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Tax cuts on biofuels could help fleets slash CO2, say campaigners

A duty cut for greener biofuels could help fleets slash their carbon footprint by using more sustainable alternatives to diesel fuel, according to campaigners.

The coalition argues price reductions in renewable diesel fuel can be achieved at no cost to the taxpayer

Over 30 fleet leaders and environmental firms are calling on ministers to provide greater support to cleaner fuels as they warn of a continued “absence of action” from the Government.

In a letter to Transport Minister Jesse Norman, they cite the “urgent imperative” to reduce harmful pollutants, with one in 20 deaths across the UK directly attributed to poor air quality.

Led by Green Biofuels, a leading provider of hydrogenated vegetable oil renewable fuel, the letter argues price reductions in renewable diesel fuel can be achieved at no cost to the taxpayer, with consumers encouraged to switch to sustainable alternatives by creating price parity with diesel.

They also argue that government support for renewable diesel is essential while EV infrastructure is developed.

Signatories include leading figures in firms such as infrastructure contractor Skanska and haulage firm JW Suckling Transport as well as from clean air campaigner and CEO of Enjoy the Air, Kate Barnard, and environmental campaigner Dominic Dyer.

They write “while some incentives do exist in the UK, these do not achieve price parity with diesel. As such, we believe your department, in collaboration with the Treasury, should look at reducing duties and creating tax incentives to catalyse the switch to renewable diesel.”

Julian Keites, director of sustainability at Green Biofuels, said: “Electric vehicles are not the be-all and end-all of sustainable transport, and scrapping existing vehicles is not a green solution.

“Sustainable alternatives to harmful diesel fuels have a vital role to play in rapidly cutting greenhouse gas emissions and improving air quality.

“The collaboration of support shown by uniting these diverse range of business leaders and environmental campaigners demonstrates the positive and practical role advanced biofuels play in the future of the UK’s transition to net zero.”

Dominic Dyer, environmental campaigner, said: “This unified call for action clearly demonstrates the strong determination of both business leaders and everyday consumers who want to do the right thing for the environment.  A duty cut for clean fuels, paid for by increased duty on dirty diesel, is essential if the UK is to cut greenhouse gases quickly.”

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Written by Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.

Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.

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