Biofuels policy costs double

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The predicted cost of the Renewable Transport Fuel Obligation (RTFO) has risen by 87% from £203 to £380 per tonne of carbon emissions saved.

Meanwhile, estimated carbon savings are down from one million tonnes a year to 700,000-800,000 tonnes.

The RTFO is intended to reduce greenhouse gas emissions from the transport industry by increasing use of biofuels.

From April 2008 it will place an obligation on fuel suppliers to ensure that 2.5% of forecourt sales comes from biofuels.

This will rise to 3.75% in 2009 and 5% in 2010.

Retailers who do not supply the fuel can buy-out of the obligation at 15p for every litre of fuel from non-renewable sources.

According to Government figures the transport sector is responsible for 25% of emissions. A saving of one million tonnes in carbon emissions is equivalent to taking a million cars off the road.

In a written statement, junior transport minister Jim Fitzpatrick said: "The Government has revised downwards its estimate of the carbon savings that the RTFO is likely to deliver and has revised upwards its estimate of the total costs of the policy."

Total net savings from the RTFO are now estimated at 2.6 to 3 million tonnes of carbon dioxide (700,000-800,000 tonnes of carbon) per annum in 2010/11.