In 2008/09, the first year of operation, the Renewable Transport Fuel Obligation (RTFO) met its objective of driving a market for biofuels in the UK. 2.7% of the UK's total road transport fuel supply was biofuel which was slightly over the Government's target of 2.5% and is more than twice the supply of biofuel in 2007/08/. No obligated suppliers pad to 'buy-out' of their obligations. The performance of suppliers in sourcing sustainable fuels was polarised. Whilst several companies met all three of the Government sourcing targets with fully verified data a number also performed poorly. Overall a significant improvement will be required to meet the challenges of the forthcoming EU Renewable Energy Directive. In 2008/09 there was also a 46% carbon saving against the Government target of 40%. The biofuels market has not as yet had a large impact on agriculture in the UK and although an effective driver of the market for biofuel, the RTFO did not, during 2008/09, drive increases in the biofuel production capacity in the UK.