1. NEWS

Renewable Fuels Agency reports on the impacts of the RTFO

FiveBarGate is pleased to see the RFA provide an open report on the UK obligated party performance in response to the RTFO. FiveBargate contributed to the report, in particular the assessment of the RTFO on UK business.

FiveBarGate is pleased to have been able to work with obligated parties that performed well in the RFA report and biofuel companies that deliver sustainable biofuels.

In general, while the RFA report shows the obligation levels were met, it seems that this has been heavily supported by the existence of the duty break that has been available. This seems to have delivered significant value to some obligated parties, though the report also suggests that biofuel companies and agricultural suppliers have generally not benefitted. Indeed it seems some have struggled.

With regard to sustainability, the RTFO has not fully delivered. This is despite the efforts of UK biofuel companies, which clearly have done well with regard to sustainability.

This leaves us concluding that the ultimate buyers and blenders of biofuels, the obligated parties, are largely choosing to source material with unkown or poor sustainability credentials, while benefitting from additional revenues. In this regard, the RTFO has failed to deliver sustainable biofuels and we must look forward to the RED and FQD to develop policy that encourages obligated parties to buy sustainable biofuels from responsible biofuel companies, such as those in the UK and some noted in Germany.

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