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 - Minister of State (Department of Health and Social Care)
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 - Minister of State (Department of Health and Social Care)
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 Rachel Maclean
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 Rachel Maclean
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 Rachel Maclean
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, whether his Department has plans to amend the definition of non-road mobile machinery in the Energy Act 2004 to limit the eligibility of biofuel suppliers that claim Renewable Transport Fuel Certificates on biofuel supplied to diesel powered generating sets for the purpose of increasing the availability of renewable fuels for use by the UK aviation sector.
Answered by Rachel Maclean
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: Ben Lake (Plaid Cymru - Ceredigion)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what recent studies his Department has undertaken on green alternatives to liquefied petroleum gas.
Answered by Rebecca Pow - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The Government is committed to reaching net zero emissions by 2050 and, as part of the work to meet that commitment, has taken great strides to promote green alternatives to liquefied petroleum gas (LPG) and other fossil fuels in a range of sectors. This has included gathering evidence on a number of different potential technologies including electrification, hydrogen and biofuels.
For the transport sector, the Government has not undertaken any recent studies into the alternatives to LPG specifically. Our recent Transport Decarbonisation Plan set out how we plan to cut emissions in the transport sector. This includes the phase-out of the sale of new petrol and diesel cars and vans by 2030, and, from 2035, the requirement for all new cars and vans to be 100% zero emission at the tailpipe. Renewable alternatives to LPG, including for example bio-LPG, are supported through the Renewable Transport Fuel Obligation, which has been in place since 2008. In regard to hydrogen as an alternative, the Government has recently published the first ever UK Hydrogen Strategy, which builds on the Government’s ambition for 5GW low carbon hydrogen production capacity by 2030.
On heating in particular, the Department for Business, Energy and Industrial Strategy commissioned research into the alternatives to using fossil fuels for heating off the gas grid. These can be found here and include Electric and bioenergy heating in off-gas grid homes: evidence gathering & Electric heating in rural off-gas grid dwellings: technical feasibility.
Asked by: Imran Ahmad Khan (Independent - Wakefield)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps his Department is taking to increase the proportion of road freight journeys made in vehicles powered by renewable energy.
Answered by Rachel Maclean
Decarbonisation of the UK’s road freight sector will play a critical role in delivering on our climate ambitions. The Government is rewarding the supply of renewable fuels for use in road transport, including heavy goods vehicles (HGVs), through the Renewable Transport Fuel Obligation scheme. We have also made funding available through multimillion-pound industry demonstration competitions, such as the Future Fuels for Flight and Freight Competition (the F4C), which support projects capable of producing low carbon waste-based fuels for use in aviation and HGVs.
The Prime Minister’s Ten Point Plan for a Green Industrial Revolution announced that we are investing £20m this financial year in planning for zero emission road freight trials which will support UK industry to develop cost-effective, zero-emission HGVs and their refueling infrastructure in the UK. These trials will advance research and development in the technologies of catenary electric, battery electric and renewable hydrogen-powered HGVs, allowing us to begin the commercial roll-out of the appropriate new technologies before the end of the decade.
We will also be consulting on a date for phasing out the sale of new diesel HGVs to drive innovation and development and increase the uptake of zero emission alternatives within the HGV sector.
In November 2020, HM Treasury published the National Infrastructure Strategy. This confirmed that the £950m Rapid Charging Fund (RCF) was to be made available to future-proof electrical grid capacity at service areas on motorways and major A-roads. Whilst the RCF is currently targeting cars and vans, the additional electrical capacity will support charging infrastructure for zero emission HGVs. We are currently analysing the demand from zero-emission HGVs at Motorway Service Stations and considering how the infrastructure installed as part of the RCF can be used by zero emission HGVs in the future.
Asked by: Philip Dunne (Conservative - Ludlow)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of removing duty for (a) hydrotreated vegetable oil and (b) other renewable liquid fuels for home heating purposes.
Answered by Kemi Badenoch - President of the Board of Trade
Hydrotreated vegetable oil is a direct substitute for diesel and it is therefore taxed at the rebated rate for diesel when it is used for home heating. There are no duty incentives for renewable fuels used as a direct substitute for diesel, and it would be difficult to legislate for a complex scale of duty rates to be applied to different hydrocarbon oil products. The Government will keep this under review to determine whether there is a case to make changes to the taxation of this fuel.
The UK is the first major economy in the world to legislate for net zero emissions by 2050 and the Government’s Renewable Heat Incentive, currently worth over £1 billion per year, supports households to install renewable heating systems such as heat pumps and biomass boilers. The forthcoming Heat and Building Strategy will set out the Government’s position on the transition to low carbon off gas-grid heating, but fiscal decisions are a matter for Budgets.