Supporting recycled carbon fuels through the Renewable Transport Fuel Obligation

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.