Most oilseeds are internationally traded commodities. Subsequently, their supply chains are dynamic and responsive to global market developments in price and availability. The rise in cost of cooking oil has been influenced by the war in Ukraine due to its role as a major exporter of sunflower oil and oilseed rape, as well as additional factors unrelated to the conflict, such as weather conditions and currency fluctuations.

We have a highly resilient food supply chain, which has coped well in responding to unprecedented challenges. Through Defra's engagement with small and medium-sized enterprise (SME) food and drink manufacturers, including a monthly SME forum, and regular bilateral conversations with SMEs and their business representative organisations, we have gained a good understanding of the challenges SMEs are facing in relation to the rising cost of cooking oils.

In response to the Ukraine invasion the Food Standards Agency issued guidance to Local Authorities advising them that sunflower oil may be substituted with refined rapeseed oil, or fully refined coconut, soyabean, and palm oils, as well as fully refined maize/corn oils without the label reflecting this immediately, where absolutely necessary, and as a temporary measure. This has helped reduce burdens on businesses impacted by supply chain disruption.

We are in regular ongoing contact with representatives in the arable sector, including major grain traders and oilseed crushers, to discuss any potential pressures on domestic production, impacts of global events on supply chains and relevant developments in other countries.

In 2019 54% of total renewable fuel supplied under the Renewable Transport Fuel Obligation (RTFO) was produced from used cooking oil (UCO), this comprised seventy nine per cent of biodiesel.

Estimates of future volumes of renewable fuel supply were included in “Cost Benefit Analysis: Amendments to the Renewable Transport Fuel Obligations Order” which accompanied the Renewable Transport Fuels and Greenhouse Gas Emissions Regulations 2018. Appendix 3 of the cost benefit analysis includes estimates of total waste based biodiesel supply.

Under the Renewable Transport Fuel Obligation (RTFO) biofuels reported as being made from waste have risen from 12 per cent of total biofuel supply in the first year of the obligation 2008/09, to 66 per cent in 2017/18. In 2017/18 the most widely reported source for biodiesel, by feedstock and country of origin, remained used cooking oil from the UK. (Biofuels Statistics obligation year 10 2017/18 - Report 6).

Last year the Government introduced changes to the RTFO which will almost double the use of renewable fuels from 2018 to 2020. Bio-diesel made from used cooking oil remains eligible for double rewards under the scheme, and will benefit from the increased market for renewable fuels.

Defra has not made any specific assessment of the potential benefits of used cooking oil in generating carbon-neutral electricity.

There are restrictions on the disposal of used cooking oil and energy recovery for the production of electricity is one of the available options for managing such waste. As with other biodegradable materials, the energy recovered from used cooking oil is classed as ‘renewable energy’ and counts towards renewable energy targets aimed at decarbonising energy generation.

I refer the noble Lord to my answer of the 15 January [Official Report, column WA18]. The Renewable Transport Fuel Obligation (RTFO) post implementation review published in draft for consultation will consider the support provided for biofuels made from wastes, such as biodiesel made from used cooking oil.

That consultation closes on the 7th of February. We will be considering carefully the views offered in response before publishing a final review in the spring, and considering what, if any, changes are necessary to the RTFO to support the use of biofuels made from waste products.

We amended the Renewable Transport Fuel Obligation (RTFO) in December 2011 to provide extra support to biofuels made from waste feedstocks, including used cooking oil, by awarding two Renewable Transport Fuel Certificates (RTFCs) per litre.

We are currently assessing the available data and other evidence regarding the impact of these and other changes made to the RTFO in a post implementation review. We will shortly be asking suppliers to input to that review, including providing views on the effectiveness of double counting biofuels made from waste.

The latest statistics for year 5 of the obligation (15 April 2012 to 14 April 2013) provide the volume of sustainable biofuel supplied by feedstock and are available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/226038/rtfo-2012-13-year_5-report-4.xls. This provisional data suggests that around 2% of biofuel supplied under the RTFO was made from virgin oils.

The Renewable Transport Fuel Obligation (RTFO) provides additional support to biofuels made from waste (such as used cooking oil) by awarding two renewable transport fuel certificates (RTFCs) for each litre supplied. This means that biofuels made from waste receive double the incentive provided for biofuels made from crops.

The RTFO includes a certificate trading mechanism to increase the efficiency of compliance. The value of individual certificates is determined by the market. Demand and prices will fluctuate during the year for various reasons, including the price of oil.

At a certificate auction in January 2013, the average price was 11p per certificate. We will be reviewing the effect of double certification for biofuels made from waste later in 2013.

