HVO is eligible for Renewable Transport Fuel Certificates under the RTFO, and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his policy of restricting the use of rebated Hydrotreated Vegetable Oil in certain diesel-powered vehicles, whether he plans to provide support to businesses which are running down stocks of HVO, including costs of cleaning out storage tanks, in preparation for the introduction of the duty harmonisation of fuels ahead of 1 April 2022.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, there are no plans at present to change treatment as the Government uses the Renewable Transport Fuel Obligation (RTFO) to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. HVO is eligible for Renewable Transport Fuel Certificates under the RTFO, and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to his policy of restricting the use of rebated Hydrotreated Vegetable Oil in certain diesel-powered vehicles from 1 April 2022, what steps he is taking to to introduce a harmonisation period to avoid potential pressures on fuels supplies.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, there are no plans at present to change treatment as the Government uses the Renewable Transport Fuel Obligation (RTFO) to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. HVO is eligible for Renewable Transport Fuel Certificates under the RTFO, and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of potential implications for respiratory health of restricting the use of rebated Hydrotreated Vegetable Oil for use in certain diesel-powered vehicles, vessels and other appliances from 1 April 2022.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, there are no plans at present to change treatment as the Government uses the Renewable Transport Fuel Obligation (RTFO) to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. HVO is eligible for Renewable Transport Fuel Certificates under the RTFO, and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential environmental implications of restricting the use of rebated Hydrotreated Vegetable Oil in certain diesel-powered vehicles, vessels and other appliances from 1 April 2022.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
At Budget 2020, the Chancellor announced that he will remove the entitlement to use rebated fuel from most sectors from April 2022. This will more fairly reflect the negative environmental impact of the emissions they produce and help to ensure that the tax system incentivises the development and adoption of greener alternative technologies.
During the consultation period, the Government engaged directly with a wide variety of organisations, including affected sectors and fuel suppliers, to discuss these tax changes. HMRC have published interim guidance on the implementation of the changes to the tax treatment of rebated fuel, which is available at:
www.gov.uk/government/publications/changes-to-rebated-fuels-entitlement-from-1-april-2022
The Government has not announced any changes to the treatment of hydrotreated vegetable oil (HVO) and so it will continue to be taxed at the same rate as diesel and required to be marked if supplied for rebated use. The rebated rate applies to qualifying uses, not to specific fuels, so sectors losing their entitlement will no longer benefit from the rebate regardless of what fuel they use.
As with all taxes, the Government will keep the tax treatment of HVO under review. However, there are no plans at present to change treatment as the Government uses the Renewable Transport Fuel Obligation (RTFO) to incentivise the use of low carbon fuels and reduce emissions from fuel supplied for use in transport and non-road mobile machinery. HVO is eligible for Renewable Transport Fuel Certificates under the RTFO, and is eligible to receive twice the reward in certificates under this scheme where it is produced from waste.
Asked by: Andrew Bridgen (Independent - North West Leicestershire)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether his Department will offer support to local authorities replacing conventional diesel with HVO fuel to run their vehicle fleet.
Answered by Trudy Harrison
The Renewable Transport Fuel Obligation (RTFO) certificate trading scheme is successfully supporting a market for low carbon fuels in the UK, including biodiesel. Hydrotreated vegetable oil (HVO) is a type of biodiesel. Those supplying HVO for use in road vehicles in the UK, and which meets sustainability criteria, are eligible for reward under the RTFO scheme.
There is no funding programme specifically for local authorities switching to fuel their existing fleets with HVO, and there are no current plans to introduce such a programme. The primary support for the wider deployment of HVO is the RTFO scheme, which provides a competitive market for a broad range of low carbon fuels.
Local authorities are well placed to determine how best to decarbonise their vehicle fleets. The Department is supporting this through a grant provided by the Energy Savings Trust. This provides tailored outreach advice to local authorities in support of the development and implementation of their own transport decarbonisation strategies, including advice on the decarbonisation of their own vehicle fleets. Later this year the Department will also publish a transport decarbonisation toolkit for local authorities, which will provide guidance to support local areas to deliver more sustainable transport measures including decarbonising their own fleets.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what plans he has to require the operators of diesel locomotives employed on HS2 construction work to use renewable diesel instead of fossil diesel to improve air quality and reduce CO2 emissions along the route of HS2.
Answered by Andrew Stephenson
HS2 has a Strategic Objective to design, build and operate HS2 to reduce carbon. The project is committed to limiting its environmental effects to those reported in the Environmental Statement.
Air quality emission requirements have been set for all construction vehicles and plant & machinery, and targets are in place to go beyond these requirements as technology improves. Deployment of low and zero carbon emitting equipment, including the use of fully electric, solar, hybrid and hydrogen technologies, continues across all HS2 sites.
