“We are one of the first countries to develop a detailed methodology to allow transport fuel suppliers to report in detail on the carbon and sustainability impacts of their biofuels,” said the UK Minister of Transport. The Minister announced that a minimum level of sustainability will be mandatory from 2011 to earn certificates under the scheme, and from that time that certificates will be issued based on the carbon savings realised. The strong government statement makes sustainability an even more important aspect for all bio-energy players.

The consultation paper lists three main targets:

1. The level of greenhouse gas savings expected from the use of biofuels: 40% in 2008/09 compared to fossil fuels, 50% in 2009/10, and 60% in 2010/11;
2. The proportion of biofuels expected to come from feedstocks meeting acknowledged sustainability standards (50% in 2009/10, rising to 80% in 2010/11); and
3. The amount of specific information that is expected to be included in sustainability reports (35% of the relevant data fields within the monthly reports in 2008/09, 65% in 2009/10, and 80% in 2010/11).

The scope and format of monthly and annual reports from biofuel suppliers, the verification requirements for these reports, and the default values to be used to calculate the carbon savings offered by different biofuels when precise data are not available, are the main topics that the consultation covers.

The RTFO is modeled in part on the existing Renewables Obligation for electricity in the UK and is due to start in April 2008. In order to receive Renewable Transport Fuel Certificates (RTFCs), biofuel suppliers will be required to submit monthly and (if they apply for 450,000 or more certificates in an obligation period) annual reports on both the net Greenhouse Gas savings and the sustainability of the biofuels they supply. The Obligation will require fuel companies to sell a minimum of 2.5% renewable transport fuels in the UK in 2008/2009, increasing up to 5% in 2010/2011. This is expected to save about 1 million tonnes of carbon a year. The years 2008-2011 are regarded as an initial phase of the RTFO.

The final version of the reporting requirements will be published by the RTFO Administrator as soon as possible, but not earlier than 13 September, when the consultation closes.

Find more on this topic on the UK Department for Transport website at http://www.dft.gov.uk/consultations/open/rtforeporting