My Lords, the order, as has been said, amends the Renewable Transport (Fuel Obligations) Order 2007 to increase targets for fuel suppliers, thus driving the supply of renewable fuel in transport and delivering further greenhouse gas reductions. It amends Article 4 of the RTFO order so that the main obligation on renewable fuel targets increases by five percentage points, from 9.6% to 14.6%, between 2022 and 2032.
Those suppliers that meet or exceed the obligations already acquire renewable transport fuel certificates, the training of which provides a financial incentive. The order extends that financial incentive to suppliers of renewable hydrogen, used in fuel cell rail and non-road transport, and of renewable fuels of nonbiological origin used in maritime transport.
The Government have said that the RTFO delivers about a third of the savings required for the UK’s current transport budget, and that last year the RTFO scheme saved carbon emissions equivalent to taking 2.5 million combustion engine-powered cars off the road. They have also said that the changes made by this order are estimated to deliver the equivalent of an additional 1.5 million cars by 2032. As we know, in 2019, road transport accounted for 24% of all greenhouse gas emissions and greenhouse gas emissions from transport have remained largely unchanged since 1990, as the noble Baroness, Lady Randerson, just reminded us.
How did the Government finally come to the conclusion that a five percentage point increase in the renewable fuel target between 2022 and 2032 would be sufficient in the transport sector to meet our greenhouse gas emission and climate change goals? What, if anything, happens after 2032?
The Government consulted on only three options: increasing the main obligation by 1.5, 2.5 or 5 percentage points, with the Department for Transport backing a 2.5 percentage point increase in the renewable fuel target. Paragraph 10.3 of the Explanatory Memorandum states:
“Of the 77 respondents that expressed a preference on the amount by which this target should increase, 61 supported an increase to the RTFO main obligation of 5 percentage points or
more. These respondents included suppliers of renewable fuel who benefit from support under the certificate trading scheme, and suppliers of fossil fuel who must meet the targets. Those in support of an increase of 5 percentage points or more suggested this could provide long term certainty to industry and would provide a further contribution to the government’s commitment to net zero greenhouse gas emissions by 2050. Accordingly, the government has decided to increase the RTFO main obligation by a further 5 percentage points between 2022 and 2032.”
There appears to have been a greater commitment to the Government’s net-zero greenhouse gas emissions target by 2050 from the respondents to the consultation than there was from the Government themselves, which begs the question: does the order go far enough? Why did the order reject going beyond 5 percentage points, as some respondents clearly proposed, despite that not even being one of the three options the Government had offered?
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The Government have announced a date for a ban on the sale of new petrol and diesel vehicles. For how many years will a new petrol or diesel vehicle purchased the day before the ban comes into effect be allowed to be driven on our roads? What is the position on a ban on the sale of second-hand petrol and diesel cars?
Aviation and shipping are important parts of the transport sector. How are these two domestic and international sectors to be decarbonised, and from when?
While this instrument is welcome, does it go far enough and fast enough towards decarbonising the transport sector by reducing emissions? Bear in mind that the Government have said, at paragraph 7.1 of the Explanatory Memorandum, that
“Renewable fuels can deliver emissions reductions quickly.”
What has led the Government to believe that what is or is not covered within the provisions of this order represents the fastest that renewable fuels can deliver a reduction in emissions? I hope the Minister will address this point in her response.
I hope the Minister will also comment on the issue raised by the noble Baroness, Lady Randerson, about the 21 days between the making of the instrument and it coming into force. Why, on this occasion, does this accepted period appear to have not been achieved?