Asked by: Geraint Davies (Independent - Swansea West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps she is taking to reduce emissions from construction vehicles.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
The Government has made available funding to support the development of low and zero carbon technologies with relevance to construction vehicles, including through the Advanced Propulsion Centre and the Red Diesel Replacement Competition. The use of renewable fuels in construction vehicles is also encouraged through the Renewable Transport Fuel Obligation. Government has committed to publishing a decarbonisation strategy for Non-Road Mobile Machinery which includes construction vehicles intended for use on site, with a Call for Evidence on decarbonisation options to be issued shortly.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to update the Hydrocarbon Oil Duty Act 1979 to categorise hydrotreated vegetable oil as a biodiesel.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Hydrotreated vegetable oil (HVO) is treated as diesel for the purposes of fuel duty. HVO benefits from the rebated duty rate of 10.18 pence per litre (ppl) when used for an allowed purpose, and 52.95 ppl for road use.
The Government encourages the use of HVO through the Renewable Transport Fuel Obligation (RTFO), which incentivises the use of low carbon fuels and reduces 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.
The Government’s Biomass Strategy which was published on 10 August reviews the amount of sustainable biomass available to the UK, including liquid biofuels such as HVO. It is important to ensure that biomass is prioritised within the economy where it offers the greatest opportunity to reduce greenhouse gas emissions in ‘hard to abate’ sectors where there are fewer options to decarbonise through alternative low carbon technologies.
As with all taxes, the Government keeps the tax treatment of HVO under review.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of reducing fuel duty on hydrotreated vegetable oil fuel.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
Hydrotreated vegetable oil (HVO) is treated as diesel for the purposes of fuel duty. HVO benefits from the rebated duty rate of 10.18 pence per litre (ppl) when used for an allowed purpose, and 52.95 ppl for road use.
The Government encourages the use of HVO through the Renewable Transport Fuel Obligation (RTFO), which incentivises the use of low carbon fuels and reduces 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.
The Government’s Biomass Strategy which was published on 10 August reviews the amount of sustainable biomass available to the UK, including liquid biofuels such as HVO. It is important to ensure that biomass is prioritised within the economy where it offers the greatest opportunity to reduce greenhouse gas emissions in ‘hard to abate’ sectors where there are fewer options to decarbonise through alternative low carbon technologies.
As with all taxes, the Government keeps the tax treatment of HVO under review.
Asked by: Baroness Bakewell of Hardington Mandeville (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the tax incentives offered by (1) Czechia, (2) Latvia, (3) Luxembourg, and (4) Sweden, to support the further rollout of renewable biofuels, such as Hydrotreated Vegetable Oil (HVO); and what plans they have to introduce similar incentives in the UK.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
Hydrotreated vegetable oil (HVO) is taxed at the same rate as diesel and required to be marked if used for an allowed purpose. The Government is aware that other countries use tax incentives to increase the uptake of HVO, but differences between tax systems make direct comparison difficult.
The UK Government encourages the use of HVO through the Renewable Transport Fuel Obligation (RTFO), which incentivises the use of low carbon fuels and reduces 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.
In addition, the forthcoming Biomass Strategy will review the amount of sustainable biomass available to the UK, including liquid biofuels such as HVO, and how this could be best used across the economy to achieve our net zero target. It is important to ensure that biomass is prioritised within the economy where it offers the greatest opportunity to reduce greenhouse gas emissions in ‘hard to abate’ sectors where there are fewer options to decarbonise through alternative low carbon technologies.
The Government keeps all taxes under review.
Asked by: Viscount Waverley (Crossbench - Excepted Hereditary)
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 - Parliamentary Secretary (HM Treasury)
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.
Asked by: Viscount Waverley (Crossbench - Excepted Hereditary)
Question to the Department for Transport:
To ask His Majesty's Government what assessment they have made of the impact on carbon emissions from logistics vehicles that would come from greater use of low-carbon drop-in fuels, compared to diesel.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
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.
Asked by: Bill Esterson (Labour - Sefton Central)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether he has made a comparative assessment with Cabinet colleagues of the potential impact of the cost of (a) low carbon fuels and (b) diesel and kerosene on the level of usage of those fuels by logistics businesses.
Answered by Jesse Norman
The Department’s forthcoming Low Carbon Fuel Strategy will cover all transport modes used by the logistics sector.
The Government supports the production of low carbon fuels through the Renewable Trade Fuel Obligation (RTFO), which reduces the cost of low carbon fuels in the long term. The Government published a cost benefit analysis for the RTFO in 2021,but has not undertaken a formal assessment of the impact of cost of different fuel types or the level of usage including for logistics businesses.
Asked by: Fleur Anderson (Labour - Putney)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what progress his Department has made on the research and development of (a) hydrogen fuel and (b) other alternative fuels to petrol and diesel.
Answered by Jesse Norman
Research and development funding for hydrogen focusses on demonstrating proven applications at scale and driving innovation. The Department for Transport supports the Tees Valley Hydrogen Transport Hub, which is co-locating hydrogen supply and demand across proven road, maritime and aviation applications. The Department’s £200m zero emission HGV demonstrator programme will deploy hundreds of vehicles onto UK roads.
In addition, the UK Shipping Office for Reducing Emissions (UK SHORE), Advanced Fuels Fund (including Sustainable Aviation Fuels), Zero Emission Flight Infrastructure project and First of a Kind funding in rail continue to support the development of innovative transport solutions here in the UK.
The Renewable Transport Fuel Obligation now includes a higher value “development fuel” target and synthetic “drop-in” alternatives to fossil petrol and diesel fuels, such as e-fuels “are eligible for this support when supplied in the UK.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what assessment they have made of the public health impacts of recycled carbon fuels through air pollution as compared to existing fuels and other alternative fuels such as those made from biomass.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
My Department has regular meetings with representatives from across the transport fuel sector where the government’s policy approach for recycled carbon fuel (RCF) is discussed. The policy on supporting and assessing RCFs has also been the subject of two public consultations, the first in spring 2021 followed by a second on detailed proposals last summer.
As set out in the July 2021 Government response to the consultation “Targeting Net Zero, next steps for the Renewable Transport Fuels”, RCFs supplied in transport will need to meet existing petrol and diesel fuel standards. This will ensure the air quality emissions standards of RCFs will not fall below those of the fossil fuels they replace. The Department understands that the direct use of RCF derived pyrolysis oils can increase air pollutants, but these fuels will not be supported under the proposals to support RCFs.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what meetings they have had with industry bodies about recycled carbon fuels.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
My Department has regular meetings with representatives from across the transport fuel sector where the government’s policy approach for recycled carbon fuel (RCF) is discussed. The policy on supporting and assessing RCFs has also been the subject of two public consultations, the first in spring 2021 followed by a second on detailed proposals last summer.
As set out in the July 2021 Government response to the consultation “Targeting Net Zero, next steps for the Renewable Transport Fuels”, RCFs supplied in transport will need to meet existing petrol and diesel fuel standards. This will ensure the air quality emissions standards of RCFs will not fall below those of the fossil fuels they replace. The Department understands that the direct use of RCF derived pyrolysis oils can increase air pollutants, but these fuels will not be supported under the proposals to support RCFs.