Transport Minister Stephen Ladyman today launched a consultation on the Renewable Transport Fuel Obligation (RTFO), and how it will operate. The Obligation means that by 2010, 5% of all the fuel sold on UK forecourts will come from a renewable source. The measure is predicted to save 1million tonnes of carbon a year by 2010.

The consultation focuses on:

* The detailed design of the scheme and which suppliers will be affected;

* How suppliers of renewable fuel would report on the carbon savings and wider impacts of those fuels;

* How the RTFO might develop after 2010/11. Stephen Ladyman said:

"The Obligation will play a key role in making road transport fuels greener. In carbon terms, it's expected to be the equivalent of taking a million cars off the road by 2010.

"By consulting on the details now we are paving the way for the Obligation to start in 2008. In particular, we want to encourage the supply of biofuels from sustainable sources which save as much carbon as possible. I look forward to hearing people's views on this and other issues as soon as possible."

The consultation will finish on 17 May.