My Lords, the purpose of these regulations is to introduce E10 as standard petrol across Great Britain while ensuring that the current E5 grade remains available to those who need it. E10 petrol contains up to 10% renewable ethanol, double the amount that can be blended into today’s E5 grade. Increasing the renewable ethanol content can reduce annual carbon dioxide emissions by 750,000 tonnes, helping us to meet our ambitious climate targets.
The regulations also update labelling requirements that must accompany the sale of E10 to ensure that fuel consumers have the right information. Finally, the SI makes some necessary amendments to the Motor Fuel (Composition and Content) Regulations 1999 to correct for deficiencies and replace references to EU directives following the UK’s exit from the European Union.
Introducing E10 allows us to cut carbon emissions from cars, motorbikes and other petrol-powered equipment in use today. This is done by simply increasing the limit to which renewable fuel can be blended into standard petrol. It is one of the very few measures available to us today with an immediate impact.
E10 is a proven fuel that is already in use across the world, including in France, Belgium, the Netherlands and the US, to name but a few. We also have a valuable bioethanol industry in the UK that will benefit from increased demand; indeed, following our policy announcement, one large facility operator has already announced that it is recommencing production. These facilities play important roles in their local economy, employing hundreds of skilled workers directly and supporting thousands of jobs in the wider community.
That community includes the agricultural sector, with locally grown feed wheat used to produce ethanol. By-products, such as high-protein animal feed, are used by livestock farmers in place of soya products. It is vital to support these industries as we endeavour to build back greener, with low-carbon industrial hubs crucial to our path towards net zero by 2050.
Introducing E10 is part of a wider set of measures to encourage renewable fuels. Overall renewable fuel blending is incentivised through the renewable transport fuel obligation, or RTFO, obligating larger fuel suppliers to supply renewable fuels. However, because the RTFO allows for different ways to meet targets, it has proven insufficient to remove market barriers for the introduction of specific fuel blends such as E10.
As RTFO targets have increased over the past three years, fuel suppliers are now blending very close to the 7% biodiesel limit for standard diesel and 5% bioethanol limit for standard petrol. If we want to increase renewable blending further, we need to take additional measures now. While most diesel vehicles are approved to use only a maximum of 7% biodiesel, known as B7, the vast majority of petrol vehicles—over 95%—are cleared to use E10 petrol. Our immediate focus is therefore on E10.
Fuel suppliers and retailers have made it clear to us that, for technical reasons related to vapour pressure, the best time to introduce E10 is at the same time as the change from summer to winter fuel specification. This happens every September. To ensure we reap the
full greenhouse gas benefits of E10 introduction, we have consulted separately on increases to the RTFO from January 2022, allowing for a short transition period. We will announce the next steps on the target increases soon.
While 95% of all petrol vehicles can use E10, some older vehicles cannot. That is why this instrument includes provisions to keep the current E5 petrol available in the higher octane super grade. The super grade is available nationwide but in areas with less coverage, such as in parts of Scotland, exemptions are available to ensure that everyone can access the fuel they need. We have also launched a comprehensive communications campaign involving local radio, roadside posters, social media and information on the forecourts. This informs motorists of the changes to petrol that will happen this summer and directs vehicle owners to the online compatibility checker, ensuring everyone can be clear on the right fuel for their vehicle or equipment.
The SI also makes amendments that are required following our departure from the European Union. We have replaced references to EU legislation with references to domestic legislation to ensure the ongoing operability of the fuel standards. It is also important to note that, as a result of this amendment, all petrol supplied in the UK will still meet the same standards as apply across Europe.
In proposing this statutory instrument, the Government have carefully considered a balance of interests. It recognises the need to maximise our efforts to decarbonise vehicles on the road today and support our domestic renewable fuel industry, while maintaining access to a suitable petrol grade for all. I believe introducing E10 petrol this September strikes that balance. I beg to move.
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