Boost for biofuels

Oil companies may be required to sell a minimum of 0.25 per cent of transport fuel as biofuels in 2008, rising to 2.25 per cent by 2012, says a Government discussion document.

The Government is considering regulating the sale of biofuels, made from renewable sources such as crops and animal waste, as part of its response to climate change.

Climate Change Minister David Parker says such a quota would save the Government more than $16 million under the first phase of its Kyoto Protocol commitments.