RTFA Warns Government Decision on Subsidised US HVO Puts UK Biodiesel Production, Energy Security and Skilled Jobs at Risk

(Renewable Transport Fuel Association) The Renewable Transport Fuel Association (RTFA) has expressed deep concern following the Government’s decision not to implement the Trade Remedies Authority’s recommended anti-subsidy measures on imports of Hydrotreated Vegetable Oil (HVO) from the United States.

Following an extensive investigation, the Trade Remedies Authority (TRA) concluded that imports of US HVO were subsidised and had caused injury to the UK domestic biodiesel industry. The TRA recommended an anti-subsidy duty of approximately £260 per tonne to level the playing field.

Despite the TRA’s findings on subsidy and injury, and its recommendation that a trade remedy should be imposed, the Secretary of State, Jonathan Reynolds, has decided not to implement the measure, concluding it was not in the wider economic and public interest.

The RTFA believes the decision risks creating two serious long-term consequences for the United Kingdom.

First, it threatens the future of domestic biodiesel production and undermines the UK’s energy security and industrial resilience. These should be national priorities. The EU recognises this and already has measures in place to protect its domestic biofuel producers, and it is working on measures to further strengthen Europe’s energy security. Once strategically-important production capacity is lost, investment to rebuild it again is highly unlikely. Greater dependence on imported fuels leaves the UK more exposed to international markets, overseas policy decisions and disruption to global supply chains.

Second, this decision places further pressure on highly skilled, well-paid UK industrial employment. UK biodiesel plants support skilled manufacturing, engineering, technical, laboratory, logistics and operational roles, as well as employment throughout their domestic supply chains. These are precisely the kinds of productive industrial jobs that the UK needs to retain.

The RTFA is particularly concerned by the precedent created when the UK’s trade remedies system can establish both subsidisation and injury to a domestic industry, recommend a remedy, yet Government leaves that industry exposed to unfair competition. We ask the government to work with TRA and industry to assess whether the Economic Interest Test adequately considers the risk of losing domestic production capacity, investment and domestic supply chain resilience.

Ultimately, the RTFA is not seeking protection from legitimate international competition. What our members want is a level playing field where UK producers and overseas suppliers compete on fair and equivalent terms. Open competition can benefit the UK renewable fuels market, but that competition must not be distorted by overseas subsidies that place domestic manufacturers at a structural disadvantage.

“The issue here is much bigger than the price of a tonne of biodiesel today. It is about what sort of renewable fuels industry we want the United Kingdom to have in five, ten or twenty years. We need more clean fuel production capacity, not less.

“The RTFA is not asking Government to shield UK producers from competition. We are asking for a level playing field. British manufacturers are ready to compete with renewable fuel producers anywhere in the world, but they should not be expected to compete against the financial advantage created by overseas subsidies.

“We therefore urge Jonathan Reynolds and the Government to consider not simply the immediate economics of imported fuel, but the long-term value to the United Kingdom of maintaining and growing domestic renewable fuel production, skilled employment, investment and energy security. Our objective is straightforward: fair competition, a level playing field and a strong UK renewable fuels sector capable of investing for the future.” READ MORE