Renewable Transport Fuel Obligations (Amendment) Order 2009

I was coming to that point in a moment with regard to the next steps that we will take. In June this year we will submit an action plan to the European Commission containing indicative trajectories and plans for using biofuels to meet the 10 per cent target under the renewable energy directive, so we remain committed to that target. We have established a cross-sector stakeholder group to help to advise us on how we go forward, and will publicly consult on more detailed proposals later this year, including, I stress again, indicative trajectories of the growth of supply after 2013-14. Having met representatives of the industry over recent weeks, I know it is a concern of theirs that there should be a clear trajectory beyond 2013-14 for the growth in the supply of biofuels and it is our intention, when we submit our action plan to the Commission, to publish indicative trajectories beyond that year. The cross-sector stakeholder group, which includes leading biofuel suppliers as well as environmental groups, will be meeting from next month. I hope that, again, that will help us to establish a consensus on the way forward. The development of the action plan that I have referred to should provide an opportunity for future debate, but also for greater investor certainty. With regard to the order we are debating today, however, I stress again to the Committee that if we do not support this amendment to the RTFO now, the discrepancy that has caused so much concern to suppliers will remain uncorrected. In effect, that would give fossil-fuel suppliers the opportunity to avoid the obligation in future through blending small quantities of biofuel with their fossil fuel. That outcome would damage both the biofuel industry and our efforts to tackle climate change. While we accept that we need to establish as soon as we reasonably can a clear trajectory for further development of biofuels beyond 2013-14, the order is necessary. As I say, it is part of a clear government policy for the development of biofuels. We could not have sought to address the underlying concerns and evidence more thoroughly than we did with the work of the Gallagher committee that was published last year; it is a comprehensive analysis that is informing our negotiating position in Brussels and has led to clear statements of policy that I believe give confidence to the industry about the development of biofuels over the next five years, while in the summer we will be publishing our further indicative trajectory for meeting the 10 per cent target. Taking all these factors into account, I think the order deserves the Committee’s support.