In a move that is likely to prove expensive for motorists and consumers, the UK government, on 15 April, is set to increase its target for biofuel use to 5 per cent of transport fuels.
But new research from Chatham House estimates that as this target is reached, biofuels will cost UK motorists in the region of £460 million in the coming year. This figure represents the increased cost of fuel from higher prices at the pump and the need to fill-up the car more often because biofuels have lower energy content. Further increases to comply with EU biofuels targets mean that this could triple to around £1.3 billion a year by 2020.
The report, The Trouble with Biofuels, by Rob Bailey, argues that this does not represent good value for money. Biofuels are an expensive way to reduce greenhouse gas emissions – the research found that typically the cost of emissions reductions from biofuels are several times what the government has identified as an appropriate price to pay.
See full Press Release: http://www.chathamhouse.org/media/news/view/190801
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