A motion supporting the UK sustainable biodiesel industry was been tabled in the UK Parliament this week (22nd July) in an attempt to press the UK Government into reviewing its taxation regime for the fuel.

The UK sustainable biodiesel industry currently faces a bleak future, says the UK Sustainable Biodiesel Association, as the removal of the 20p per litre tax differential from 2010 will make biodiesel more expensive to purchase than fossil fuel.  This cost increase, it explains, will make it commercially unviable for companies currently using high-blend biodiesel in their vehicle fleets to continue.  Their return to fossil-based road fuels will force the closure of biodiesel production businesses and facilities, substantially reduce the UK’s carbon savings and  result in more biodiesel being imported in order to meet stringent EU targets, at increased cost to the UK both in financial and environmental terms.

The motion was warmly welcomed by Chair of the UKSBA Mark Sneesby, who said: “Biodiesel produced from waste cooking oil is a key fuel for the future - being both fully sustainable and renewable - I hope lots of politicians realise that and sign the motion.  Removing the tax differential for sustainable biodiesel is short-sighted. Far from being the tax grab the Government hopes it will be, it will result in businesses closing, jobs lost and innovation stifled.  The environmental costs both now and into the future will also be severe. biodiesel users are already saving 50,000 tonnes of CO2 per annum, and this figure is doubling each year as an ever-growing number of companies opt for biodiesel in order to reduce their carbon emissions.

“Sustainable biodiesel plays a significant role in helping to achieve the UK’s renewable energy targets, and the industry should be supported, not crushed.”