The government today announced that by 2010 five-percent of all transport fuel will come from CO2 neutral sources like bioethanol and bio-diesel which is refined from crops including wheat, sugarbeet and oilseed rape.

The NFU has taken a lead role in lobbying for the adoption of this policy, drawing in new partners from environmental groups like Friends of the Earth and English Nature and scientific institutions to develop a biofuels alliance across all sectors. Plans are in place to continue to forge partnerships to promote the long-term viability of the UK biofuels industry ahead of the 2008 start date. This will ensure Britain has the capacity to meet domestic demand through local sources.

Following the announcement NFU deputy president Peter Kendall said: “This announcement demonstrates what farmers can do to help meet environmental challenges. The Renewable Transport Fuel Obligation is a huge step forward and gives British farmers the opportunity to make a significant positive contribution to combating climate change. Potentially we can reduce this country’s CO2 emissions by more than a million tonnes each year*.

“British farmers have already demonstrated they have the capacity and the desire to produce more than enough raw materials to meet the 5 percent target. And this announcement gives the industry and investors the confidence to develop the infrastructure needed to extract renewable biofuels from the UK’s expendable crop surpluses.

“The NFU will continue to forge partnerships to ensure that this obligation is met through sustainable domestic channels. However, this process will take time and in the interim some foreign capacity will be needed to help the industry get off the ground. This will be a short-term arrangement while the British industry builds capacity to deliver long-term benefits for the environment and British farming.”

The NFU applaud the government’s decision to adopt the ReTFO and looks forward to working to ensure the best outcomes for the environment, economy, fuel security and agriculture. That the government has listened to industry and has created a relatively simple and workable system is also pleasing. We look forward to the continued development of the policy as the industry grows.

Source: National Farmers Union - 10th November 2005