HS2 Ltd is actively working with its contractors and supply chain to develop evidence in low carbon alternatives (hybrid, electric, biofuels, hydrogen, etc.) as a replacement for conventional diesel across its works (including on-road, plant and machinery as well as movements of material by rail). These innovations are aimed at building a better understanding of alternative fuels and technologies. As evidence is built, results will continue to be shared across the construction industry and other sectors.
HS2 Ltd continues to challenge its contractors and supply chain to take up cleaner technologies, fuels and materials where independent evidence on the benefits exist. The majority of the UK’s Rail Freight Operating Companies are part of that supply chain and are actively engaged in testing and developing their fleet in regard to safe acceptance of such alternatives, together with ensuring biofuels used are in line with the Renewable Transport Fuel Obligation, which regulates biofuels used for transport and non-road mobile machinery.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the potential merits to the UK public of improved air quality in international airspace resulting from the UK aviation sector increasing its use of renewable fuels.
Answered by Baroness Maclean of Redditch
Under the Renewable Transport Fuel Obligation (RTFO) renewable fuel used in mobile generators is eligible for Renewable Transport Fuel Certificates (RTFCs). Suppliers of fossil fuel used in mobile generators and other forms of non-road mobile machinery are also subject to an obligation to ensure renewable fuels are supplied in the UK. Suppliers of fossil fuels used in aviation are not currently obligated under the RTFO, but renewable fuels used in the sector are potentially eligible for RTFCs. The Department has no plans to limit the supply of renewable fuel to mobile generators for the purposes of increasing the availability of renewable fuels in the aviation sector.
In July the Department launched a consultation on proposals for a UK sustainable aviation fuels (SAF) mandate requiring jet fuel suppliers to blend an increasing proportion of SAF into aviation fuel from 2025. The consultation closes on 19 September. The modelling supporting the consultation has taken into consideration the interactions between fuels needed for road, non-road mobile machinery and aviation, and the availability of sustainable feedstocks and renewable fuels. A summary of responses including next steps will be published in due course and the modelling will be updated considering evidence from the consultation.
Policy development on the RTFO takes into account competing demands for renewable fuel resources across different transport sectors. It is also informed by regular reviews to ensure the scheme is delivering cost effective carbon savings in support of UK carbon budgets. It is widely understood that the availability of biomass used to produce biofuels is limited. So, these finite resources need to be deployed in sectors of the economy where greater greenhouse gas savings can be achieved, or sectors that have fewer decarbonisation options, such as aviation. The renewable fuel market will transform and adjust through this decade and beyond. As we transition to electric vehicles, some biomass and other sources of renewable fuel will be freed up to accommodate increased use in SAF.
Biofuels are traded in a competitive global market and the RTFO certificate trading scheme includes several measures to ensure costs passed on to the consumer are minimised and targets for the supply of renewable fuels are met. For example, the RTFO scheme includes a buy-out mechanism. The buy-out price, which was reviewed and updated last year, is set at a level which ensures that in normal market conditions there is a strong commercial incentive for suppliers to discharge their obligation through the supply of renewable fuels. Suppliers of fossil fuels to the non-road mobile machinery and diesel road vehicle sectors therefore have a strong incentive to meet their obligations under the RTFO through ensuring the supply of renewable fuels.
There are no direct benefits to the UK public of improved air quality in international airspace, defined as airspace which is outside of the standard state territorial limits. Studies have shown that NOx emissions from aircraft above 1,000 feet are unlikely to have a significant impact on local air quality. However, on top of the carbon emissions reductions and economic benefits associated with SAF use and production, there is growing evidence that SAF also reduces sulphur dioxide and particulate matter emissions. Thereby improving local air quality during take-off and landing, as well as other non-CO2 impacts of aeroplanes, including contrails.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the potential effect of the UK aviation sector’s demand for renewable fuels on the number of operators of (a) non-road mobile machinery and (b) diesel road vehicles switching to fossil diesel as a result of lack of available supplies of renewable fuels.
Answered by Baroness Maclean of Redditch
Under the Renewable Transport Fuel Obligation (RTFO) renewable fuel used in mobile generators is eligible for Renewable Transport Fuel Certificates (RTFCs). Suppliers of fossil fuel used in mobile generators and other forms of non-road mobile machinery are also subject to an obligation to ensure renewable fuels are supplied in the UK. Suppliers of fossil fuels used in aviation are not currently obligated under the RTFO, but renewable fuels used in the sector are potentially eligible for RTFCs. The Department has no plans to limit the supply of renewable fuel to mobile generators for the purposes of increasing the availability of renewable fuels in the aviation sector.
In July the Department launched a consultation on proposals for a UK sustainable aviation fuels (SAF) mandate requiring jet fuel suppliers to blend an increasing proportion of SAF into aviation fuel from 2025. The consultation closes on 19 September. The modelling supporting the consultation has taken into consideration the interactions between fuels needed for road, non-road mobile machinery and aviation, and the availability of sustainable feedstocks and renewable fuels. A summary of responses including next steps will be published in due course and the modelling will be updated considering evidence from the consultation.
