Renewable Transport Fuel Obligation (RTFO)

Client Information

Department for Transport

The Department for Transport (DfT) works with regional, local, and private sector partners to deliver an efficient nationwide transportation service.

The DfT's role is to determine an overall transport strategy, and manage the numerous agencies that are responsible for turning such a strategy into a reality.

• http://www.dft.gov.uk

Project Information

UK Department of Transport (DFT)
Renewable Transport Fuel Obligation (RTFO)

In 2000, the UK Government launched its Climate Change Programme in response to the UK's Kyoto agreement responsibilities, which included measures to reduce CO2 emissions. In 2003, the Government introduced an Energy White paper in which they expanded the 12.5% Kyoto target to a 20% reduction in carbon dioxide emissions by 2010 and to a 60% carbon saving by 2050. The increased use of bio fuels is considered a way to contribute to the achievement of these targets. The European Union (EU), recognising such benefits, passed Directive (2003/20/EC), which was also aimed at reducing EU reliance on external fuel sources.

The directive requires member states to set indicative targets for the increased use of bio fuels of 5.75% by 2010. In response to this stimuli, the Government announced in its 2004 Pre-Budget report that it would undertake a Feasibility Study and consultation into the prospects for the RTFO. The RTFO would require transport fuel suppliers to ensure that a percentage of their sales were from a renewable source, intended to deliver carbon savings in the transport sector and provide a sound platform for private sector investment in renewable fuels infrastructure and technology. The primary legislation for such a scheme was passed in the Energy Act of 2004. In particular, the study set out to establish the cost-effectiveness, administrative feasibility, regulatory burdens and compatibility of the RTFO with other government objectives. The government has committed to introduce the RFTO from April 2008 as a high profile policy and a key element of the Government's Climate Change Programme.

MRL Deliverables

• Delivered the strategy for the RFTO, its program tasks, objectives and timeline, costs and budgetary constraints.
• Developed the Outline and Full business case for the programme.
• Developed the Procurement Strategy including potential options for delivering the service.
• Developed the cost model and financial processes for the various project across the programme.
• Managed the recruitment process of personnel on the programme.
• Developed the communications and Stakeholder strategy, in addition to managing the public consultation exercise and publicity campaign.
• Defined the change management strategy for industry and other key stakeholders following go live in 2008.
• Ensured that the programme objectives, key dates and deliverables and scope were maintained.
• MRL consultants assisted in the creation of the programme library configuration structure enabling project participants to co-ordinate activities at a macro level and with various Stakeholders at different sites.
• MRL's consultants were responsible for the overarching management of the programme to ensure the successful delivery of the RFTO scheme.
• Consultants provided up to date analysis on certain programme decision options and the effects of their impact a macroeconomic level.
• Consultants successfully managed stakeholder relations by ensuring key interests were met and maintained.
• Devised the risk management strategies based on the identification of and on the maintenance of principal constraints, interdependencies and resources whose potential impact on the programme could affect its successful on time delivery date.
• Ensured that stakeholders and other project participants were briefed at each stage of the process through planned meetings, designed workshops and programme briefing updates, etc.

For Further Information:

• EU Renewable Energy Road Map
• EU Bio fuels Directive
• DfT Renewable Transport Fuel Obligation Website
• BBC News: Green Fuel Obligation Announced
• Meeting the Renewable Transport Fuel Obligation
• Quick Guide - Bio fuels