What you need to know
Biofuel is a generic term for fuels that can be produced from or are made up of a renewable material of plant or animal origin. Often they are substitutes or partial substitutes for fossil or mineral fuels.
New Zealand uses very little biofuels in transport and use has declined as biofuels currently cost more than fossil fuels. More than 60 countries have implemented biofuels mandates as they are a proven way to increase the uptake of biofuels and reduce transport emissions.
In January 2021, the Government agreed in principle to implement a biofuels mandate. It is part of a range of measures to reduce carbon emissions from transport in order to hit New Zealand’s 2050 carbon neutral target.
Review of 2008 Biofuel Sales Obligation announced
Officials will review the 2008 Biofuel Sales Obligation, which was repealed before it came into effect. This will allow Cabinet to decide on the design of the mandate by April 2021.