16:30 The Parliamentary Under-Secretary of State for Transport (Anthony Browne)

We committed to supporting RCFs in the Government’s transport decarbonisation plan and this statutory instrument delivers on that goal. It is the product of two consultations with industry and in-depth working with industry experts and across Government Departments. By broadening the available feedstocks for eligible fuels, the instrument will help to maximise the greenhouse gas savings that can be achieved under the RTFO scheme and encourage the development of a new industry.

What are these new fuels? RCFs are fuels produced from fossil wastes that cannot be avoided, reused or recycled, and that have the potential to reduce greenhouse gas emissions relative to petrol, diesel or kerosene. To date, the RTFO scheme has only supported purely renewable fuels, but emerging technologies and production methods mean that it is possible for fuels produced from fossil wastes to contribute to emissions reductions to a similar degree as renewable fuels.

Supporting RCFs under the RTFO scheme will also increase the range of feedstocks eligible for support and encourage the innovation needed to increase deployment of low carbon fuels in harder-to-decarbonise vehicles, such as heavy goods vehicles. RCF production utilises many of the same processes and technologies that need to be developed to increase the efficiency and capability of chemical recycling. Providing extra investment into those processes will lead to wider waste management benefits in future.

Recent amendments to the Energy Act 2004, made via the Energy Act 2023, permit RCFs to be included in the RTFO scheme—as well as in other renewable transport support schemes, such as the forthcoming mandate for sustainable aviation fuels—provided that they cause or contribute to a reduction in carbon emissions. The change to the 2004 Act recognised that RCFs can play an important role in decarbonising different transport modes, including harder-to-electrify vehicles such as heavy goods vehicles and airliners.

In conclusion, as I have said, fuels supplied under the RTFO scheme currently deliver about one third of all domestic transport carbon savings under the current carbon budgets. However, it is vital that we expand the range of feedstocks that we use if we are to continue to grow their contribution and meet our net zero goal. RCFs have the potential to deliver emissions savings across the transport sector while also supporting the efficient handling of waste, and provide an opportunity for a valuable, emerging UK industry, which we should all support. I commend the statutory instrument to the House.

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16:37 Simon Lightwood (Labour)

It is a pleasure to serve under your chairmanship, Mr Rosindell. I thank the Minister for introducing this delegated legislation. As we all know, transport has the highest carbon emissions of any sector, so decarbonisation should be a key priority. The Government first consulted on the amendment in this order in 2021, so why has it taken until today for us to consider it? Nevertheless, Labour supports this legislation.

The RTFO order is a key policy for reducing greenhouse gas emissions in transport—and, might I add, it was introduced by a Labour Government. The extension of the order to include recycled carbon fuels is welcome; after all, RCFs can be as much as 50% less polluting compared with fossil fuels. By 2033, the change is projected to result in the supply of more than 1 billion litres of additional low-carbon fuel, resulting in a saving of more than 15 million tonnes of greenhouse carbon dioxide equivalents. Crucially, the increase in the number of qualifying fuels in the RTFO order will contribute to lower costs for general road fuel consumers.

More widely, why is there a nuanced understanding of the necessity to decarbonise here, but not in the recently published national networks national policy statement, which allows the inclusion of residual emissions in new projects? Why has the Prime Minister rowed back on the Government’s commitment to vehicle electrification by moving the petrol and diesel vehicle ban back to 2035? Where is the Government’s commitment to rail freight, hydrogen and biogas?

Overall, Labour supports this delegated legislation and the necessary wider decarbonisation of our public transport, but we must ensure that the Government have assessed the impact on the UK’s wider fuel sector.

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16:40 Gavin Newlands (Paisley and Renfrewshire North) (SNP)

In addition to the questions raised by the hon. Member for Wakefield and my point about a cost-based support mechanism, I did not hear the Minister talk about maritime. I would be keen to explore how maritime can gain from renewable transport fuel obligations, if not now, then in the near future. As a sector, it is almost as difficult to decarbonise as the aviation sector, so I am keen to hear about it.

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16:43 Anthony Browne

The answers to many of the other questions that were asked will come out of forthcoming strategies. We have one on the low-carbon fuel strategy that will come out later this year, which looks at the whole range of low-carbon fuels, the interactions between them and how we maximise their benefits across all modes of transport and indeed other uses. There will also be a strategy published later this year—it is no secret; it is public knowledge—on how we decarbonise the maritime sector, which is a complex sector with many different uses. Many of the more detailed questions that the hon. Gentleman asked on maritime will be covered in that strategy, rather than in this Committee.

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