Biofuel Subsidies in the United Kingdom

The U.K. government is currently considering what policies will ensure it meets the European Union’s Renewable Energy Directive (RED) commitment of using 10 per cent by energy of renewable transport fuels by 2020. This study examines the potential fiscal burden on the U.K. government and the additional costs imposed on consumers and other sections of the economy if the U.K.’s blending mandate of 4 or 5 per cent (in 2011/12) was increased to 10 per cent or 15 per cent in order to satisfy the EU’s renewable transport target. A number of important areas were investigated and, where possible, an estimate of the potential costs provided.

This article is part of the series Biofuels - At What Cost?.