In 2003, road transport accounted for approximately 25% of UK greenhouse gas emissions, equivalent to 112.5 million tonnes of carbon dioxide. At that point, renewable fuels accounted for 0.6% of road fuel sales in the UK, at about 260 million litres per annum. The Government announced in November 2005 that it would introduce a Renewable Transport Fuel Obligation (RTFO) as a way of supporting the use of biofuels and other renewable fuels in the transport sector. It also announced that the level of the RTFO would increase year on year.
The Order initially proposed to deliver CO2 savings of approximately 2.6 - 3.0 million tonnes per annum by 2010. Alongside duty incentives, this remains a key policy in the transport sector to reduce greenhouse gas emissions and to increase use of renewable fuels, helping to meet the UK's international obligations under the Kyoto agreement.