Policy development on the RTFO takes into account competing demands for renewable fuel resources across different transport sectors. It is also informed by regular reviews to ensure the scheme is delivering cost effective carbon savings in support of UK carbon budgets. It is widely understood that the availability of biomass used to produce biofuels is limited. So, these finite resources need to be deployed in sectors of the economy where greater greenhouse gas savings can be achieved, or sectors that have fewer decarbonisation options, such as aviation. The renewable fuel market will transform and adjust through this decade and beyond. As we transition to electric vehicles, some biomass and other sources of renewable fuel will be freed up to accommodate increased use in SAF.
Biofuels are traded in a competitive global market and the RTFO certificate trading scheme includes several measures to ensure costs passed on to the consumer are minimised and targets for the supply of renewable fuels are met. For example, the RTFO scheme includes a buy-out mechanism. The buy-out price, which was reviewed and updated last year, is set at a level which ensures that in normal market conditions there is a strong commercial incentive for suppliers to discharge their obligation through the supply of renewable fuels. Suppliers of fossil fuels to the non-road mobile machinery and diesel road vehicle sectors therefore have a strong incentive to meet their obligations under the RTFO through ensuring the supply of renewable fuels.
There are no direct benefits to the UK public of improved air quality in international airspace, defined as airspace which is outside of the standard state territorial limits. Studies have shown that NOx emissions from aircraft above 1,000 feet are unlikely to have a significant impact on local air quality. However, on top of the carbon emissions reductions and economic benefits associated with SAF use and production, there is growing evidence that SAF also reduces sulphur dioxide and particulate matter emissions. Thereby improving local air quality during take-off and landing, as well as other non-CO2 impacts of aeroplanes, including contrails.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the potential effect of the UK aviation sector’s demand for renewable fuels on the levels of (a) availability of renewable diesel for use in non-road mobile machinery and (b) demand for fossil diesel for use in non-road mobile machinery and diesel road vehicles as a result of a lack of available supplies.
Answered by Baroness Maclean of Redditch
Under the Renewable Transport Fuel Obligation (RTFO) renewable fuel used in mobile generators is eligible for Renewable Transport Fuel Certificates (RTFCs). Suppliers of fossil fuel used in mobile generators and other forms of non-road mobile machinery are also subject to an obligation to ensure renewable fuels are supplied in the UK. Suppliers of fossil fuels used in aviation are not currently obligated under the RTFO, but renewable fuels used in the sector are potentially eligible for RTFCs. The Department has no plans to limit the supply of renewable fuel to mobile generators for the purposes of increasing the availability of renewable fuels in the aviation sector.
In July the Department launched a consultation on proposals for a UK sustainable aviation fuels (SAF) mandate requiring jet fuel suppliers to blend an increasing proportion of SAF into aviation fuel from 2025. The consultation closes on 19 September. The modelling supporting the consultation has taken into consideration the interactions between fuels needed for road, non-road mobile machinery and aviation, and the availability of sustainable feedstocks and renewable fuels. A summary of responses including next steps will be published in due course and the modelling will be updated considering evidence from the consultation.
Policy development on the RTFO takes into account competing demands for renewable fuel resources across different transport sectors. It is also informed by regular reviews to ensure the scheme is delivering cost effective carbon savings in support of UK carbon budgets. It is widely understood that the availability of biomass used to produce biofuels is limited. So, these finite resources need to be deployed in sectors of the economy where greater greenhouse gas savings can be achieved, or sectors that have fewer decarbonisation options, such as aviation. The renewable fuel market will transform and adjust through this decade and beyond. As we transition to electric vehicles, some biomass and other sources of renewable fuel will be freed up to accommodate increased use in SAF.
Biofuels are traded in a competitive global market and the RTFO certificate trading scheme includes several measures to ensure costs passed on to the consumer are minimised and targets for the supply of renewable fuels are met. For example, the RTFO scheme includes a buy-out mechanism. The buy-out price, which was reviewed and updated last year, is set at a level which ensures that in normal market conditions there is a strong commercial incentive for suppliers to discharge their obligation through the supply of renewable fuels. Suppliers of fossil fuels to the non-road mobile machinery and diesel road vehicle sectors therefore have a strong incentive to meet their obligations under the RTFO through ensuring the supply of renewable fuels.
There are no direct benefits to the UK public of improved air quality in international airspace, defined as airspace which is outside of the standard state territorial limits. Studies have shown that NOx emissions from aircraft above 1,000 feet are unlikely to have a significant impact on local air quality. However, on top of the carbon emissions reductions and economic benefits associated with SAF use and production, there is growing evidence that SAF also reduces sulphur dioxide and particulate matter emissions. Thereby improving local air quality during take-off and landing, as well as other non-CO2 impacts of aeroplanes, including contrails.