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Transport fuels

Transport fuels

11-06-08

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In his major review of the economics of climate change (October 2006), the World Bank's former chief economist Sir Nicholas Stern noted that transport is one of the most expensive sectors in which to cut carbon emissions.
This was, he said, both in terms of the technology needed to achieve emissions reductions, and the potential economic costs of reducing travel as a whole.

And while transport represents around a quarter of all domestic carbon emissions, with 93% of this from road vehicles, the Stern report predicted that transport would be one of the fastest growing sectors in the future - and also among the last to bring emissions down below current levels.

High oil prices - and high levels of fuel duty - have made the economics of cutting emissions from transport fuel a highly sensitive issue in UK politics at the moment.

Renewable biofuels produced from agricultural biomass crops or waste materials are seen as one answer to the problem, both by the European Union and the UK government. They can be safely used in small quantities within petrol or diesel used in road vehicles.

Sustainability

However, there have been big concerns about biofuels in 2007 and 2008. One concern is their efficiency and greenhouse gas savings, where the energy used to produce certain biofuels may be more than the energy they provide. The other concern is competition for agricultural land land, an issue that has seen biofuels cast as the villain in the global shortage of food.

With biofuels the only large-scale viable alternative currently available for transport fuel, European and UK leaders are now working on "sustainability criteria" to address these concerns, which are now placing the whole development of biofuels into controversial and politically difficult territory. 

One alternative a little further away from large-scale commercialisation is the use of hydrogen fuel cells or electricity to power vehicles. This technology would appear to be more difficult to commercialise than using biofuels, and potential carbon savings would depend on the energy sources used to produce the hydrogen or electricity. The government has identified these technologies as having potential within its new Renewable Energy Strategy, but will have to get car manufacturers on board as well as developing the required national infrastructure.

The UK government claims its existing policies mean emissions in 2010 will be 15% lower than without those measures. This includes frequent increases in fuel tax and vehicle tax exemptions for more fuel-efficient vehicles as well as lower duty levels for biofuels.

But, new targets currently being set by Europe - notably for 10% of transport fuel to comprise biofuels from 2020, as well as possible new fuel efficiency and carbon reduction targets - is driving the UK to realise it needs to do much more to cut the environmental impact of transport fuels.

Its stated approach, as laid out in the 2007 Energy White Paper and associated Low Carbon Transport Innovation Strategy is for a combination of "carbon pricing mechanisms" and moves to cut red tape to encourage alternative fuel use, as well as more government support for research, development and demonstration projects.

Renewable Transport Fuels Obligation

Renewable Transport Fuels Obligation

One of the most important measures currently in place to force transport fuel producers to move towards alternatives to fossil fuels has been the Renewable Transport Fuels Obligation (RTFO).

Biofuels: The Gallagher review

Biofuels: The Gallagher review

Prompted by concerns about the impact of biofuel production on food prices, a major review of biofuels was carried out in the first half of 2008 by RFA chairman Ed Gallagher, recommending a slow-down in renewable fuel target increases