Consultation outcome: Supporting recycled carbon fuels through the Renewable Transport Fuel Obligation

Published: 16 February 2024
By Chris Haycock

We will introduce support for recycled carbon fuels under the renewable transport fuel obligation (RTFO).

Our response outlines the technical aspects of how this will be implemented, including: 

• a principles-based framework for assessing the eligibility of new recycled carbon fuel (RCF) feedstocks 
• a reward rate of 1 renewable transport fuel certificate (dRTFC) per litre of RCF supplied under the RTFO  
• a tailored greenhouse gas (GHG) emissions methodology  
• a GHG emission savings threshold  
• reporting and verification requirements, including additional sustainability criteria

Draft guidance for recycled carbon fuels has also been published.

A summary of the responses is published in the government response to this consultation.

We are seeking views on ways to support the production and use of recycled carbon fuels (RCFs) by adopting:

• a flexible approach to determining feedstock eligibility, setting out a principles-based framework for assessing the eligibility of new RCF feedstocks
• a reward rate that provides substantial support to the industry while managing risk and maximising value for money
• a tailored greenhouse gas (GHG) emissions methodology that follows a counterfactual approach, comparing the GHG emissions from RCF production to the most likely alternative option
• an ambitious GHG emission savings threshold that remains stringent as the electricity grid decarbonises and ensures that RCFs make substantial GHG reductions
• reporting and verification requirements, including additional sustainability criteria, to give confidence that RCFs are supplied sustainably

This consultation follows on from a March 2021 consultation about amending the Renewable Transport Fuels Obligation (RTFO) to increase carbon savings on land, air and at sea, which included initial proposals to support RCFs.