The UK counts volume, and that certificate trades

Open the UK's Renewable Transport Fuel Obligation (RTFO) and it becomes clear why certificate prices differ by country.

The frame of the scheme

A supplier putting 450,000 litres or more of transport fuel onto the market in an obligation year must register and may be obligated.

An obligated supplier receives certificates (RTFCs) in proportion to the renewable fuel supplied — one per litre (or equivalent) of sustainable renewable fuel supplied.

Two devices attach to that.

A multiplier — fuel from certain wastes and residues, dedicated energy crops, and RFNBOs receives double the certificates per litre. What the feedstock was changes how many certificates there are.

A buy-out — falling short means paying. The rates are 50 pence for a standard certificate and 80 pence for a development fuel certificate.

And the decisive line

"RTFCs can be traded on the open market."

That line changes the price structure. A UK low-emission fuel producer already holds tradable revenue from a public obligation before selling anything into the voluntary market. That revenue covers part of the extra cost, so what a voluntary certificate has to add on top is smaller by that much.

That structure sits behind the UK's coverage rate coming out low, at 27%.

Gaseous fuels

Gases such as biomethane are provided for too — gas is reported in kilograms rather than litres, and gas-specific multipliers apply for certificate issuance.

※ This article cites the RTFO guidance published by the UK Department for Transport.

This article expands one section of LCS EAC special report 4, Different Schemes, Different Shares. The full report works from documents published by the UK Department for Transport, the German Bundestag, the Danish Energy Agency and the Korea Energy Agency as primary sources, and does not reproduce figures that were not confirmed in a primary source.