Renewable Transport Fuels Obligation

 The Renewable Transport Fuel Obligation is the UK Government's main policy for encouraging the use of low carbon fuels in road vehicles, non-road mobile machinery, and other surface transport modes. It works by setting annual obligations for fuel suppliers to require a certain perceptage of their fuel comprises sustainable low carbon fuel.
 
 The obligation has two elements: the 'main obligation', currently 14.054%, and the 'development fuel target', currently 1.619%. Fuel suppliers can meet their obligation by redeeming Renewable Transport Fuel Certificates, or by paying a fixed sum for each litre of fuel for which they wish to 'buy-out' of their obligation. These obligations under the scheme are currently set to increased out to 2032, before levelling off. The UK Department for Transport is currently (2024-25) undertaking a statutory review of the scheme.

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