A new government agency responsible for managing the UK’s commitment to biofuels has been established by the Department for Transport (DfT).

Launched on Monday (5 November) by DfT secretary Ruth Kelly, the Renewable Fuels Agency (RFA) will ensure that 5% of all fuels sold in the UK come from biofuels by 2010.  It is estimated that this could save 2.6m-3m tonnes of carbon dioxide a year. The commitment is to increase to 10% by 2020.

Chairman of the RFA, Ed Gallagher a former chief executive of the Environment Agency said the body would seek to encourage sustainable practices by praising those companies who operate responsibly while openly shaming those that do not.

However, he dismissed suggestions that Britain’s farmers would lose out to imported biofuels.

“Other countries do offer greater incentives, but we’ll be watching to ensure that these don’t act against the interests of British farmers,” Prof Gallagher said.

The biofuels market, he said, “is an international one and farmers are used to dealing in international markets”.

While the Renewable Transport Fuels Obligation does not require biofuels to be produced from domestic sources, the RFA is obliged to consider the effect on domestic agriculture and biodiversity in its review of practices employed by the fuel companies.