Biodiesel ‘u-turn’ slammed

Wednesday 18 January 2006

Green MEP Dr. Caroline Lucas has called on the European Union to block the UK’s tax on vegetable oil sold as car fuel, claiming that the move goes against a 2003 directive on biodiesel.

Although reduced fuel duty on vegetable oil was introduced as one the Government’s attempts to promote biofuels, some vegetable oils have now been reclassified as ‘fuel substitutes’ making them liable to taxation. As part of the move, the UK is demanding a rebate for the three years of reduced duty on the fuel.

“In public, the government has said it supports greater use of renewable alternatives to petrol – but its taxation policies show the exact opposite is in fact the case,” said Dr. Lucas.

“Tony Blair has repeatedly told us that tackling climate change is his biggest priority, but his government doesn’t seem to be taking the same view. It’s really very simple: the UK must do everything it can to encourage a reduction in demand for fossil fuels, and stop trying to cover up its failures by picking fights with the EU over how to implement the very laws which are designed to help it do so.”

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