Cabinet has approved the biofuels regulatory framework, which will give effect to the implementation of the biofuel industrial strategy.
Biofuels are internationally recognised as an immediate less carbon-intensive substitute, which blends fuel for conventional mineral fuels to reduce air pollutants from the use of transport fuel.
The framework provides areas to be regulated, namely the feedstock protocol, which mitigates the risk of the biofuels programme towards food security, and the mandatory blending regulations, so as to create certainty of biofuels demand, as well as the cost recovery mechanism for blending of biofuels.
The protocol also provides a biofuels subsidy mechanism for biofuels farmer support and biofuel manufacturer’s support, as well as the selection criteria for biofuel projects requiring a subsidy.