Renewable Transport Fuel Obligation (RTFO)
Renewable Transport Fuel Obligation (RTFO)

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • Renewable Transport Fuel Obligation (RTFO)
  • Brexit impact
  • Renewable Transport Fuel Obligation (RTFO)
  • Obligation
  • RTFC
  • ROS account
  • Fuel volumes
  • Penalties
  • Recent changes and consultations

Brexit impact

As of exit day (31 January 2020), the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content.

For further guidance, see Practice Note: Brexit—impact on environmental law and News Analysis: Brexit Bulletin—key updates, research tips and resources.

Renewable Transport Fuel Obligation (RTFO)

The RTFO is one of the government's main policies for reducing greenhouse gas emissions from fuels supplied for use in:

  1. road vehicles

  2. non-road transports which includes:

    1. non-road mobile machinery (NRMM)

    2. inland waterway vessels which don't normally operate at sea

    3. tractors

    4. recreational craft that don't normally operate at sea

  3. aircraft

The Renewable Transport Fuel Obligation (RFTO) represents one of many government measures designed to support the UK’s wider renewables and carbon emissions aspirations under the EU Renewable Energy Directive 2009/28/EC (RED) and the Climate Change Act 2008 (CCA 2008). For more on RED, see Practice Note: Renewable Energy Directive 2009/28/EC—snapshot. For more on CCA 2008, see Practice Note: Climate change—emissions targets and carbon budgets.

It works by obliging fuel suppliers to provide a volume of sustainable renewable fuel which is calculated as a proportion of the overall volume of fuel they supply for road transport and