Introduction

Thank you Ed (RFA Chair Ed Gallagher) for that kind introduction. It’s a genuine pleasure to be here this evening to mark the launch of the RFA’s Annual Report and Accounts, and their 4th quarterly report.

Climate change

Ladies and gentlemen, there are some issues that can define an age and shape a generation – I regard climate change as one of those issues.

We cannot run from it in the hope that it will fade away. We cannot ignore it in the hope that it will solve itself. Climate change is real, it’s happening and it’s everyone’s business – so the Government is absolutely serious about meeting this global challenge head on.

That’s why we led the world by adopting a legally binding target to cut all greenhouse gases by at least 80% by 2050 (against a 1990 baseline).

That’s why, today, we unveiled a groundbreaking low carbon transition plan for the UK

And that’s why we set up the RFA and tasked it with the job of implementing the Renewable Transport Fuel Obligation – the RTFO.

While I have this opportunity I’d like to pay tribute to the RFA for the excellent work it’s been engaged in.

Since it was established back in October 2007 the RFA has shown itself to be a respected and effective administrator, playing a key role in helping the UK to be world leaders in carbon and sustainability reporting.

Its Annual Report launched here today is proof not simply of past achievements but also, I’m sure, of future progress.

RTFO is crucially important

As you know, the RTFO obligates suppliers of fossil fuels to ensure that a specified percentage of the road fuels they supply in the UK is renewable- the target for the first year of the obligation, 2008-9, was 2.5% by volume, for the second year it’s 3.25% and, for year three, it’s 3.5%.

And I’m pleased to say that this is a good news story – and that’s because, as we mark the end of the first reporting year, we can confirm that the 2.5% target for this year has been met.

I believe that, taken together, the targets and obligations set out in the RTFO are crucially important.

First, by playing a role in cutting the emissions we produce, they will help to reduce the UK's contribution to climate change.

And, second, by encouraging the sustainable use of biofuels they will help to reduce this country’s reliance on fossil fuels, which in turn will enhance our energy security.

The RTFO also gives us strong foundations on which to build as we look to meet our obligations under the European Renewable Energy Directive - the “RED”.

Biofuels – a low carbon future

I may be a new face among the ministerial team at the DfT but there’s something I already know for certain - the only sustainable future for transport in this country is a low carbon future.

Indeed, today, as part of the low carbon transition plan I mentioned a moment ago, my Department has published a carbon reduction strategy designed to ensure a cleaner, greener future for Britain by ensuring a cleaner, greener future for our transport system.

I believe that, if we are serious about decarbonising transport, then we must also be serious about biofuels. In fact, globally it’s estimated that they could perhaps offer between 338 and 371 million tonnes of CO2 savings each year.

Where we stand today

The issue of biofuels has certainly generated debate and discussion.

So the Government’s approach has been to examine the issues, to consider the evidence and to base the development of future policy on the facts.

The data published by the RFA today shows us that it is possible to source biofuel that meets our sustainability standards, and to effectively collect and monitor data on this.

And I have to say that British suppliers on the whole have been rising to the challenges set by the RTFO, and showing that future targets are ambitious but achievable.

To be frank though, there are some companies that have not been performing as well as expected.

To address this under-performance issue we pushed for the introduction of mandatory sustainability criteria under the European Renewable Energy Directive.

These sustainability standards simply have to be met. In short, they mean that poor performing companies will have no where to hide.

To help spread best practice we will be supporting R&D into sustainable biofuels so that more companies can achieve the same levels of excellence demonstrated by such UK producers as Greenergy and British Sugar.

Together with our ambitious research strategy we are also funding research into new low carbon technologies.

For example, the Government recently provided £18 million for the launch of a Sustainable Bioenergy Centre, a hub of academic and industrial research partners, including the University of Cambridge and Rothamsted Research.

Research has a crucial role to play, but if we are to deliver truly sustainable biofuels, then we must ensure that researchers and producers build on the UK’s impressive track record of collaboration, co-operation and partnership working - ultimately, that’s the best way to get results.

The UK has also been working closely with the European Commission to address Indirect Land-Use Change under the new directives.

If we can make progress on this important issue then, not only will we be making a vital contribution to a more sustainable low-carbon future, but we will also be helping to achieve greater investor certainty for the biofuels industry for years to come.

Conclusions

I started my speech by arguing that climate change is a global challenge that we cannot, and will not, turn our backs on.

Meeting this challenge will not be easy. But I believe that if we combine clarity of vision and political will with determination and innovation, then we can be equal to the task.

I am also convinced that biofuels will very much be part of the solution to the climate change problem - and that’s precisely why the work of the RFA has been so valuable.

Indeed, from day one of its existence, the RFA has achieved that much sought after goal of public life – it has made a positive difference. I hope it’s a role the RFA will continue to play as, together, we build a low carbon future for our transport system, our country and the environment we all share.

Thank you

(This speech represented existing departmental policy but the words may not have been the same as those used by the Minister.)