Johannes Brinkmann, Nikhil Datta

The Renewable Transport Fuel Obligation (RTFO) is a key policy in the UK aimed at reducing carbon emissions by mandating the blending of biofuels with fossil fuels. This briefing examines the policy’s costs for petrol consumers, decomposes the impact of biofuel prices and the obligation rate, evaluates the benefits to carbon emissions, and calculates the implied cost of carbon. This work assumes that the biofuels used to meet the RTFO adhere to the relevant government rules and regulations on their composition and sourcing.

Responsive Public Policy