Fuelling Development

This report for Transport and Environment, written in partnership with David Calderbank Consulting, considers options for the development of alternative transport energy policy in the UK under the Renewable Transport Fuel Obligation (RTFO). It discusses issues including adding renewable transport fuel obligations on aviation and marine fuel use, crediting renewable electricity use by electric vehicles, and improving the investment case for advanced alternative fuel projects. It includes a detailed proposal for a novel policy system using ‘contracts for difference’ to provide minimum revenue guarantees to investors in chosen advanced alternative fuel projects, thus enhancing the effectiveness of the RTFO development fuel mandate as an investment driver.