Rob Flello MP, chair of the All Party Parliamentary Group for Freight Transport, has written to the Chancellor in advance of the Autumn Statement, calling on him to review the Government’s approach to the use of bio-methane.
Flello said: "The current system of duties and subsidies make it impossible for a bio-methane fuel market to operate. The Government must address this issue in the Autumn Statement".
Businesses from across the freight transport sector contacted Rob expressing frustration at the current system which is biased towards energy production due to subsidies from the Department for the Environment and Climate Change. They want to see a competitive market.
He continued: "Encouraging the use of bio-methane will not only reduce the costs these businesses face but also help the UK move towards a low carbon economy."
If the Government were to change the subsidies for energy as well as cut the level of duty, the UK will see an increase in investment as companies move towards using this more sustainable fuel.
Flello added: ‘The Government must examine this issue carefully and then publish a clear long term strategy. Constant changes in policy and practice make companies wary about investing in new equipment and infrastructure. The UK needs the Government to show that it is committed to the low carbon agenda and that it will support companies which seek to use bio-methane."