The Department for Transport does not collect information on the country in which biofuel is produced, this information is not required to administer the Renewable Transport Fuel Obligation or meet reporting requirements under the renewable energy directive. The data provided therefore relate to biofuel where the origin of the relevant feedstock (used cooking oil, or waste oil) is the UK.

The Department for Transport does not collect information on the country in which biofuel is produced, this information is not required to administer the Renewable Transport Fuel Obligation or meet reporting requirements under the renewable energy directive. The data provided therefore relate to biofuel where the origin of the relevant feedstock (used cooking oil, or waste oil) is the UK.

We have committed to undertake a review in 2013 of the double certificate scheme and support provided under the Renewable Transport Fuels Obligation (RTFO). In 2013 we will have completed the first full obligation year under an amended RTFO. This is the right time for the review as we will have the data necessary to help us consider what the effect of double certification has been. I have asked for the review to be progressed as soon as data are available. It is too soon to determine the longer term trend of certificate prices which are influenced by a range of factors.

The Government recognise that used cooking oil can be one of the most sustainable biofuel feedstocks, not having the indirect effects associated with certain other types of feedstock.

Amendments made to the renewable transport fuel obligation (RTFO) in December 2011 provide additional support for biofuels made from waste, such as biodiesel made from used catering oil, which meets mandatory sustainability criteria. This recognises the potential positive contribution such fuels can make in helping us achieve emissions targets.

The Department for Transport administers the RTFO and produces statistics on the supply of biofuel and biogas in the UK by country of origin and feedstock, and reports performance. Data are available at: http://www.dft.gov.uk/pgr/statistics/datatablespublications/biofuels/. In obligation year 2010-11, 459 million litres or 51% of biodiesel reported under the RTFO was produced from used cooking oil. On a weighted average, this represents a greenhouse gas saving of 84% when compared to fossil fuels. Verified data are not yet available for 2011-12. The latest reported data suggest 489 million litres or 89% of biodiesel reported under the RTFO was produced from used cooking oil between April 2011 and December 2011. On a weighted average, this represents a greenhouse gas saving of 83% when compared to fossil fuels.

The Chancellor of the Exchequer, my right hon. Friend the Member for Tatton (Mr Osborne), routinely considers the balance between providing fiscal support through discounted tax rates or market-based mechanisms. The 20p per litre duty differential for used cooking oil came to an end as intended on 31 March 2012. Under changes to the renewable transport fuels obligation, biofuels derived from waste, including used cooking oil, receive twice the level of support as provided to conventional biofuels.

Information on historic fuel duty receipts by fuel type is published in table 2 of the UK Trade Info Hydrocarbon Oils Bulletin at:

https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx

The forecast of future fuel duty revenues has been published in table 4.7 of the Office for Budget Responsibility’s March 2012 “Economic and Fiscal Outlook”. This considers dutied fuels in aggregate rather than individually.

The Chancellor of the Exchequer, my right hon. Friend the Member for Tatton (Mr Osborne), routinely considers the balance between providing fiscal support through discounted tax rates or market-based mechanisms. The 20p per litre duty differential for used cooking oil came to an end as intended on 31 March 2012. Under changes to the renewable transport fuels obligation, biofuels derived from waste, including used cooking oil, receive twice the level of support as provided to conventional biofuels.

Information on historic fuel duty receipts by fuel type is published in table 2 of the UK Trade Info Hydrocarbon Oils Bulletin at:

https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx

The forecast of future fuel duty revenues has been published in table 4.7 of the Office for Budget Responsibility’s March 2012 “Economic and Fiscal Outlook”. This considers dutied fuels in aggregate rather than individually.

The 20p per litre duty differential for used cooking oil came to an end as intended on 31 March 2012. Under changes to the renewable transport fuel obligation (RTFO), biofuels derived from waste including used cooking oil receive twice the level of support as provided to conventional biofuels. An impact assessment was published by the Department for Transport on 7 November 2011, at:

http://www.dft.gov.uk/consultations/dft-2011-05

Cars that have been constructed or modified to run on road fuel gases benefit from a £10 reduction in taxation levels for alternative fuel cars under vehicle excise duty. Owners of liquefied petroleum gas capable vehicles benefit from a fuel duty reduction worth the equivalent of 35.79p per litre compared with petrol, and natural gas capable vehicle owners from a reduction worth in excess of 40p per litre. Budget 2012 extended the existing 100% first-year capital allowance for gas refuelling equipment for two years to 31 March 2015.